Market Outlook for 28 May 2024

Ruchit Jain

Last Updated: 28th May 2024 - 10:07 am

Our markets started the week on a positive note and the Nifty rallied higher to surpass 23100 level. However, we witnessed some profit booking during the end of the session and Nifty gave up all the gains to end below 22950 with a marginal loss.

Nifty resisted around the rising trendline hurdle and witnessed some profit booking towards the end. The banking space continued to outperform and is catching up for the recent underperformance. INDIA VIX rallied higher and tested 26 level during the day, which is expected to remain high till the outcome of the election results. While the daily RSI remains positive, the oscillator on the lower time frame chart has shown signs of pullback from the overbought zone. Such situations usually indicate correction within an uptrend. However, there are signs of reversal of the trend yet, it’s just that the volatility could remain high due to the event. Hence, traders are advised to keep a buy on dip approach and enter longs near supports so that risk reward becomes favourable. The immediate support for Nifty is placed in the range of 22800-22750 followed by strong support around 22600. Any dips towards the supports could be used to form long positions. On the higher side, the trendline resistance for Nifty is seen around 22100 which if surpassed, then it has potential to rally towards 22450-22500 in the short term.

INDIA VIX rallied higher; leading to some profit booking in stocks

nifty-chart

Nifty, Bank Nifty Levels and FINNIFTY Levels:

	NIFTY Levels	SENSEX Levels	BANKNIFTY Levels	FINNIFTY Levels
Support 1	22830	75040	49000	21840
Support 2	22730	74690	48700	21720
Resistance 1	23070	75880	49630	22120
Resistance 2	23200	76350	50000	22270

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