Market Outlook for 29 May 2024

Ruchit Jain

Last Updated: 29th May 2024 - 10:13 am

The benchmark indices consolidated in a range in Tuesday’s session, but the broader market momentum was weak as advance decline ratio was more in favour of the declines. Nifty resisted around the 23000 mark, and ended the day below 22900 with a marginal loss.

No major move was seen on indices on Tuesday, but there was stock specific correction and hence the market breadth was negative. Nifty has resisted near the higher end of a trendline which also coincided with the retracement hurdle. Also, the market has rallied ahead of the event and INDIA VIX continues to inch higher (now at 24) which may be leading to nervousness and hence some profit booking. However, the overall trend remains positive as of now as the short positions have been covered by the FIIs, index is trading above its key moving average supports and the RSI on the daily chart is positive. Since the readings on the lower time frame chart have seen a negative crossover from the above mentioned resistance for the Nifty, this could be seen as a correction within an uptrend. The immediate supports for Nifty are placed around 22800, followed by 22650-22600 range. On the higher side, hurdle is seen around 23100 and once this is surpassed the index could then continue the uptrend towards 23400.

Considering the above analysis, traders are advised to look for buying opportunities on declines near the mentioned support levels. One can keep position sizing low due to the event as volatility could continue to remain high.

Profit booking in broader markets as INDIA VIX rallies higher

nifty-chart

Nifty, Bank Nifty Levels and FINNIFTY Levels:

	NIFTY Levels	SENSEX Levels	BANKNIFTY Levels	FINNIFTY Levels
Support 1	22780	74780	48770	21850
Support 2	22690	74470	48500	21770
Resistance 1	22970	75480	49420	22050
Resistance 2	23050	75800	49700	22130

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