Market Outlook for 31 May 2024

Ruchit Jain

Last Updated: 31st May 2024 - 09:45 am

Nifty corrected sharply on the May series expiry day and traded with a negative bias throughout the day. The index ended the day below 22500 mark with a loss of about a percent. However, the Banking index bucked the trend as inspite of the broader market sell-off, the Bank Nifty index ended in the green.

Nifty has corrected sharply in last four trading sessions from its resistance of 23100 zone and it seems that market participants have lightened up positions ahead of the big event. In last few days, FIIs covered their short positions while the Client section unwound their long positions. The broader markets have also corrected which clearly indicates profit booking ahead of the event. Now, we may see some consolidation for a day while formation of new positions next week will lead to the next directional move. On the charts, the index has ended around a crucial short term support of 22450 which is the 40 DEMA, while positional support is placed in the range of 22200-22000 zone. Till this supports are intact the broader trend remains intact and thus, this could be just a correction within an uptrend.

Nervousness in markets ahead of the big event

nifty-chart

Nifty, Bank Nifty Levels and FINNIFTY Levels:

	NIFTY Levels	SENSEX Levels	BANKNIFTY Levels	FINNIFTY Levels
Support 1	22350	73540	48300	21500
Support 2	22250	73190	47950	21400
Resistance 1	22650	74360	49050	21715
Resistance 2	22830	74850	49400	22830

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