Weekly Market Outlook for 22 May to 26 May

Weekly Market Outlook for 22 May to 26 May
Weekly Market Outlook for 22 May to 26 May

by Ruchit Jain Last Updated: May 22, 2023 - 10:48 am 568 Views
Listen icon

It was a phase of corrective week for the Nifty as the index corrected from its hurdle of 18450 to sneak below 18100. The index took support around its 20 DEMA and witnessed a pullback towards the end of the week to close around 18200 with a weekly loss of over half a percent.

Nifty Today:

Our markets had seen a relentless rally in last one and a half month. Hence the momentum readings approached the overbought zone and indicated some divergences as the Nifty approached the 78.6 percent retracement hurdle at 18450. The index corrected during the week to relieve the overbought set-ups, but we did not see any short formations in this correction. The 20 DEMA around 18080 acted as a support in Friday’s session and if this support remains intact, then there’s a possibility of a resumption of the uptrend from this support. The Bank Nifty continued its relative strength while the IT space too saw a pullback move in Friday’s session and supported the index. The concern during the week was the depreciating Rupee which tested 82.80 mark. However, if we look at the USDINR positional charts, then it is still in a consolidation phase and will be seen as a concern only if it sustains above 83 level. Hence, till the INR is below 83 and Nifty is above the support of 18080-18050, there does not seem to be a major risk in the coming week. Hence, traders should keep a close tab on these levels and position their trades accordingly. 

                                                              20 DEMA acted as a support; no short formations in recent correction

Nifty Graph


On the higher side, 18300-18350 is the immediate resistance followed by the swing high at 18450. A breakout beyond this range of 18450-18050 will then lead to a directional move in the direction of the breakout.


Nifty, Bank Nifty Levels and FINNIFTY Levels:


Nifty Levels

Bank Nifty Levels

           FINNIFTY Levels

Support 1




Support 2




Resistance 1




Resistance 2




How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Stock in Action: Muthoot Finance Ltd

Movement of the Day:

Weekly Wrap-Up: BharatPe’s EBITDA Finally turn Positive

What does BharatPe do? Payment options for customers and companies based on QR codes. Among other things, users can use it to pay for shopping, dining out, taxis, hairdressers, mobile companies, and energy bills. By scanning a QR code, users may make payments using their bank account. It is an app-based system that enables retailers to collect payments from clients. Moreover, customers may apply for loans. The application works with iOS and Android smartphones.

Market Outlook for 30 November 2023

Our markets started the day with a gap up opening and it rallied higher ahead of the monthly F&O expiry day as the index surpassed the important hurdles. The index ended the day around 20100 which was its highest point of the day and posted gains of over 200 points.