Nifty Today Outlook Report - 23rd May, 2022

market outlook for 23-may-22

by Ruchit Jain Last Updated: May 21, 2022, 10:18 AM IST

The Nifty started this week around the 15800 mark and the Nifty surpassed the 16000 mark, we saw a sharp up move in the index towards 16400 in just a couple of sessions. The sharp sell-off in the global markets then led to a huge gap down on the weekly expiry day and the market resumed its downmove to end around 15800 again. However, it was not done with it yet, surprisingly the index again rallied sharply in the last trading session and it ended this volatile week above 16250 with weekly gains of over 3 percent.

nifty

 

It was one of the most difficult week for traders as markets have oscillated sharply on both sides. The alternate bouts of buying and selling perplexed market participants as to the primary trend of the index. In our view, the recent activity in the Nifty where it has taken support several times as it approached 15700-15800 and has faced resistance around 16400 has changed the trend from down to sideways.

Nifty Today:



The index has formed a broad range of 15700-16400 where we can see multiple supports and ’20 DEMA’ hurdle on the higher end i.e. around 16400. Since the short term trend has now changed to sideways, the next directional move will now depend on a breakout beyond the mentioned range and hence, traders should look for either side breakout in the coming week. A move above 16400 could then lead to a decent up move towards 16800 while a break below 15700 would resume the downtrend.

On the bank Nifty index, the ’20 DEMA’ resistance is placed around 34740 and a move above that is required to see a deeper pullback in the short term. Looking at this week’s movement, we advise traders to wait for a clear breakout from the above mentioned range and then trade in the direction of the breakout.

 

 

Nifty Levels

Bank Nifty Levels

Support 1

15950

33630

Support 2

15700

33000

Resistance 1

16400

34740

Resistance 2

16600

35500

 

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.

Disclaimer

Investment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
SENSEX
52,727.98
462.26 (0.88%)
Nifty 50
15,699.25
142.60 (0.92%)
Nifty Bank
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492.45 (1.49%)

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SENSEX
52,727.98
462.26 (0.88%)
Nifty 50
15,699.25
142.60 (0.92%)
Nifty Bank
33,627.45
492.45 (1.49%)

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