The trading session of May 29 could be volatile as it's the monthly F&O expiry for Nifty and Bank Nifty, said market experts on May 28.
Analysts at Bajaj Broking Research said the index is likely to extend the consolidation in the range of 25,200-24,400, which was seen in the last 12 sessions.
"On the lower side 24,700-24,650 is likely to act as immediate support while short-term support is seen at 24,400–24,500 being confluence of 20 days EMA, previous breakout area and last 2 weeks lows," said Bajaj Broking Research.
For Bank Nifty, it said, "We expect the index to extend the last 4 weeks' consolidation in the broad range of 56,000-53,500. Only a move above 56,000 levels will signal acceleration of the up move towards 56,700 levels in the coming sessions. Immediate support is placed at 54,800 levels while the short-term support is seen at 54,000-53,500 being the confluence of key retracement and 50 days EMA."
On May 28, the Nifty spent another day in consolidation, with the index remaining largely range-bound ahead of the monthly expiry.
Rupak De, Senior Technical Analyst at LKP Securities said, "On the hourly chart, the index has slipped below the critical 21-EMA and 50-EMA, indicating a weakening trend in the near term. Immediate support is seen at 24,700; a sustained move below this level could trigger further selling pressure. Significant put writing at 24,700 reinforces the technical setup. On the higher end, notable call writing is observed at 24,800. A decisive move above 24,800 could force call writers to cover their positions at the 24,800 CE, potentially triggering a sharp rally in the market."
Mandar Bhojane, Equity Research Analyst, Choice Broking said support for the Nifty is placed at 24,700, while immediate resistance is seen in the 24,900–25,000 zone.
"A sustained close above 25,000 could invite fresh buying interest, potentially driving the index toward 25,400 and 25,600 levels. In the absence of a decisive breakout, range-bound trading is expected to continue, and traders are advised to remain cautious and look for confirmation signals before entering new positions. On the volatility front, the India VIX eased by 2.29% to 18.02, indicating a slight reduction in trader nervousness. In the derivatives space, the highest Call open interest was at the 25,000 strike, while the highest Put OI stood at 24,500, suggesting a likely near-term range between 24,500 and 25,000. Market participants should continue monitoring global cues and domestic macro data for further direction," he said.
"Much of the positive narrative appears priced in, limiting the near-term upside for domestic equities," Deepan Kapadia, chief investment officer of portfolio management services at Spark Capital PWM told Reuters.
"Markets may see further consolidation ahead of the June 6 RBI MPC meet, with liquidity surplus, hopes of a domestic rate cut and improving growth prospects balancing global trade uncertainty."
Ajit Mishra – SVP, Research, Religare Broking said, "Despite stable global cues and favorable domestic factors, the market is being weighed down by inconsistent FII inflows, which is reflected in the recent increase in volatility.
"From a technical perspective, participants are trading within the prevailing range, and a clear directional trend is expected to emerge once the index breaks out of the 24,400–25,200 range. However, traders should maintain a positive bias, focusing on sectors and themes that are witnessing noticeable buying interest."
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