Trading Plan: Will Nifty 50 defend 24,700, Bank Nifty manage to hold 54,550 amid rangebound trading?

Nifty Trading Plan

The Nifty 50 and Bank Nifty made a strong comeback after a day of weakness, rising nearly 1 percent on May 23. While the trend remains positive, the Nifty 50 is expected to remain rangebound in the near term, as long as it sustains below 25,116. A move above this level can take the index toward the 25,200–25,300 zone. However, the immediate support is placed at 24,700; a break below this could drag the index down toward 24,460. Meanwhile, if the Bank Nifty defends the 54,550 zone, a march toward 55,700–56,000 is likely in the upcoming sessions. Conversely, breaking below this level may invite major selling pressure, according to experts.

On May 23, the Nifty 50 closed at 24,853, up 243 points (1 percent), while the Bank Nifty climbed 457 points (0.83 percent) to 55,398. Market breadth turned favourable for the bulls, with about 1,580 shares advancing against 977 declining on the NSE.

Nifty Outlook and Strategy

Rajesh Bhosale, Technical Analyst at Angel One

Overall, it was a week of consolidation. Being in the overbought zone, the Nifty failed to attract follow-up buying beyond the psychological 25,000 level. However, the broader uptrend remains intact, as key support levels were respected. This resulted in a small-bodied candle with a lower shadow on the weekly chart—a sign of buying interest at lower levels.

Going forward, consolidation may persist. A double bottom formation is visible on the hourly chart near 24,500, which also aligns with the 20DEMA, making it a crucial support zone. The primary uptrend is likely to resume only after a sustained move above 25,000. Until then, a "buy on dips and sell on rise" strategy remains appropriate. While key indices stayed in a range, thematic plays continued to outperform. Traders and investors are advised to focus on such pockets for potential outperformance.

Key Resistance: 25,000, 25,100

Key Support: 24,650, 24,500

Strategy: Buy Nifty Futures on dips around 24,700, with a stop-loss of 24,570, targeting 25,000 / 25,100.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

The Nifty 50 settled 167 points lower for the week ended May 23. The index is now approaching a critical resistance zone at 25,000–25,200. A sustained breakout above this zone could unlock further upside potential. Conversely, a decisive close below the lows of the past two weeks, around 24,400, may trigger fresh profit booking.

A sustained move above 25,000 may lift Nifty to 25,200–25,500, while a break below 24,600 could drag it down to 24,400–24,200. We expect Nifty to trade within the 25,500–24,200 range with a mixed bias. Momentum indicators remain cautious—weekly RSI is nearing a bearish crossover, and Stochastic has turned negative from overbought levels, hinting at possible consolidation or profit booking.

Key Resistance: 25,000, 25,150, 25,350

Key Support: 24,800, 24,700

Strategy: Buy Nifty Futures around 24,725 with a stop-loss around 24,600, targeting 24,950–25,100.

Anshul Jain, Head of Research at Lakshmishree Investments

Nifty wrapped the week with a Hammer candle, signaling bullish intent after defending the fair value area high of 24,589. However, the candle also forms an inside bar relative to the previous week, suggesting consolidation. For a clear directional move, the index must break and sustain above 25,063. A decisive move past this level could trigger a rally toward 25,847—the next key resistance marked by a weekly order block.

On the downside, immediate supports are seen at 24,736 and 24,584. Technically, both the 10-day and 20-day EMAs are well-aligned to fuel an upward breakout. Until a clean breach of 25,063 occurs, expect a tight range. The setup is ripe, but confirmation is key for trend continuation.

Key Resistance: 25,063, 25,250

Key Support: 24,736, 24,584

Strategy: Buy Nifty Futures on breakout above 25,063 or on dips to 24,736, with a stop-loss below 24,650, targeting 25,250.

Bank Nifty - Outlook and Positioning

Rajesh Bhosale, Technical Analyst at Angel One

Bank Nifty continued to oscillate within its prior 9-day range, with no significant changes in the technical setup. Our bias remains unchanged: unless there is a breakout above the immediate resistance zone of 55,550–55,600 or a breakdown below the support band of 54,600–54,500, momentum acceleration remains unlikely. Prices are expected to remain rangebound.

That said, the index has repeatedly found support in the 54,600–54,500 zone, which aligns with the 20DEMA, indicating a slight bullish tilt and increasing the likelihood of a potential breakout in the coming week. If such a breakout occurs, the index could initially move past 56,000, with further gains likely beyond that level.

Key Resistance: 56,000, 56,200

Key Support: 55,000, 54,600

Strategy: Buy Bank Nifty Futures on dips around 55,000, with a stop-loss of 54,600, targeting 56,000 / 56,200.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

The Bank Nifty ended the week with a modest gain of 43 points. On the weekly chart, a Doji candlestick has formed, signaling indecision among market participants. Despite this uncertainty, the index remains within a bullish flag pattern, indicating a consolidation phase within a larger uptrend.

A decisive breakout above this pattern would confirm a continuation of the rally, while failure to do so may extend the consolidation phase. Technically, a move above 55,500 could take Bank Nifty to 56,000–56,500, while a break below 55,000 may drag it down to 54,500–54,000. For the week ahead, the Bank Nifty is expected to trade within the broader range of 56,500 to 54,000, with a mixed bias. Momentum indicators like the RSI and Stochastic Oscillator have flattened, reinforcing the current lack of directional strength.

Key Resistance: 55,600, 55,900

Key Support: 55,000, 54,700

Strategy: Buy Bank Nifty Futures near 55,100, with a stop-loss of 54,900, targeting 55,650–55,800.

Anshul Jain, Head of Research at Lakshmishree Investments

Bank Nifty has spent five weeks in broad consolidation, with price action tightening yet remaining rangebound. While not ultra-compressed, the structure reflects underlying accumulation. A failed breakdown within this range further strengthens the case for an imminent breakout. A decisive move above 56,000 will confirm bullish intent, likely attracting aggressive long positions.

With the 10- and 20-day EMAs aligned as momentum drivers, there’s little overhead resistance to stall the rally. Post-breakout, bulls could target the 58,000 mark. On the downside, the swing low at 54,576 is a crucial support—any meaningful dip must hold above this level to retain the bullish bias. The stage is set, but confirmation is key.

Key Resistance: 55,695, 56,000

Key Support: 54,576, 54,442

Strategy: Buy Bank Nifty Futures on breakout above 55,695, with a stop-loss below 55,400, targeting 56,000 / 56,250.