Benchmark indices ended marginally lower on May 15, with the Nifty holding the 22,200 mark. Analysts said that a decisive move beyond 22,250 may push the Nifty towards 22,600, while the Bank Nifty is expected to trade in a range of 48,300-46,900 in the short term. The Nifty 50 settled 17 points or 0.08 percent lower at 22,200.55, and Nifty Bank fell 172 points or 0.36 percent to 47,687.45 on Wednesday. About 1,338 shares advanced, and 915 shares declined on NSE.
Nifty outlook and strategy
Rupak De, Senior Technical Analyst, LKP Securities
Nifty traded sideways as it failed to generate any significant directional breakout. Bulls struggled to push the Nifty above the 22,250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22,250. A decisive move beyond this level could propel the Nifty towards 22,600. Conversely, a failure to sustain above 22,200 might invite selling pressure.
Key Resistance: 22,300 - 22, 400 - 22,550
Key Support: 22,115 - 22,060 - 21,950
Strategy: Buy Nifty May future above 22,300 for an upside move towards 22,380/22,480.
Stoploss: Below 22,200
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Vidnyan Sawant, HOD - Research, GEPL Capital
In the recent correction from its record high levels, the Nifty found strong support near 21,800, which aligns with the 61.8 percent Fibonacci retracement level of the previous rise from 21,137 to 22,795. Currently, the index is in a bounce-back phase. However, the momentum indicator RSI is below the 50 mark, indicating a lack of positive short-term momentum. We anticipate that the Nifty will consolidate within a range of 21,950 to 22,370. The optimal strategy for trading in this range-bound market is to buy at the support zone and sell at the resistance level.
Key Resistance: 22,370 - 22,600
Key Support: 21,950 - 21,700
Strategy: Buy on dips till 22,055 for a target of 22,370
Stoploss: 21,950
Jigar S Patel, Senior Manager, Equity Research, Anand Rathi
Nifty is presently navigating within an ascending channel, having recently rebounded from the lower boundary of this channel and maintaining a position above the 22,000 mark. Before an upward movement, Nifty could potentially retrace to approximately 22,175 levels.
Key Resistance: 22,400 - 22,300
Key Support: 22,150
Strategy: Purchase 22,300-call option expiring on May 23 within the Rs 110-115 range, targeting gains at Rs 210. Set stop loss at Rs 61.
Bank Nifty - outlook and positioning
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities
Bank Nifty experienced sideways trading during the weekly expiry day, encountering resistance at the 48,000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48,500. On the downside, support is positioned at 47,200, presenting favorable buying opportunities on dips toward this level.
Key Resistance: 48,000 - 48,160
Key Support: 47,500 - 47,400
Strategy: Initiate a bull call spread strategy above the breakout of 48,000. Buy 48,000 CE and sell 48,500 CE. Expiry: 22 April
Vidnyan Sawant, HOD - Research, GEPL Capital
Bank Nifty reached an all-time high of 49,974.75 before undergoing a correction, finding support near the 50% Fibonacci retracement level. However, the index continues to struggle below its 20-day SMA, currently at 48,165. Additionally, the RSI indicator remains below the 50 mark, signaling a lack of bullish momentum. We expect the index to trade within a range of 46,900-48,300 in the short term.
Key Resistance: 48,300 - 49,250
Key Support: 46,900 - 45,800
Strategy: Buy on dips till 47,200 for a target of 48,300.
Stoploss: 46,900
Jigar S Patel, Senior Manager, Equity Research, Anand Rathi
Bank Nifty is moving within an upward channel, recently rebounding from its lower boundary and holding above the 47,500 threshold. Before any upward momentum, there's a chance of the index retracing towards the 47,500 levels.
Key Resistance: 48,200 - 48,300
Key Support: 47,500
Strategy: Buy the 48,000-call option expiring on May 22 between Rs 220-250, targeting profits at Rs 500 with a stop-loss at Rs 130.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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