Market Outlook: Nifty 50 and Sensex Set for a Lower Opening on May 24

Nifty 50, Sensex Today: Expectations for the Indian Stock Market on May 24

The Indian stock market indices, Sensex and Nifty 50, are anticipated to open lower on Friday, influenced by weak global cues. Trends on the Gift Nifty also point to a negative start for the Indian benchmark index, trading around the 22,950 level, which is a discount of nearly 50 points from the Nifty futures’ previous close.

Market Recap: Thursday’s Performance

On Thursday, the domestic equity indices reached record highs, with the Nifty 50 closing above the 22,900 mark. The Sensex surged by 1,196.98 points, or 1.61%, to close at 22,967.65, while the Nifty 50 ended 369.85 points, or 1.64%, higher at 75,418.04.

The Nifty 50 formed a long bullish candlestick pattern on the daily charts, indicating strong buying interest. Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities, noted that the 20-period moving average (MA) remains above the 50-period MA, suggesting a positive crossover that supports a continued near-term uptrend. Additionally, the Nifty is holding above the 20-day and 50-day SMA, which is a positive signal. The 14-day RSI at 68.23 is rising but not yet overbought, which is encouraging for further gains.

Nifty 50 and Bank Nifty Predictions for Today

Nifty 50 Open Interest (OI) Data:

An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,700 level, implying potential support. On the call side, significant OI concentrations are noted at the 23,500 and 24,000 levels, according to Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction:

The Nifty 50 index rallied 1.64% on May 23 to end at a record closing high just below the 23,000 mark. Rupak De, Senior Technical Analyst at LKP Securities, commented that Nifty witnessed a clean breakout above its prolonged consolidation on the daily timeframe, signaling a renewed surge of optimism. The index moved smartly towards 23,000, falling short by just 7 points. The trend appears robust following the formation of a large green candle on the daily chart.

On the higher end, surpassing 23,000, the index might target 23,500 in the short term. On the lower end, support is positioned at 22,800; the strength should remain intact as long as it stays above this level. V.L.A. Ambala, Co-founder of Stock Market Today (SMT), advised investors to stay invested, hedge positions, and diversify portfolios as the market gears up for a potential upside trend, with short-term support shifting to 22,500. She anticipates support for Nifty between 22,850 and 22,770, with resistance between 23,340 and 23,150.

Bank Nifty Prediction:

The Bank Nifty index surged 987 points, or 2.06%, to close at 48,769 on Thursday. According to Rupak De, after several days in a narrow range, Bank Nifty bulls were able to elevate the index above 48,500. A further rally from the current level looks likely, with the index potentially moving towards 49,500 in the short term, provided support at 48,500 remains intact. Immediate resistance for Bank Nifty is placed at 49,000.

Market Insights

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In conclusion, As the markets open today, investors should be prepared for potential volatility and remain informed about key support and resistance levels for Nifty 50 and Bank Nifty. The continuation of positive trends hinges on maintaining critical support levels and leveraging opportunities in midcap and smallcap movements.

Disclaimer: FinBrook provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.