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The domestic market failed to maintain recovery mode as it awaited the release of Q4 GDP data. GDP is expected to register a slower growth rate of 4.0-4.2% as consumer spending and investment have been hit by rising inflation. A rise in oil prices due to the EU ban on Russian oil imports would act as a headwind in taming global inflation. Changes in central bank policies would be an important factor to monitor in the coming days. Benchmark indices closed lower on the last day of May, with the Sensex falling 359 points, to 55566 and the Nifty falling 77 points, at 16584. Financials and IT stocks dragged the indices lower, although gains in metal stocks provided some support. On the global front, Asian markets traded mostly in the green after being silent from Wall Street overnight due to a bank holiday, amid signs of easing of COVID-19 restrictions in Beijing and Shanghai and announcements of more stimulus measures in China reinforced optimism about growth in the world's second largest economy and helped underpin sentiment. European markets traded mostly in the red as attention shifted to inflation and rate hikes. Nifty shed afternoon gains on May 31 amid bulky trading on the NSE on MSCI rebalancing trades. Nifty opened the gap on the downside, rallied to post a daily gain at 2:00 p.m. and fell again to close near the daily low. Among sectors, real estate and metals gained the most, while power and banks fell the most. Smallcap and midcap indices ended slightly positive, outperforming the Nifty. Profit bookings higher dragged the benchmark indices in an otherwise clueless market. As corporate earnings season draws to a close, traders have begun looking for new leads to drive the market and there is also a lot of portfolio rebalancing taking place. Reality and the media continued the positive momentum while banking and energy stocks posted profit bookings at higher levels. Technically, a double top formation on intraday charts and a doji candlestick formation on daily charts suggest further weakness from current levels. Nifty remained volatile during the day before closing around the middle of the range. On the top end, it found resistance at the 50-EMA on the daily timeframe. Going forward, the trend could remain choppy as long as the index stays below 16750. On the lower end, support is visible at 16500. On the technical front, the key resistance levels for Nifty are 16800 and on the downside, 16300 can act as strong support. The key resistance and support levels for Bank Nifty are 36,000 and 35,000, respectively. 16670-16650 band on the Nifty is proving to be a tough drag. A break of 16510 could lead to a sharper correction down. Q4 GDP figures expected out of India tonight will impact Indian markets on June 1st.

Resistance: 16650, 16750, 16850

Support: 16550, 16450, 16350