NIFTY WEEKLY PREDICTION & TRADING TIPS FOR 23 MAY TO 27 MAY 2022

REUSLT AHEAD

23 MAY  2022 DivisLabs, Sail , Zomato

24 MAY 2022 Balrampur Chini ,Bank of India , Zee India

25 MAY 2022 BPCL , Coal India , Nalco , NMDC,

26 MAY 2022  Cummins, Zeel, JSW Steel ,

27 MAY 2022 BEML, India Cement

28 MAY 2022 M&M , ONGC

WEEKLY RESISTANCE FOR NIFTY: 16400, 16500, 16600

PIVOT POINT: 16250

WEEKLY SUPPORT FOR NIFTY:  16150, 16000, 15800

WEEKLY CHART FOR NIFTY

DAILY RESISTANCE FOR NIFTY: 16300, 16375, 16425

PIVOT POINT: 16225

DAILY SUPPORT FOR NIFTY:  16150, 16050, 15900

DAILY CHART FOR NIFTY

Trading for the week started on a comfortable note despite sluggish global signals. In the first hour, gains reached as high as the 16000 mark. Similar to the recent trend, profit booking took place at higher levels to wipe out any mid-session gains. Although the market recovered slightly thereafter, the overall move was quite choppy to end the day at around 15850 with gains of almost four tenths of a percent. On Tuesday the early morning global trading screen was comfortable and as a result our markets started with a modest upward gap slightly above 15900. However, momentum accelerated throughout the day across the heavyweight areas to send Nifty comfortably above 16250 on a closing basis. Contrary to the last few sessions, the bullish rally should continue and did not give up in the second half. The robust recovery period ended with whopping gains of 2.63% to bring back a bigger smile to the trading community. Tuesday's massive rally was followed by another gap that opened with modest gains on Wednesday. We definitely shrugged when the SGX Nifty indicated a slow start this morning. In the early trades, Nifty extended gains towards 16400 but failed to sustain higher levels. Around the middle of the session, the key indices pared all gains and slipped marginally into the red. Luckily, immediately after mid-session, Nifty pulled back to 16350 with a nifty recovery, again tempting to end the choppy session on a flat note. Thursday open was painful as Nifty opened nearly 300 points lower on the massive overnight sell-off in US bourses. This certainly caught many momentum traders off guard who had continued their longs after Tuesday's sharp bounce. Barring a negligible bounce in the initial trades, the index continued to slow down to test the 15800 level. But fortunately there was no major damage compared to the global screen during the day. Finally, the tragic weekly expiry day ended with a drop of over two and a half percent from the previous close. The bulls were back on Dalal Street on Friday, chasing global gains, as the Sensex closed 1,534 points higher, while the Nifty50 closed at 16266, up 457 points.

NIFTY: A STRONG SUPPORT WILL BE @ 16500; STRONG RESISTANCE LEVEL SEEN @ 15700

After experiencing a sharp decline over the past two weeks, stock markets ended this week on a positive note. However, according to global cues, Indian stock markets have great volatility. Benchmark indices like the Sensex 30 and Nifty 50 posted gains of between 2-3%. Overall market breadth was positive, with gains in mid-cap, small-cap and most key sector indices. The metals sector rebounded strongly after the steep correction of the past few weeks. The BSE IT index was down this week in an otherwise positive market. FIIs continued to sell in India. Markets remained cautious on global growth and inflation expectations. As earnings season moves into its final leg, the focus will be more on the macro data points. Global central banks' monetary tightening amid high inflation will continue to weigh on market sentiment. Technically, after a sharp price correction, the Nifty finally took the support near 15775 and rallied strongly. On weekly charts, the Nifty has reclaimed 16000 and is trading comfortably above the 10-day SMA. The reversal formation is likely to continue if the index manages to trade above 16000-16100 and above that it could rally as high as 16400-16500. Another uptrend could continue, which could take the index as high as 16600. However, below 16200 the uptrend would be vulnerable and the index could reach the 15800-15600 level.

TECHNICALLY SPEAKING

The Nifty has formed Open Bullish Marabozu on a daily timeframe, suggesting bullish momentum for an upcoming session. Additionally, Nifty has been trading in a 15800-16400 range all week, crossing both sides to take another direction. Additionally, Nifty has indicated a close above the 9-day moving average, suggesting that a recovery from lower levels is in sight. However, momentum indicators MACD and Stochastic traded with a positive crossover, reversing from oversold territory on an hourly chart, suggesting a northbound movement in the meter. The Nifty could find strong support around the 16500 level while 16400 could act as an immediate barrier on the upside. On the other hand, Bank sent support at 33000 while resistance stands at 34500.