Nifty and Bank Nifty Prediction for Monday 29 May 2023: The Indian stock market showed resilience and ended the week on a high note with the Sensex reaching 62,500 and the Nifty completing the week at 18,499.35. Despite widespread worries over the US debt ceiling, investors maintained their positive outlook. Chipmaker Nvidia’s overly bullish sales forecast caused the US stock market to rise for two straight days, with Nasdaq rising by about 5%.
Following the strong performance of US stocks, the benchmark indexes for the Indian equity market started the day with mild positive but at the end of the day gained 1% on Friday. The fear of U.S. debt ceiling negotiations seems to be a non-event for the time being after the majority of companies posted better-than-quarter results.
Stock Market Movement on Friday
The BSE 30-share Sensex rose by 629.07 points to close at 62,501.69 for the week. The NSE Nifty 50 surged by 178 points and closed at 18,499.35. The Nifty Bank rose 336.60 points or registered a gain of 0.77 percent. All 15 Nifty broad sectoral indices ended the week with gains.
In yesterday’s session, all sectors experienced gains, with IT, FMCG, Pharma, Media, Metal, Realty and PSU Bank gaining more than one percent. Media was the top sectoral gainer with gains of 2.24 percent on the NSE. Nifty Oil & Gas sector was lowest gainer on the NSE with the gains of only 0.51 percent on Friday.
Nifty midcap 100 gained 0.81% while small cap 100 surged 0.53% which are relatively muted than the rally of benchmarks.
Reliance Industries, Sun Pharma, Hindalco, and HUL were among the top gainers on the Nifty, with each stock surging more than two percent. HCL Tech, Divi’s Lab, and Wipro were also prominent gainers. On the other hand, ONGC witnessed a decline of more than one percent. It emerged as the biggest laggard, followed by Grasim, which shed 0.9 percent.
Nifty and Bank Nifty Prediction for Monday 29 May 2023
Following a stunning start to the June F&O expiry, market participants are also anticipating an extended rally on Monday. The overall outlook will continue to be robust and upward as long as the Nifty remains above 18460 and the Bank Nifty remains above 43900. Though Nifty’s chart structure seems to be extremely good and clear, Bank Nifty is approaching a zone of multiple supplies.
Technical Analysis of Nifty
The Nifty’s chart is undoubtedly noteworthy because it has come out of the consolidation zone today and entered new territory. In contrast to Bank Nifty, Nifty has been on an upward trajectory lately. The Nifty could therefore continue gaining ground above 18500 next week. The immediate resistance for the Nifty will be at 18580-18600 followed by 18700. On the downside the immediate support for the Nifty will be at 18458-18450 followed by 18300.
Right now, it would be prudent to ride the upward trend to the upside targets until the stop loss is reached. It’s easy to take long trades in Nifty by setting your stop loss at the breakout range of 18458–18450 for Monday.
| Primary Trend of Nifty 50 | UP |
| Nifty 50 Outlook for Monday | Bullish |
| Key Area of Nifty 50 | 18450-18460 |
| Upside Range of Nifty 50 | 18560-18736 |
| Downside Range of Nifty 50 | 18385-17210 |
Nifty 50 forecasts for Monday (29th May 2023)
Nifty 50 Levels for Monday, May 29, 2023
| Levels of NIFTY 50 | Level 1 | Level 2 | Level 3 |
| Nifty 50 Resistance Levels | 18560.88 | 18622.42 | 18736.28 |
| Nifty 50 Support Levels | 18385.48 | 18271.62 | 18210.08 |
Monday Nifty 50 Target: Upside 18560-18736 and Downside 18385-18210
Technical Analysis of Bank Nifty
The strong supply region between 44100 and 44150 must be broken and maintained for Bank Nifty to see a new high. In the past, Bank Nifty made a few unsuccessful attempts to break through this zone and reach new highs. Therefore, it will be crucial for Bank Nifty to break through that level on Monday in order to set a new high. If not, several rejections would again put selling pressure on that zone.
The Bank Nifty’s all-time high, 44151.7, will act as its immediate resistance at the moment. By breaking through here, the index will likely rise by another 500–800 points. On the downside, 43800 will provide the Bank Nifty with immediate support, followed by 43600 and 43400.
Any reversal towards 43800 will be an excellent opportunity to add to long positions in Bank Nifty. Therefore, the strategy should be to add fresh longs above the prior high or buy on dips as previously suggested.
| Primary Trend of Nifty Bank | UP |
| Nifty Bank Outlook for Monday | Bullish |
| Key Area of Nifty Bank | 43820-43900 |
| Upside Range of Nifty Bank | 44194-44673 |
| Downside Range of Nifty Bank | 43715-43236 |
NIFTY Bank forecasts for Monday (29th May 2023)
Nifty Bank Levels for Monday, May 29, 2023
| Levels of NIFTY Bank | Level 1 | Level 2 | Level 3 |
| Nifty Bank Resistance Levels | 44194.13 | 44370.27 | 44672.93 |
| Nifty Bank Support Levels | 43715.33 | 43412.67 | 43236.53 |
Monday Nifty Bank Target : Upside 44194-44673 and Downside 43715-43236
Global Market Update News
On Friday, the U.S. stock market had a big rally because traders became more hopeful that lawmakers would make a deal to increase the U.S. debt ceiling. This is important because it would avoid a very bad situation where the U.S. could not pay its debts. This made investors feel more confident, and as a result, the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all went up a lot.
The technology and consumer discretionary sectors did particularly well. Even though there was news about inflation went up in April more than expected. But most people in the market focused on the good news about the debt ceiling negotiations.
The Dow Jones Industrial Average went up by around 329 points, or 1%, and ended at 33,093.34. The S&P 500 also went up, gaining 1.3% and closing at 4,205.45. The Nasdaq Composite did even better, going up by 2.19% and reaching 12,975.69. Two companies, Intel and American Express, were very important in making the Dow go up. They had big gains of 5.8% and 4%. The technology and consumer discretionary sectors of the S&P 500 also did really well, going up more than 2%.
Conclusion
After analyzing the charts of the Nifty and Bank Nifty, it appears that there is a higher chance of another positive day on Monday. However, we need to consider a few important factors. The leading indicators and PUT-CALL ratio suggest that the market might become overbought on Monday.
Specifically, indicators like RSI and stochastic show a divergence when looking at the hourly timeframe. Despite this caution, the optimism from foreign institutional investors (FIIs) and the positive sentiment in global equity markets indicate that Indian benchmarks may continue their upward trend on Monday.
The best course of action would be to take advantage of buying chances during dips or breakout rallies while also keeping proper stop losses in place. As important as it is to participate in the rally, it is also crucial to take precautions against probable pullbacks from the highs.
Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.
Chart Credit: Chartink
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