Nifty and Bank Nifty Prediction for Tomorrow 17 May 2023: The Indian equity market has finally given up strength, ending the day in the red. The rallies of the Nifty (18,286.50) and Bank Nifty (43,903.70) were halted due to the news of the deadline for the RBI’s Expected Credit Loss (ECL) norms. Nifty declined 112.35 (-0.61%) points and Bank Nifty erased 168.40 (-0.38%) points, making the day weaker. The renewed concern over PSU banks dragged down the market and restricted the rally in the broader market as well.
The market has been in a consolidation mode with a negative bias since the beginning of today. But the second-half profit booking broke the consolidation zone to the downside. Auto (0.93%), financial services (0.74%), and media (1.38%) were the top sectoral losers on the NSE today. On the other hand, the PSU Bank index was the top gainer on the NSE.
The broader market’s performance was also not good today, where the Nifty Midcap 100 was up by only 0.26 percent. But the Nifty Smallcap 100 Index closed the day marginally in the red, down by 0.02 percent.
Nifty and Bank Nifty Prediction for Tomorrow 17 May 2023
Based on the analysis of current trends and market indicators, I will now provide a forecast for the performance of Nifty and Bank Nifty in the upcoming trading session.
Technical Analysis of Nifty
| Primary Trend of Nifty 50 | UP |
| Nifty 50 Outlook for Tomorrow | Negative |
| Key Area of Nifty 50 | 18330 |
| Upside Range of Nifty 50 | 18395-18550 |
| Downside Range of Nifty 50 | 18220-18050 |
After today’s decline in the Nifty, the chart structure is getting a little distorted. The overall strength of the Nifty is still strong, with the primary trend being up. Tomorrow, the Nifty 50 will be bearish unless it sustains above the key area of 18330.
Taking this as the benchmark for tomorrow, one can initiate buys or sells in the Nifty for given targets. Currently, the immediate major hurdle for Nifty will be 18400, and support will be 18200. Any side breakout will open bigger levels for tomorrow as well.
Nifty 50 Levels for Tomorrow, May 17, 2023
| Levels of NIFTY 50 | Level 1 | Level 2 | Level 3 |
| Nifty 50 Resistance Levels | 18395 | 18500 | 18550 |
| Nifty 50 Support Levels | 18220 | 18150 | 18050 |
Tomorrow Nifty 50 Target: Upside 18395-18550 and Downside 18220-18050
Technical Analysis of Bank Nifty
| Primary Trend of Nifty Bank | UP |
| Nifty Bank Outlook for Tomorrow | Negative |
| Key Area of Nifty Bank | 43980 |
| Upside Range of Nifty Bank | 44100-44400 |
| Downside Range of Nifty Bank | 43750-43400 |
After today’s downward movement in the Bank Nifty, the chart pattern is showing some weakness. However, the overall strength of the Nifty Bank remains intact, and the primary trend is still upward. Looking ahead to tomorrow’s trading session, the Nifty Bank is expected to be bearish unless it manages to sustain above the crucial level of 43980.
Traders can consider initiating buying or selling positions in the Bank Nifty for the given targets. Currently, the immediate resistance for the Bank Nifty is at 44100, while the support level is at 43750. A breakout in either direction will lead to further significant levels as mentioned for tomorrow.
Nifty Bank Levels for Tomorrow, May 17, 2023
| Levels of NIFTY Bank | Level 1 | Level 2 | Level 3 |
| Nifty Bank Resistance Levels | 44100 | 44290 | 44400 |
| Nifty Bank Support Levels | 43750 | 43590 | 43400 |
Tomorrow Nifty Bank Target: Upside 44100-44400 and Downside 43750-43400
Conclusion
The Indian market is eagerly awaiting the clarity of RBI’s ECL norms for PSU banks, which will have a significant impact. As the market approaches new all-time highs, today’s news arrived at a time when the market was seeking a reason to pull back from its peak levels. However, a moderate decline of 1-2% from the current levels will be healthy. This will set the stage for further upward movements in the upcoming trading sessions.
Currently, the Nifty appears to be relatively weaker compared to the Bank Nifty. Though, any upward movement in the Bank Nifty will be a great opportunity to initiate fresh short positions tomorrow. In addition to focusing on the benchmark indices, it is important to note that the broader market rally is still ongoing. Thus, any dip in the market will be a chance to grab high-quality mid-and small-cap stocks and capitalize on their upward potential.
Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.
Chart Credit: Chartink
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