Nifty and Bank Nifty Prediction for Tomorrow 31 May 2023

Nifty and Bank Nifty Prediction for Tomorrow 31 May 2023: The S&P BSE SENSEX(62,969.13), NIFTY 50(18,633.85), and NIFTY BANK(44,436.35), three important indices ended the day in green on Tuesday. Indian equity market continues its upward momentum for straight four trading sessions in a row. Strong US futures especially a rally in tech stocks boosted the overall sentiment of the market today.

The BSE Sensex stood at 62,969.13, marking an increase of 122.75 points or 0.20%.

Nifty 50 opened at 18,606.65 and reached a high of 18,662.45 before settling at 18,633.85, recording a gain of 35.20 points or 0.19%. The low for the day was 18,575.50.

Nifty Bank started the day at 44,277.35 and saw a high of 44,498.60. It closed at 44,436.35, showing a gain of 124.45 points, or 0.28%. The low point was 44,207.50.

Except for a few traders’ favorite counters, the overall movement of the broader markets was quite muted. The midcap and small-cap 100 indexes of NSE gained marginally by 0.25 percent and 0.22 percent, respectively.

In today’s market, the most important point was that a few popular F&O stocks outperformed the overall market giving nice breakouts on the upside.

Top Gainers and Losers of the Day

ITC(2.35%), HDFC Life(1.72%), Bajaj Finserv(1.13%), Kotak Bank(0.97%), and Bajaj Finance(0.95%) emerged as the top gainers on Nifty 50. But Hindalco(-1.49%), Adani Enterprises(-1.46%), Tata Steel(-1.38%), Tech Mahindra(-1.28%), and Dr Redd’ys Laboratories(-1.03%) witnessed losses and emerged as top losers.

From the broader market, Auropharma(6.25%), RBLBANK(6.02%), HDFCAMC(4.24%), MCX(3.96%) & RAMCOCEM(3.90%) were the top gainers which are in the F&O category. NAUKRI(-3.38%), BALKRISIND(-2.65%), and APOLLOTYRE(-2.12%) were the top three losers from the F&O segment.

Nifty and Bank Nifty Prediction for Tomorrow(31st May 2023)

After an impressive ending to today’s session, market participants anticipate an extended rally tomorrow also. The market sentiment is predominantly positive, and the overall outlook appears robust and upward. Maintaining the Nifty above the crucial level of 18,570 and the Bank Nifty above 44170 is crucial for sustaining this bullish momentum for tomorrow.

Both the charts of Nifty and Bank Nifty appear to be similar which are promising and bullish. So, as long as they sustain above the key levels, we can expect a follow-up buying across the market tomorrow as well.

Technical Analysis of Nifty

After a period of consolidation in the first half, the Nifty rose today above 18630. Therefore, if trading is above 18600 tomorrow, the upward momentum may continue. According to the chart, the Nifty will face immediate resistance between 18670 and 18700. On the downside, the Nifty will find immediate support at 18570–18510, followed by 18460.

So, right now, it would be wise to ride the higher trend while using today’s low of 18,575.50 as a stop loss.

Nifty 50 forecasts for Wednesday (31st May 2023)

Nifty 50 Levels for Wednesday, May 31, 2023

Nifty 50 Target for Tomorrow: Upside 18670-18760 and Downside 18585-18498

Technical Analysis of Bank Nifty

Similar to the Nifty, the Bank Nifty also displayed momentum above 44,400 in the latter half of the day, despite initial weakness. This suggests that if the Bank Nifty continues to trade above 44,400, the upward momentum is likely to persist tomorrow. However, it’s important to note that Bank Nifty may encounter immediate resistance in the range of 44,500 to 44,600, as indicated by the chart.

On the downside, the Bank Nifty has immediate support at 44,150, which corresponds to its previous all-time high. It’s worth mentioning that the Bank Nifty is currently trading in uncharted territory, making new all-time highs on a daily basis. Therefore, it’s difficult to predict the exact top. To navigate this unprecedented bull rally effectively, it is recommended to enjoy the upward momentum while maintaining a stop loss at 44,150 on a closing basis.

Nifty Bank forecasts for Wednesday (31st May 2023)

Nifty Bank Levels for Wednesday, May 31, 2023

Nifty Bank Target for Wednesday: Upside 44550-44850 and Downside 44260-43970

Conclusion

The US stock market futures are indicating a positive start for tomorrow’s session in India, with the exception of Dow Jones, which is mildly negative. The Nasdaq 100 is expected to continue its upward momentum, ready for another strong day. Additionally, the US dollar index has declined and the US 10-year bond yield is showing weakness, creating a bullish global stage.

If the benchmark indices experience any dips, it could be an opportunity to add long positions in the stocks that performed well today. It’s important to note that the overall sentiment and chart patterns are favorable, making shorting a risky strategy unless strict stop losses are in place. Furthermore, the positive performance of traders’ favorite F&O counters today will likely have a positive impact on the broader market sentiment tomorrow.

Please note that all levels of Nifty and Bank Nifty discussed above, are spot prices.

Chart Credit: Chartink

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