Nifty Stance Slightly Bullish
Nifty’s range-bound journey continues. Nifty was trapped between the support 23793 and the resistance 24335 for 33 days, i.e. 8th April to 11th May. And for the last 11 days, it has been stuck between support at 23357 and resistance at 23793. Like every consolidation, this one would break as well, but it would require a strong trigger.
This week started with a gap-down opening on 18th May, right at the support level of 23357, which was followed by a strong retracement for a flattish close. Tuesday, we started flat, but gave away gains in the afternoon. On Wednesday, we tried to retest the 23357 support again, but we closed strong. Thursday, we opened above the resistance level of 23793, but we gave up all those gains. On Friday, we tried to break through the resistance of 23793 again, but failed. Overall, we only managed to gain 75pts (~ 0.32%) this week. The zig-zag movement, but with no real gains or losses is indicative of a flattish market.
If you look at the chart, you can see multiple crossovers between the blue and green EMAs (3 this week). Since the ADX 1D timeframe remains below 20 pts, our stance is flattish with a minor bullish bias.
Important Things to Watch for the Next Week
We expect next week’s trading to be totally dependent on the US-Iran peace deal; until then, the range-bound trade may continue.
Meanwhile, the USDINR hit an all-time high of 96.96 on Wednesday and has since cooled off by 1.32%. This was after the RBI stepped in to sell USD at massive volumes. Speculations of an interim rate hike were also doing the rounds.
This is how the Indian Rupee has performed against the Pakistani Rupee since 3rd July 2025. Our currency has depreciated by 12.05% against the US dollar, whereas the PKR has appreciated by 1.98%. The Indian currency is underperforming the Pakistani currency by ~ 14%.
Note: The technical analysis indicator mentioned above is for educational purposes only and not a guarantee that the trade could end up in profits. Investments in the securities market are subject to market risks, including the potential loss of principal. Past performance does not guarantee future results. Information provided is for educational purposes only and should not be considered financial advice. Investors should read all related documents carefully and consult a certified advisor before investing. Registration granted by SEBI and Enlistment with RAASB/BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The investor is requested to take into consideration all the risk factors before actually trading in stocks or derivatives. The SEBI RIA license INA000021757 is for Balachandran RV
Nifty’s range-bound journey continues. Nifty was trapped between the support 23793 and the resistance 24335 for 33 days, i.e. 8th April to 11th May. And for the last 11 days, it has been stuck between support at 23357 and resistance at 23793. Like every consolidation, this one would break as well, but it would require a strong trigger.
This week started with a gap-down opening on 18th May, right at the support level of 23357, which was followed by a strong retracement for a flattish close. Tuesday, we started flat, but gave away gains in the afternoon. On Wednesday, we tried to retest the 23357 support again, but we closed strong. Thursday, we opened above the resistance level of 23793, but we gave up all those gains. On Friday, we tried to break through the resistance of 23793 again, but failed. Overall, we only managed to gain 75pts (~ 0.32%) this week. The zig-zag movement, but with no real gains or losses is indicative of a flattish market.
If you look at the chart, you can see multiple crossovers between the blue and green EMAs (3 this week). Since the ADX 1D timeframe remains below 20 pts, our stance is flattish with a minor bullish bias.
Important Things to Watch for the Next Week
- Results of the following major companies are expected over the next week. NTPC, Divis Labs, JK Cement, ABB Power, ONGC, Cummins, Ashok Leyland, and Asian Paints.
- We are expecting the Industrial Production data, FX reserves, and Federal Fiscal Deficit (March).
- 25th May 2026 is a holiday for the US market due to Memorial Day. Other global events to watch out for are: CB Consumer Confidence (US), ECB Financial Stability Review (Euro), Core Personal Consumption Expenditure (PCE) Index (US), Q1 GDP (US), Initial Jobless claims, and Chicago PMI (US).
- 28th May 2026 is a holiday for Bakri Id, and the Sensex expiry will be on Wednesday, 27th May.
- If Nifty starts falling, the important support levels are 23357, 22781 and 22519. If Nifty starts rallying, the important resistance levels are 23793, 23925, and 24192.
We expect next week’s trading to be totally dependent on the US-Iran peace deal; until then, the range-bound trade may continue.
Meanwhile, the USDINR hit an all-time high of 96.96 on Wednesday and has since cooled off by 1.32%. This was after the RBI stepped in to sell USD at massive volumes. Speculations of an interim rate hike were also doing the rounds.
This is how the Indian Rupee has performed against the Pakistani Rupee since 3rd July 2025. Our currency has depreciated by 12.05% against the US dollar, whereas the PKR has appreciated by 1.98%. The Indian currency is underperforming the Pakistani currency by ~ 14%.
Note: The technical analysis indicator mentioned above is for educational purposes only and not a guarantee that the trade could end up in profits. Investments in the securities market are subject to market risks, including the potential loss of principal. Past performance does not guarantee future results. Information provided is for educational purposes only and should not be considered financial advice. Investors should read all related documents carefully and consult a certified advisor before investing. Registration granted by SEBI and Enlistment with RAASB/BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The investor is requested to take into consideration all the risk factors before actually trading in stocks or derivatives. The SEBI RIA license INA000021757 is for Balachandran RV
@viswaram
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
@viswaram
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.