Trade Setup For May 15: Nifty Faces Resistance Close To 25,000

Nifty 50 ended 0.36% higher at 24,666.90 and Sensex closed 0.22% up at 81,330.56 on Friday. (Photo source: Freepik)

The NSE Nifty 50, which resumed gains on Wednesday after a one-day blip, faces resistance close to the 25,000 levels, according to stock market analysts.

The bullish trend is well intact for Nifty as it has been holding above all key moving averages, according to Nandish Shah, senior derivative and technical research analyst, HDFC Securities.

"On the downside, strong supports for Nifty are placed at 24,500 and 24,378, while on the upsides 24,850 and 24,975 could offer resistance," he said.

Bajaj Broking Research, in a note, indicated the possibility of the index breaching those levels and rising up to 25,200-25,300 levels. "Key short term support lies in the Monday gap-up zone 24,200-24,000, which coincides with a significant retracement level," it added.

Bank Nifty, another keenly tracked index, could head towards 56,400 levels in the short-term, the brokerage said. The support zone is in the range of 54,500-54000, it noted.

FII/DII Action

Overseas investors turned net buyers of Indian equities on Wednesday after a day of selling, while domestic institutional investors remained net buyers for the fourth session.

Foreign portfolio investors mopped up equities worth Rs 931.8 crore and domestic institutional investors bought equities worth Rs 316.3 crore, according to provisional data from the National Stock Exchange.

Global Cues

Asian markets were trading lower Thursday morning as investors await for more developments on trade talks between US and partner countries. The Nikkei 225 was trading 0.91% down at 37,775.00, and the S&P ASX was 0.09% down at 2,272.40 as of 6:53 a.m.

On Wednesday, the Dow Jones Industrial Average settled 0.21% down, and S&P 500 ended 0.10% up. The Nasdaq Composite ended 0.72% higher.

The dollar index was 0.18% down at 100.86 as of 6:56 a.m. Gold future was 0.06% higher at 3,189.94. The brent crude was trading 1.06% down at $65.08 a barrel.

The GIFT Nifty was trading 0.04% or 9 points down at 24,758.50 as of 6:57 a.m.

F&O Action

Nifty May Futures up by 0.36% to 24,728 at a premium of 62 points.

Nifty May futures open interest down by 5%.

Nifty Options May 15 Expiry: Maximum call open interest at 25,000 and maximum put open interest at 24,000.

Put-Call ratio at 0.65, with highest change in put open interest at 25,000.

Market Recap

India's benchmark indices ended the day with gains on Wednesday. Nifty 50 ended 0.36% higher at 24,666.90 and BSE Sensex closed 0.22% up at 81,330.56.

The close with gains marked a resumption in the rally after one-day blip on Tuesday, when both the frontline indices ended with losses.

Those losses came after the markets climbed nearly 4% higher on Monday, followed by easing tensions between India and Pakistan and encouraging signals from the ongoing US-China trade talks.

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Currency Market

The Indian rupee ended higher for third session in a row against the US dollar on Wednesday, following a series of positive developments in global trade landscape and domestic matters. The domestic unit settled seven paise stronger at 85.28 against the greenback.