Trade Setup For May 21: Nifty 50 Sees Immediate Support Near 24,500 Levels

The NSE Nifty 50 closed 261.55 points or 1.05% lower at 24,683.9 and the BSE Sensex ended 872.98 points or 1.06% down at 81,186.44.(Photo Source: Freepik)

The NSE Nifty 50, which shed over 260 points on Tuesday, faces immediate support at around 24,500 levels, according to stock market analysts.

The frontline index closed below its five-day exponential moving average for the first time since May 8, suggesting a shift to profit-booking, said Devarsh Vakil, head of prime research, HDFC Securities.

The support levels lie at "24,494 and 24,378", while resistance is expected in the 24,800-24,900 range, he noted.

"The next major support for the index is placed near 24,390, where the 21-Day Exponential Moving Average is positioned. On the upside, immediate resistance is seen around 24,850," according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

"As long as the index trades below this level, traders are advised to adopt a stock-specific approach and keep on booking profits on bounce," he said.

Bank Nifty, another keenly tracked index, is expected to consolidate in the range of 53,500-56,000, as per Bajaj Broking Research. The key support zone likes in the range of 53,000-53,500, it added.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the second straight day on Tuesday as they offloaded stocks worth Rs 10,016.1 crore, the highest since Feb. 28, according to the provisional data from the National Stock Exchange.

Domestic institutional investors turned net buyers after a day of selling, as they mopped up equities worth Rs 6,738.39 crore, the data showed.

Global Cues

Most markets in Asia-Pacific advanced Wednesday. The S&P ASX 200 and KOSPI were trading 0.67% and 1.14% higher, respectively.

On Tuesday, the Dow Jones Industrial Average fell 0.27% at 42,677.24. S&P 500 fell 0.39% at 5,940.46. Nasdaq Composite fell 0.38% at 19,142.71.

The dollar Index at 99.72. The U.S. 10-year bond yield at 4.48%. Brent crude rose 1.42% at $66.31 per barrel. The Gold futures was trading 0.33% higher at $3,294.55 an ounce as of 6:50 a.m.

The GIFT nifty was trading flat at 24,804.50 as of 6:51 a.m.

F&O Action

Nifty May futures down by 0.78% to 24,782 at a premium of 99 points.

Nifty May futures open interest down by 5.09%.

Nifty Options May 22 Expiry: Maximum Call open interest at 25,000 and Maximum Put open interest at 24,000.

Market Recap

The benchmark equity indices closed lower for the third consecutive session on Tuesday amid volatility in the domestic stock markets.

The NSE Nifty 50 closed 261.55 points or 1.05% lower at 24,683.9 and the BSE Sensex ended 872.98 points or 1.06% down at 81,186.44. During the day, the Nifty fell 1.11% to 24,669.7, while the Sensex declined 1.1% to 81,153.7.

Major Stocks In News

State Bank of India: The company approved raising up to $3 billion via foreign currency bonds in multiple tranches.
Astra Microwave Products: The company issued convertible warrants worth Rs 174 crore on preferential basis.
Coal India: The company informed the exchanges that activities related to listing of Bharat Coking Coal Ltd (BCCL) and Central Mine Planning and Design Institute (CMPDI), its wholly owned subsidiaries, are in progress.
Ugro Capital: The company approved raising up to Rs 400 crore via rights issue and Rs 914 crore via convertible bonds.
Adani Green: Promoter Ardour Investment Holding Ltd. exercised and converted nearly 19 lakh warrants into an equal number of equities worth Rs 209 crore.