Trade Setup For May 23: Nifty To Consolidate In 24,400-25,000 Range

The NSE Nifty 50, which settled in the red on Thursday after a day of gains, is expected to consolidate in the range of 24,400-25,000 levels in the immediate short term, according to analysts.

In the coming session only a move above Thursday's high of 24,737 will signal positive bias and can lead to retest of the 25,000 levels, as per Bajaj Broking Research. "Key short-term support lies at 24,350-24,400," it added.

The intraday market texture is on the weaker side, but a fresh selloff is possible only after the dismissal of the 24,450 level, according to Shrikant Chouhan, head - equity research, Kotak Securities.

"On the higher side, 24,650–24,750 would be the key resistance zones for short term traders. Above this, a pullback rally could extend up to 24,850-24,900. On the downside, if the market falls below 24,450, it could retest levels of 24,380-24,165," Chouhan said.

The Bank Nifty, another keenly tracked index, has strong support near 54,557 level, according to Hrishikesh Yedve, assistant vice president for technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd. The short-term resistance is placed near 55,700 levels, he added.

FII/DII Activity

Foreign portfolio investors turned net sellers of Indian equities after a day of buying on Thursday, while domestic institutional investors stayed net buyers for the third straight day.

FPIs offloaded stocks worth Rs 5,045.36 crore and domestic institutional investors bought equities worth Rs 3,715 crore, according to the provisional data from the National Stock Exchange.

Global Cues

Asia-Pacific markets were trading higher early morning Friday as investors inflation data from Japan, and producer price data from the South Korea. The Nikkei 225 and KOSPI were trading 0.71% and 0.16% higher as of 6:47 a.m.

On Thursday, Dow Jones Industrial Average flat at 41,859.09, and S&P 500 fell 0.04% at 5,842.01. The Nasdaq Composite rose 0.28% at 18,925.73.

The dollar index was 0.15% down at 99.78 as of 6:50 a.m. The yield on the benchmark 10-year US treasury note was at 4.52%.

The Brent crude July future was trading 0.17% higher at $64.15 a barrel as of 6:51 a.m.

The Gold future was trading 0.19% higher at $3,301.35 an ounce as of 6:52 a.m.

The GIFT Nifty was trading 0.16% or 39.50 points higher at $24,694.50 as of 6:53 a.m.

F&O Action

Nifty May futures down by 0.67% to 24,655 at a premium of 46 points.

Nifty May futures open interest down by 3.13%.

Nifty Options May 29 Expiry: Maximum Call open interest at 26,000 and Maximum Put open interest at 24,000.

Market Recap

The benchmark equity indices closed lower on Thursday after a day's respite amid volatility in the domestic stock markets.

The NSE Nifty 50 settled 203.75 points, or 0.82% lower at 24,609.7 and the BSE Sensex ended 644.44 points, or 0.79% lower at 80.951.99. During the day, the Nifty 50 fell 1.41% to 24,462.4, while the Sensex declined 1.36% to 80,489.92.

Major Stocks In News

• Adani Ports: The company is set to raise up to Rs 6,000 crore via NCDs on a private placement basis for capex and refinancing of existing debt and general corporate purposes.

• Trent, Bharat Electronics: Both stocks will be added to the BSE Sensex, replacing IndusInd Bank and Nestle India, according to the rebalancing announced by the BSE on Thursday. The changes will come into effect on June 23.

• Ola Electric: The board of the Bengaluru-based EV maker approved a proposal to raise up to Rs 1,700 crore by way of term loans, non-convertible debentures or any other debt securities in one or more tranches on a private placement basis.

Currency Market

The Indian rupee fell by 37 paise to close at 86.01 against the US dollar on Thursday, marking its lowest level since April 11. The domestic unit had closed at 85.64 against the greenback on Wednesday.

Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.