Market Analysis for May 17, 2022

Post Market Report & Nifty Chart Analysis

1. After 10 days, we have a positive close in Nifty Futures. That is, the close is above the previous day’s close.

2. Nifty Futures is failing to close above 16000. In fact, it hasn’t closed above 15850 over the last three trading days. But, the good thing is that it has formed higher lows over the last 3 trading days. We will wait for a close above 15930 to go bullish or a close below 15734 to go bearish. Currently, we maintain a range-bound view.

   

   Nifty Futures - 1 Day Chart - Last 3 trading days

3. Despite a positive close today, the India VIX didn’t fall. It shot up 4.5 % and is now at 24.5.

4. Banks, especially PSU Banks rebounded heavily today. Auto Index was up 2.27%. IT continued its downfall from last week falling 0.75% today.

   

   Source: Finvezto Toolkit

5. Bajaj Finance and the HDFC Twins were the top contributors to Nifty today.

   

   Source: Finvezto Toolkit

6. FIIs sold for ₹1,788.93 Crores and DIIs bought for ₹1,428.39 Crores in the cash market.

7. FIIs reduced their short positions in Index Derivatives. Overall they are still short in Index Derivatives. They added to their existing long positions in the Stock Derivatives segment.

8. With respect to Nifty Open Interest, CALLs were added at 15900, 16000 and PUTs were added at 15700, 15800. Market participants are expecting Nifty to trade between 15700 to 16000 with respect to the upcoming expiry as per the current OI build-up.

9. Adani Group to acquire Ambuja Cements & ACC from Holcim for $10.5bn to cement its presence in the Cements space. Market leader Ultratech cement falls 2.5% following this announcement.

10. Kotak Mahindra Bank witnessed a spike in Institutional Activity with the Delivery amount being ₹281 Crores. Kotak has consolidated between 1700 to 1800 over the last 3 months. Maybe it is ready for a move. Let’s see.

11. China’s Industrial Output data was released and it fell by 2.9%. Retail sales was also down owing to the recent lockdowns. Shanghai Index was down today.

12. European Markets are mixed; US Markets are in red. Mixed Global Cues.

    

13. LIC IPO to list tomorrow.

Let’s now move on to the charts & price action.

Positional Trading Analysis for this week (May 16 to 20, 2022)

• Bullish only if the Nifty Futures closes above 15930 in the Daily Chart. Resistance on the upside being 16034, 16159, 16234. (Marked in Red).

• Bearish if Nifty Futures closes below 15734 in the Daily Chart. Support on the downside being 15516, 15415, 15266. (Marked in Green).

• We will maintain a Neutral view if Nifty Futures trades between 15734 & 15930 (between the Blue levels).

Please read this article to know more about Key levels.

Disclaimer: The analysis is for educational & informational purposes only. Please consult your financial advisor before taking any trading/investing decisions.