Market Analysis for May 24, 2022

Post Market Report & Nifty Analysis for May 24, 2022

1. Today we witnessed a neutral opening in Nifty Futures. After the first 30 minutes, the price broke above the open price of the day indicating bullishness. Then we had a rally towards 16400. Aggressive Selling came in at 16400 and Nifty Futures fell 250 points in the second half to close at 16150.

   

   Nifty Futures - 5 min Chart - Today’s Price Action

2. The RBI Governor, in an interview today, said that another round of Interest Rate hikes is on the cards. The next RBI Monetary Policy meeting is between Jun 6-8.

3. Auto & IT did well. Metal Index was down by 8.14%.

   

4. Steel Stocks plunged. Tata Steel and JSW Steel together took away 55 points from Nifty. The Government had hiked export duty on Iron ore and Pellets over the weekend to increase the domestic availability. This decision is aimed at bringing the Steel prices down as Steel plays a key role in nation-building. Hence the crash in Steel Stocks.

   

5. L&T witnessed Institutional Activity today with an upmove of 1.92%. L&T stocks worth 400+ Crores have been taken on delivery.

6. The following stocks continued their good run today. They have gone up consistently over the last 1 month.

   

   Source: Finvezto Toolkit

7. Nifty Futures is trading at a discount of almost 50 points. Nifty May Futures and June Futures are almost trading at the same price.

8. India VIX was up by 1.3% and is at 23.4. It has been hovering around 23 for over a week now.

9. FIIs sold for ₹1951 Crores and DIIs bought for ₹1445 Crores in the Cash market.

10. Although our markets closed lower, the European and US markets are up now. DOW is up by more than 500 points.

    

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

Positional Trading Analysis for this week (May 23 to 27, 2022)

• Bullish only if Nifty Futures closes above 16249 in the Daily Chart. Resistance on the upside being 16350, 16451, 16646. (Marked in Red).

• Bearish only if Nifty Futures closes below 16093 in the Daily Chart. Support on the downside being 15984, 15887, 15734. (Marked in Green).

• We will maintain a Neutral view if Nifty Futures trades between 16093 and 16249. (between the Blue levels).

Please read this article to know more about Key levels.

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