Market Analysis for May 26, 2022

Post Market Report & Nifty Chart Analysis

1. Today Nifty Futures opened higher at 16168. But, the price dropped below the open within the first half-hour and the Bears took control. From there, we witnessed a fall of almost 150 points and Nifty Futures just closed above 16000. This is the third straight day where the close has been below the open.

   

   Nifty Futures - 1 Day Chart - Today’s price action

2. Most sectors ended in red. IT and Realty were the worst hit. In fact, both IT and Realty have dropped by 20% over the last 6 months. Not just the worst performing sectors today, but over the last 6 months as well.

   

3. Private Banks and Financial Services have been showing strength over the past 1 week. But, Banknifty is failing to close above 34350. We will turn bullish if we see a close above 34350.

4. HDFC Twins did well for the second straight day.

5. TCS and Infosys pulled the Nifty down by 42 points today.

   

6. A few days back, Ultratech Cement shares fell post the acquisition of Ambuja and ACC by Adani. Today, Asian Paints fell 8% after Aditya Birla Group announced the CAPEX expansion plans of Grasim.

7. FIIs sold for ₹1803 Crores and DIIs bought for ₹2229 Crores.

8. FIIs have added short positions on the Index today. Overall they are still short. But, they are less bearish compared to last week.

9. Most Global markets are in Green. US is in green now. India has underperformed.

   

10. Minutes of the Federal Reserve meeting will be released today. Need to see how the US market responds to it.

11. IndiaVIX was down by 1.4% today despite the fall. However, it is still hovering at 25 which is high.

12. Tomorrow is the weekly expiry. Significant CALLs have been added at 16200 and PUTs were closed at 16000. Market Participants are Bearish.

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 as long as 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.