Market Analysis for May 27, 2022

Post Market Report & Nifty Chart Analysis

1. Today Nifty Futures opened higher, but from the open price started trading lower. It fell by 200 points before rebounding 300 points to close at 16169. After 3 days, the close is higher than the open.

   

2. Even though Nifty Futures fell towards 15800 several times last week the close was above 16250. Looks like this week as well we are likely to get a close above 16250.

   

3. SGX Nifty is already above 16250.

4. Most sectors ended in the green. PSU Banks rebounded today after taking a hit yesterday. Private Banks & Financial Services continue to do well. Metals & IT rebounded.

   

5. HDFC twins did well for the 3rd straight day. ICICI Bank, TCS & Infosys were the other top contributors to Nifty today.

   

6. India VIX was down by 10% and fell from 25 to 22.7. Good day for Option Sellers.

7. Banknifty Futures was struggling to cross the 34800 to 35000 zone over the last few days. Now it is at 35257. Banknifty Futures also closed the gap formed on May 06.

8. FIIs sold for ₹1597 Crores and DIIs bought for ₹2906 Crores in the Cash Market.

9. FIIs have reduced their short positions on the Index going into the next expiry. Overall they are still short on the Index. However, they continue to add long positions in stock derivatives.

10. Most Global Markets are in green except for some Asian markets. US is in green and trending higher.

    

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.