Market Analysis for May 31, 2022

Post Market Report & Nifty Chart Analysis

1. Today we witnessed a gap-up opening of 130 points in Nifty Futures. Following that, we also witnessed bullish aggression at the open. The price kept inching higher and closed near the day’s high at 16650.

2. Nifty Futures also closed the gap formed on May 06.

3. Last week IndiaVIX was at 25. Now it is below 20. It fell by 7% today and is now at 19.9.

4. All sectoral indices ended in green. Realty, IT and PSU Banks were the top performers.

5. Reliance was up 3.6% and contributed 67 points to the Nifty today. Infosys was by 4.6% and contributed 50 points to the Nifty.

6. Last week we pointed out that there was institutional activity in L&T. We know the reason today. It bagged the order for Chennai Metro Rail Project. For stock-wise institutional activity on a daily basis please check Finvezto Toolkit.

7. US Markets are off today as it is a holiday. The US Futures are down by a bit, but still in the green. Most European and Asian markets in green.

8. FIIs bought for ₹502 Crores in the cash market. They have turned into net buyers after a month. DIIs bought for ₹1524 Crores. They have been net buyers for 2 months straight.

9. FIIs have reduced their short positions on the Index Derivatives and increased their long positions on Stock Derivatives. FIIs are slowly turning bullish. Their Futures positions are also net long.

10. With respect to Nifty Open Interest for the upcoming week, PUTs have been added at 16500 and CALLs were closed at 16500. Hence, 16500 to act as immediate support for this expiry.

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

Positional Trading Analysis for this week (May 30 to June 03, 2022)

• Bullish as long as Nifty Futures closes above 16350 in the Daily Chart. Resistance on the upside being 16451, 16646, 16846. (Marked in Red).

• Bearish only if Nifty Futures closes below 16249 in the Daily Chart. Support on the downside being 16093, 15984, 15887. (Marked in Green).

• We will maintain a Neutral view if Nifty Futures trades between 16249 and 16350. (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.