Friday cheers took the markets higher, closing in the green up. Markets snapped the losing streak of the last five trading sessions. The Nifty 50 closed 42 points or 0.19% higher at 22,531. Similarly, the BSE Sensex settled 76 points or 0.10% higher at 73,961. Bank Nifty closed 302 points or 0.62% higher at 48,984. Realty and metal stocks pushed the indices higher. Adani Enterprises, Adani Ports, Shriram Finance, Coal India, and Tata Steel were the major gainers in the Nifty 50 on May 31. Also, in the last five days, Nifty 50 has shed 2%.
Following the trend, Nifty Midcap 100 advanced 279 points or 0.54% to settle at 51,706. In the broader market, smallcap and midcap stocks closed in the green.
“The Nifty index is trading around a make or break support zone of 22,400-500 levels (50 Day EMA Support area) and a sharp movement of 2% to 3% can be expected on either side from this zone, preferably on the higher side. As long as Nifty is holding above 22,400-500 levels (+/- 25 points), there is no major sense of panic as of now,” said Tejas Shah, Technical Research at JM Financial & BlinkX.
Nifty’s Technical Side
“The Nifty remained volatile within a narrow range during the day as investors awaited the election results. The highest call writing is visible at 23000, while there is significant put writing at 22500, indicating that the Nifty might oscillate between 22500 and 23000 in the next few days. However, a fall below 22500 might trigger a correction towards 22000,” said Rupak De, Senior Technical Analyst, LKP Securities.
Bank Nifty
“Bank Nifty found support near its 21-day EMA, closing with a bullish candlestick. A recovery in large-cap private bank stocks contributed to keeping the index in the green. The critical support level for Bank Nifty is 48,300, while 49,000 serves as strong resistance. A decisive movement is anticipated once these levels are breached,” said Rupak De, Senior Technical Analyst at LKP Securities.