Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 31
Sensex plunged 617.30 points to close at 73,885.60, while the Nifty 50 settled 216.05 points, or 0.95%, lower at 22,488.65.Nifty 50 formed a bearish candlestick pattern with upper and lower shadows on the daily timeframe.Also Read: Indian stock market: 9 key things that changed for market overnight - Gift Nifty, US GDP, jobless claims to China PMI“On the daily chart, the uptrend has weakened. Thursday’s negative closing has led to the Nifty closing below the previous swing high of 22,795.
14-day RSI at 51.1 is falling and remains below its 9 day EMA. This indicates that momentum is weakening.
Nifty nevertheless continues to hold above the 20 and 50 day SMA," said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.While the Nifty has corrected further, it has bounced back from close to the 50 day SMA. According to Gangadharan, this opens the possibility of a further bounce back in the coming sessions.
“Nifty would need to cross the immediate resistance of 22,706 for the bulls to gain an upper hand. Crucial supports to watch for resumption of weakness are at 22,417 - 22,387.
Markets are likely to be volatile in the coming sessions as we approach the election result announcement," he added.Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 31Here’s what to expect from Nifty 50 and Bank Nifty today:According to the Nifty Open Interest (OI) data, on the call side, the highest OI is observed at the 23,000 strike price followed by the 23,500 strike price. On the put side, the highest OI is at the 22,000 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.Also Read: Option sellers baking in 8% swing in Nifty on 4 JuneThe Nifty 50 index closed with a loss
. Read more on livemint.com
