Market Cues: Nifty under heavy pressure at higher levels; find out the range in which the index will trade today and the mood of the PCR Nifty-Bank Nifty Trading Plan: Resistance of 23,800 defeated the bulls, understand today’s support and resistance levels from pivot points.

Amid the ongoing tug of war between bulls and bears in the Indian Stock Market, heavy selling (profit booking) pressure was seen at the upper levels yesterday i.e. on 21st May. All attempts by the Nifty 50 to get back above the short-term moving average and stay there have been a complete failure. The index lost all the early gains it had made during its trading session and finally closed in the red.

Market giants bulls on closing basis 23,800 Failed to hold the very important and psychological resistance level of . As a result, the index slipped below all its important moving averages and is currently 23,300 to 23,800 It seems to be trading stuck in a very narrow range. However, the positive thing is that the technical pattern of ‘Higher Low’ on the daily chart is still completely intact. Market experts clearly say that for Nifty to gain new wings towards the level of 24,000, first of all Crossing the zone of 23,800–23,900 Must give a strong breakout. Till then, the market will continue to trade in a range-bound manner, with a strong support on the downside at Rs 23,400. Bears will become fully active in the market only after this support is broken.

Pivot Points, Fibonacci Levels and key statistics of derivatives to spot profitable trades in intraday trading are given below:

1. Nifty 50 Verdict

• Resistance based on pivot point: ₹23,804, ₹23,866 and ₹23,967

• Support based on pivot point: ₹23,603, ₹23,541 and ₹23,440

Special Formation and Technical Chart:

Yesterday Nifty 50 formed a long red candle (Bearish Candle) on the daily timeframe, which clearly shows heavy supply and selling pressure at higher levels. On an index closing basis all its major exponential moving averages (10, 20, 50, 100 and 200-day EMA) is trading below Rs. Moreover, the index has also slipped below the 38.2% Fibonacci retracement level of the April rally.

momentum indicator RSI 45.55 has remained sideways (stable) at the level of , while the trend indicator MACD Still in bearish zone below zero and signal lines. However, it is a matter of relief that the red histogram bars on the daily chart have been seen shrinking (lowering) for the sixth consecutive trading session. This is an indication that even though the market remains weak, the aggressive momentum of the bears is gradually weakening.

Trading Strategy: Market experts believe that taking any positional trade (holding overnight) in this uncertain market can be like a big gamble. Therefore, traders should focus only on ‘Intraday Strategy’ (scalping with stop loss) at this time.

2. Bank Nifty (Nifty Bank Outlook)

• Resistance based on pivot points: ₹53,932, ₹54,157 and ₹54,521

• Support based on pivot points: ₹53,204, ₹52,979 and ₹52,615

• Resistance based on Fibonacci retracement: ₹54,422, ₹55,809

• Support based on Fibonacci retracement: ₹52,798, ₹51,532

Special Formation and Technical Chart:

The price action of Bank Nifty also seemed to follow the footsteps of Nifty 50. This has formed a bearish candle on the daily chart, with very small shadows (wicks) above and below it. This formation confirms continuous profit booking at upper levels.

The banking index was unable to surpass the 50% Fibonacci retracement level of the April rally on a closing basis and remains below all its short- and long-term moving averages. RSI 40.53 But it is absolutely flat, and MACD Has kept its ‘Sail Crossover’ active. However, like Nifty, here too the red histogram bars are shrinking for the fourth consecutive session, which indicates that there is a bearish environment, but the intense selling pressure now seems to be gradually subsiding.

3. Market Health Indicators

India VIX (Volatility Index)

A measure of market uncertainty and volatility India VIX fell by 3.35 per cent to 17.82 yesterday for the third consecutive session. It remains below the short and medium-term moving averages, which is a good news for bulls. However, for stability and permanent bullish trend to return to the market, it is very important that the VIX cools off and goes well below the psychological mark of 17.

Put Call Ratio (PCR)

Nifty shows the mood and sentiment of the market The Put-Call Ratio (PCR) has come down to the level of 1.00 on May 21.which was at 1.24 in its previous season. As per the rules of derivatives, PCR falling to level 1 indicates neutral-to-positive sentiment. Generally, PCR going above 0.7 or crossing 1 is considered a bullish mood, while falling below 0.7 or towards 0.5 confirms bearish mood.

4. Stocks covered under F&O ban

Only those companies are included in the Ban List under the Futures and Options (F&O) segment, whose total open interest in derivative contracts crosses 95 per cent of the Market Wide Position Limit (MWPL).

• Newly included stocks in F&O ban: There are no new stocks added for today’s session.

• Stocks already included in F&O ban: Kaynes Technology India and SAIL (SAIL – Steel Authority of India Limited). No new positions will be allowed in these stocks today, only old positions can be squared off.

• Stocks removed from F&O ban: No stock has been excluded from today’s list.