Bearish Sentiment Tests Nifty 50's Support at 23,400, Bank Nifty's 53,200 Threshold

Market Outlook: Bears Reign Supreme Ahead of Key Support Levels

The Indian stock market is bracing for more selling pressure as bears continue to dominate the scene. Weak technical indicators and elevated oil prices, triggered by Donald Trump's warning to Iran, have led to a decline in the market.

On May 15, the Nifty 50 fell by 46 points (0.19 percent) to 23,643, while the Nifty Bank dropped by 419 points (0.77 percent) to 53,710. Market breadth favored the bears, with around 1,914 shares declining against 1,016 advancing shares on the National Stock Exchange.

Nifty 50 and Nifty Bank Outlook

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Experts believe that the 23,500-23,400 zone will act as a crucial support area for the Nifty 50. A break below this range could drag the index toward 23,250. Meanwhile, the Nifty Bank may decline toward the 52,800-52,700 range if it breaks below 53,200, which is close to the previous week's low.

Resistance and Support Levels

The Nifty 50 has multiple resistance levels around the 23,800-23,900 zone, stemming from the 9-day and 20-day EMAs, as well as the earlier support level of 23,800. The index has consistently traded below all major exponential moving averages, which are sloping downward.

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Strategies for Nifty 50 and Nifty Bank

Aditya Thukral, Founder & Analyst of AT Research & Risk Managers, suggests selling Nifty Futures on a rise toward 23,800 with a stop-loss at 23,900, targeting 23,360. Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, recommends selling Nifty Futures around 23,750 with a stop-loss at 23,850, targeting 23,500-23,350.

Anshul Jain, Head of Research at Lakshmishree Investments, suggests buying Nifty Futures above 23,800 only, with a stop-loss below 23,750 for a target of 24,000.

Bank Nifty Outlook and Positioning

The Nifty Bank has ended its rally near previous support levels, which have now turned into resistances. Positioning in the derivatives segment for the banking index remained bearish, with long unwinding and short build-up being observed.

Strategies for Bank Nifty

Aditya Thukral, Founder & Analyst of AT Research & Risk Managers, suggests selling Bank Nifty Futures on a rise toward 54,200 with a stop-loss at 54,500, targeting 53,600. Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities, recommends selling Bank Nifty Futures around 54,200 with a stop-loss at 54,500, targeting 53,500-53,250.

Anshul Jain, Head of Research at Lakshmishree Investments, suggests selling Bank Nifty Futures only below 53,191 with a stop-loss above 53,550, targeting 51,500.