Nifty 50 and Bank Nifty Eye Consolidation Breakout, Possible Upswing Towards 20-DEMA

Nifty 50 and Bank Nifty: Consolidation Continues

The Indian stock market witnessed a mixed trading session on May 20, with the Nifty 50 rising 41 points (0.17 percent) to close at 23,659, while the Bank Nifty gained 153 points (0.29 percent) to settle at 53,562. Market breadth slightly favored the bulls, as around 1,497 shares advanced against 1,432 declining shares on the National Stock Exchange.

Nifty 50 Oscillating within a Narrow Range

The Nifty 50 has been oscillating within a narrow range of 522 points (23,839–23,317) over the last five trading sessions, reflecting a clear phase of consolidation. The index has consistently opened with either a gap-up or gap-down, leaving limited opportunities for meaningful intraday price development and thereby restricting trading scope for short-term participants.

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Nifty 50: Key Levels to Watch

Going forward, we expect the index to continue its sideways trajectory in the near term, unless a decisive breakout occurs. In terms of key levels, the 23,800–23,850 zone is likely to act as an immediate and strong resistance, while the 23,350–23,300 zone should provide crucial support on the downside.

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Bank Nifty: Consolidation Continues

The banking benchmark index Bank Nifty has also been trading within a narrow range over the past three sessions, indicating a phase of consolidation. The index is currently attempting to form a base near the 61.8 percent Fibonacci retracement level of its previous upmove (49,954–57,456), suggesting some support emerging at lower levels.

Expert Views

• Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities: Buy Nifty Futures on dips between 23,740-23,810, with a stop-loss of 23,650, targeting 24,060.
• Rupak De, Senior Technical Analyst at LKP Securities: Buy Nifty May 23,400PE at Rs 92, with a stop-loss of Rs 69, targeting Rs 140.
• Vaishali Patel, Deputy Manager - Research- Technical Department at Jainam Broking: Buy Nifty Futures above 23,850-23,800, with a stop-loss of 23,680, targeting 24,115.

Bank Nifty: Key Levels to Watch

Going ahead, the 52,700–52,800 zone is expected to act as a strong support base, while on the upside, the 54,300–54,400 zone will serve as a key resistance hurdle. A decisive breakout beyond either of these zones is likely to trigger a meaningful directional move in the index.

Expert Views

• Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities: Buy Bank Nifty Futures between 53,680-53,800, with a stop-loss of 53,200, targeting 55,200.
• Rupak De, Senior Technical Analyst at LKP Securities: Buy Bank Nifty May 53,000PE at Rs 300, with a stop-loss of Rs 200, targeting Rs 450.
• Vaishali Patel, Deputy Manager - Research- Technical Department at Jainam Broking: Buy Bank Nifty futures above 53,800-54,350, with a stop-loss of 53,270, targeting 54,860.