Nifty 50, Bank Nifty Face Third Consecutive Session of Selling Pressure Amid Range-Bound Trading

Nifty and Bank Nifty Maintain Sideways Trajectory

The Nifty 50 and Bank Nifty have maintained their sideways trajectory in the short term, with key levels to watch for both indices.

For the Nifty 50, immediate support is seen at 23,800, and a decisive fall below this level can drag the index toward 23,700. However, any sharp move above 24,000 can open the door for the 24,100–24,300 levels.

Meanwhile, the Bank Nifty remains positive as long as the index sustains above the 54,400 support zone. A decisive fall below this level can drag the index toward 53,700. On the upside, resistance is placed around 55,500–55,800.

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Market Breadth

Market breadth was moderately in favor of the bulls on May 27, with about 1,539 shares advancing against 1,441 declining shares on the National Stock Exchange.

Nifty Outlook and Strategy

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The Nifty 50 index witnessed heightened volatility during the month of May, with most sessions opening either gap-up or gap-down. However, the index did not exhibit a sustained one-directional trend throughout the period. Instead, it largely remained range-bound, trading within a narrow band for most of the month.

The 20-day, 50-day, 100-day, and 200-day EMAs have remained largely flat, and momentum indicators and oscillators continue to reflect a sideways bias in the near term.

Key Resistance and Support Levels

Nifty Trading Strategy

Buy Nifty Futures on dips between 23,940–24,030, with a stop-loss at 23,850, targeting 24,260.

Bank Nifty Trading Strategy

Buy Bank Nifty Futures between 53,680–53,800, with a stop-loss at 53,200, targeting 55,200.

Bank Nifty Outlook and Positioning

The Bank Nifty has established a strong base near the 61.8 percent Fibonacci retracement level of its prior upmove (49,955–57,456), following which the index staged a notable rebound in the latter half of the month.

The index is trading above its 20-day EMA and hovering around its 50-day EMA, with the 20-day, 50-day, 100-day, and 200-day EMAs remaining largely flat over the past few trading sessions.

Key Resistance and Support Levels

Bank Nifty Trading Strategy

Buy Bank Nifty Futures between 53,680–53,800, with a stop-loss at 53,200, targeting 55,200.

Technical Analysis

The Bank Nifty has witnessed a breakout above the falling trendline drawn from the swing high of 57,456, indicating improvement in the short-term trend structure. The index formed a Wedge Pop candle earlier this week, signalling bullish momentum after a consolidation phase.

Key Resistance and Support Levels

Bank Nifty Trading Strategy

Buy Bank Nifty Futures above 55,600–55,650, with a stop-loss at 54,720, targeting 56,600.