Nifty 50, Sensex Outlook: Indian Stock Market Trading Expectations on May 22

Indian Stock Market Expected to Open Higher on Friday Amid Global Gains

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, tracking gains in global markets, amid hopes of a US-Iran peace deal. The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index, with the Gift Nifty trading around 23,657, a premium of nearly 26 points from the Nifty futures' previous close.

On Thursday, the Indian stock market ended lower amid profit booking in select index heavyweights. The Sensex dropped 135.03 points, or 0.18%, to close at 75,183.36, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 23,654.70.

Sensex and Nifty 50 Predictions

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Shrikant Chouhan, Head Equity Research at Kotak Securities, views the short-term market texture as non-directional and range-bound. He identifies key support zones at 75,000 - 74,500 and resistance areas at 75,800 - 76,000. Chouhan believes a breakout above 76,000 could push Sensex up to 76,300 - 76,500, while below 74,500, it could retest levels of 74,000 - 73,800.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, notes that the Nifty 50 index formed a bearish candlestick pattern and witnessed rejection from the 20-DEMA on the daily timeframe. Shetti believes the underlying trend of Nifty 50 remains choppy and a decisive move only above 23,850 - 23,900 levels is likely to open broad-based buying in the market for the near term.

Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd., notes that the Nifty 50 index has slipped below its 50-DMA, which is currently placed near 23,700 levels. Jain expects the Nifty 50 to oscillate within the 23,400 – 23,900 zone in the near term.

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Bank Nifty Prediction

Bank Nifty index ended 122.80 points, or 0.23%, lower at 53,439.40 on Thursday, forming a bearish candlestick pattern on the daily chart with a higher high and a higher low, signaling selling pressure at higher levels. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, believes the 53,900 – 54,000 zone is likely to act as an immediate resistance, while the 53,100 – 53,000 zone is expected to provide crucial support.

Om Mehra, Technical Research Analyst, SAMCO Securities, notes that the Bank Nifty index remains trapped between the 50% Fibonacci retracement at 53,700 and the 61.8% retracement at 52,820. Mehra expects the Nifty Bank to oscillate within the 53,000 – 54,000 zone in the near term.