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Technical View: Bulls made a strong comeback in the market on Friday 23 May after a recent profit -booking sessions. This led the Nifty to reach an important resistance level of 24,850 with a significant increase. During the week, the index received support at 24,462 near the 20-Day Experience Moving Average (EMA). It also regained the level above 5-Day and 10-Day EMA. The Nifty opened at 24,640 and reached the Intrade High of 24,909, moving upwards throughout the day. At the end of the market, the index closed up 243 points or 0.99 percent to close at 24,853. This led to a long bullish candlestick pattern on the daily chart.

How can the Nifty move on Monday 26 May

Technically, this action of the market is indicating to create a higher bottom in the near period after a slight decline for Nifty. Higher Tops and Bottom’s fast trend on the Daily Time Frame Chart remains intact.

However, on a weekly basis, the Nifty declined by 0.67 percent. This led to a bearish candle with long lower shadows on the weekly chart. This pattern is indicating purchases on the decline.

Nagraj Shetty of HDFC Securities Said, “After creating a higher bottom at 24,462 on May 22, the Nifty may move towards the next resistance zone and upwards in the coming week. It is getting immediate support at 24,615.”

How can the bank Nifty move on Monday 26 May

Bank Nifty also created a bullish candlestick pattern on the daily chart. The index rose 457 points or 0.83 percent to close at 55,398 on Friday. It retrieved levels above 10-Day EMA. During the week, the index added 43 points and made a doji -type candlestick pattern. This pattern is indicating indifference among market participants.

Amol Athawale of Kotak Securities Said, “Support on the index is seen on the higher bottom of 54,575. As long as the index is trading above this level, the bulish momentum is likely to continue. Tillwards, upwards, 55,700-56,100-56,500 in the index will serve as major resistance zones.” However, he warned that the uptrend may be weak if the index falls below 54,575.

Meanwhile, the index of fear i.e. India Vix, remained above all week. It remained above 17 points in a row. It rose 0.12 percent to 17.28 at the end of the week and recorded a total increase of 4.4 percent during the week.

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