Nifty 50 Shows Bearish Pattern at Record Highs – What’s Next?

Today, the Gift Nifty suggests a likely flat-to-positive start for the Indian benchmark index, trading around 23,020, about 20 points higher than Nifty futures’ previous close.

Yesterday, both the Sensex and Nifty 50 ended without much change after reaching new record highs.


The Sensex dropped 19.89 points to close at 75,390.50, while the Nifty 50 fell 24.65 points, or 0.11%, to 22,932.45.

Nifty 50 showed a bearish candlestick pattern at its all-time high, hinting at profit booking.

Subash Gangadharan, a Senior Technical/Derivative Analyst at HDFC Securities, suggests that while Nifty may continue to rise before the election results, there might be some volatility in the short term. Crucial support levels to watch are at 22,908 – 22,871.

Nifty 50 and Bank Nifty Expectations for Today

Nifty Put options show significant Open Interest (OI) at the 22,700 level, suggesting potential support there. On the call side, substantial OI concentrations are observed at 23,200 and 23,500 levels, according to Mandar Bhojane, Research Analyst at Choice Broking.

Rahul Ghose, CEO of Hedged.in, notes that higher Call Open Interest (OI) build-up at 23,100 and above indicates limited upside. The PCR dropped to 0.88 due to increased VIX, affecting Nifty 50 index.

Nifty 50 ended nearly flat on May 27, settling at 22,932.45. Rupak De, Senior Technical Analyst at LKP Securities, believes the near-term outlook is positive, with support at 22,900 and resistance at 23,000-23,050. A move above 23,050 could trigger a stronger rally.

V.L.A. Ambala, Co-founder of Stock Market Today (SMT), suggests the market is currently overvalued, indicating a possible correction. She advises traders to consider holding short-term positions and looking for quality stocks during potential dips. Nifty may find support around 22,920, 22,845, and 22,790, with resistance at 22,970 and 23,050.

The Bank Nifty index closed at 49,281 on May 27, forming a bullish candlestick pattern. Rupak De suggests significant put writing at the 49,000 strike price indicates strong support, with resistance at 49,600. He recommends a buy-on-dip strategy with a stop loss at 48,900.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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