Trade Setup For May 25: Nifty Bulls Eye 23,900 Breakout Amid Progress In US-Iran Negotiations
The Indian benchmark indices rallied through the day on Friday to settle in the green. A balanced market breadth, promising global cues on the Iran front may keep the bias positive, though uncertainty still remains, as per analysts.
“Nifty formed a bullish candlestick pattern with small shadows in either direction, which remained contained inside previous week price range signaling consolidation amid stock-specific action,” said Bajaj Broking Research.
Accordingly, the immediate resistance for Nifty is placed in the 23,870-23,900 zone and any sustainable upmove could result in Nifty extending its pullback towards 24,050, followed by 24,200 in the short term.
On the flipside, the immediate support for Nifty is placed in the 23,570-23,550 zone, according to SBI Securities Head of Technical and Derivatives Research Sudeep Shah.
“Going into the coming week, volatility is expected to remain elevated owing to the monthly F&O expiry. We expect the Nifty to trade within a broader range of 23,500–24,000 with a positive bias,” stated Nilesh Jain, Head of Technical and Derivative research at Centrum Finverse.
Nifty Bank
The Bank Nifty index outperformed the benchmarked indices supported by robust buying in the private banking space. Going ahead, the index faces key resistance at 54,900, while immediate resistance is placed between the 54,400 and 54,500 zone.
“Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 54,900, followed by 55,300 in the short term,” outlined Shah from SBI Securities.
On the downside, the immediate support for Bank Nifty is placed in the 53,600-53,500 zone.
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Market Recap
Benchmark indices ended Friday higher, with Nifty 50 closing at 23,719.30, up 0.27%, and Sensex at 75,415.35, up 0.31%. For the week, Nifty rose 0.32% while Sensex gained 0.37%, marking a marginal increase over the period.
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