Market Outlook for 24 May 2024

Nifty started the weekly expiry day on a flat note, but buying interest in the index was seen right from the opening hour and the index rallied higher throughout the day. The index surpassed the previous high and registered a new record to end the day just below the 23000 mark.

The benchmark index rallied higher with the support from the large cap stocks. The index surpassed the previous high resistance and registered a new record high to almost test the 23000 mark for the first time ever. The price action and the RSI readings since last few days have been hinting at an uptrend and thus the up move has been much on our expected lines. Now, the momentum remains strong and hence, traders are advised to continue to stay with the trend. As the index is now in uncharted territory, the retracements of recent correction could determine the next probable resistance/targets. The initial retracement level is seen in the range of 23060-23160 which the index should test immediately. A move above this zone could then lead the indices higher towards 23400 as well. On the flipside, the immediate support on the short term charts have shifted to 22700 and any dips should be used as a buying opportunity. FIIs have been on the short side throughout the series and as the markets are rallying, short covering of these positions could further add fuel to the rally.

All the sectors (except pharma) rallied high on this historic day, but a relative underperformance was seen in the midcap stocks. The broader markets have already seen a good outperformance in last couple of weeks and hence, it seems that the large cap stocks are now witnessing buying interest which could lead the momentum.

                                            Large Cap stocks leads Nifty/Sensex to new record high 

Nifty, Bank Nifty Levels and  FINNIFTY Levels: