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Nifty opened gap-up and has been trading sideways since then. On the hourly charts, we can observe that Nifty is currently trading around the downward sloping trend line, which can act as resistance and hold Nifty from rising further during the day. In today’s trading session, it has also filled the gap area created on May 6, 2019, which lies in the zone of 11634 – 11701, which can additionally act as resistance in the short term. Considering all these factors, our sense is that Nifty is trading in the resistance zone and we expect it to drift lower in the second half of the trading session. We continue to maintain our bearish stance on Nifty; and if the closing is above the reversal of 11660, the short-term view shall be reviewed.
On the hourly chart, Nifty is trading above the 20hour moving average (HMA) and the 40-HEMA, i.e. 11316 and 11342, respectively. The hourly momentum indicator has a positive crossover. Market breadth is positive with 1462 advances and 254 declines on the National Stock Exchange (NSE).
Indian stock markets ended with strong gains on May 20, after exit polls predicted the BJP-led National Democratic Alliance to return to power with a comfortable majority. Both the indices posted the biggest single-session gain since 2009. The Sensex reclaimed the 39000-mark, while the Nifty Bank posted its biggest one-day gain. The Sensex jumped by 3.75% or 1421.90 points to 39352.67. The Nifty soared by 3.69% or 421.10 points to 11828.25
The market breadth was in favor of advances with an advance-decline ratio of 5:1.
