Quote on Pre-market comment for Tuesday May 19 by Aakash Shah , Technical Analyst , Technical Research Analyst, at Choice Broking
Below the Quote on Pre-market comment for Tuesday May 19 by Aakash Shah , Technical Analyst , Technical Research Analyst, at Choice Broking
Indian equity markets are expected to open on a mildly positive note, with Gift Nifty trading at 23,674, up by 57 points. Global equities may witness relief buying after reports suggested that former US President Donald Trump delayed potential military action against Iran following requests from Gulf nations including Saudi Arabia and the UAE. However, elevated crude oil prices and volatility levels continue to keep sentiment cautious.
In the previous session, The Nifty 50 recovered from sharp intraday losses and ended marginally higher by 0.03 percent on May 18. Despite the recovery, momentum indicators and oscillators remained weak, signalling continuation of short-term bearish undertones. Elevated India VIX and firm crude oil prices continue to remain key concerns for the market.
The directional indicators also remained bearish, with the DI- continuing to stay above the DI+, indicating that sellers still maintain dominance over the market. Momentum indicators continued to favour bears, with both RSI and MACD witnessing bearish crossovers, signalling weak momentum despite the intraday recovery.
According to technical observations, the Nifty is expected to trade within the 23,250–23,850 range in the near term. A decisive move above 23,850 may open the path toward the crucial resistance zone of 24,000–24,100. On the downside, sustaining below 23,400 could intensify selling pressure and drag the index toward 23,250 and then 23,100 levels.
Derivatives data indicates selective improvement in sentiment. The Nifty Put-Call Ratio (PCR) rose sharply to 1.24 on May 18 from 1.01 in the previous session, indicating fresh put writing activity and some support emerging at lower levels despite prevailing volatility.
India VIX, the market fear gauge, extended its upward move for another session and climbed 4.47 percent to 19.63. The volatility index remained above all key moving averages, signalling continued discomfort for bulls. Analysts believe that a move above the 20 mark could increase downside risks, while stability below 18 would be supportive for bullish sentiment.
Option chain positioning indicates immediate support near the 23,400–23,250 zone due to fresh put writing activity, while resistance is visible around the 23,800–24,000 zone where call writers continue to remain active.
The Nifty Bank also recovered from sharp intraday weakness but still closed 0.3 percent lower. The banking index filled the opening bearish gap and formed a bullish candle with a long lower wick, reflecting strong buying interest at lower levels.
Technically, Bank Nifty tested the 61.8 percent Fibonacci retracement level of the April rally during intraday trade and witnessed a rebound. However, the index continued to trade below the 50 percent Fibonacci retracement level and remained below all key moving averages, indicating weakness in the broader structure.
Immediate support for Bank Nifty is placed around 52,500–52,200, while resistance is seen near 54,400–54,700. A sustained move above resistance levels will be required to improve short-term sentiment in the banking index.
Overall, the technical setup suggests a mildly positive opening supported by easing geopolitical concerns, but the broader market structure remains cautious due to elevated volatility, weak momentum indicators, and persistent pressure near higher levels. Traders are likely to remain stock-specific with focus on key support levels and global developments.
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