India’s Nifty 50 index faced continued technical resistance near its 20-day exponential moving average on May 22 as profit booking resumed following a brief recovery in banking stocks.
Technical analysts noted that the benchmark struggled to sustain moves above key short-term averages despite positive global cues and hopes of progress in U.S.-Iran peace talks. The index closed at 23,719, gaining 64 points on the day but remaining below levels that would confirm a decisive breakout.
Market observers said the 20-day EMA near 23,700-23,850 had acted as a ceiling during recent sessions, with rallies in financial stocks failing to pull the broader index through the zone convincingly. Sector rotation into defensives earlier in the week had added to the cautious tone.
Foreign institutional investors continued to sell Indian equities, offloading nearly 1,891 crore rupees in the previous session according to provisional data. Analysts said sustained FII outflows and global bond yield pressures could keep the Nifty range-bound until clearer signals emerge on Middle East de-escalation and domestic rate policy.
The Sensex gained 232 points on the same day but broader participation remained selective. Max Healthcare and ONGC were among Nifty laggards. Market expert Anil Singhvi identified 23,850 to 24,000 as a near-term resistance band for the benchmark index heading into monthly expiry.
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Sources:
https://pulse.zerodha.com/