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Nifty Prediction for 31st May 2024. Go Long in the Dip.
On Friday, Nifty may try to break its losing streak, so we can see bullish market taking Nifty around the 22,600 level.
After opening gap down, the Nifty continued to fall throughout the day, making it below the 22,500 level, giving a closing at 22,488.65, down by -0.95% and is the 4th consecutive day that the Nifty ended in the red, which may create some fear in Investor, but as I said earlier, it’s just an outcome of indecisiveness of the General Election result.
Despite being down by more than 1% during the trading session, India vix didn’t rise, in fact, at some point in the morning it tried to cool down, but in the end, India vix ended flat for the day, indicating the chance of a big move in the market in coming days.
Looking at the Nifty 50 Stocks,
Top Gainers: ICICI Bank, Axis Bank, HDFC Bank, SBI, Kotak Mahindra Bank
Top Losers: Tata Steel, Tech Mahindra, Power Grid, Titan, Wipro (not only these, but almost all stocks in the Nifty 50 ended in red, except 5 of them, which were the banking stocks)
Also Read: 7 Best Solar Energy Stocks in India for 2024. CAGR Growth of 30%
Nifty50 Prediction for 31st May 2024
Looking at the Nifty 50, then you can see that it is currently trading on the Ascending Trendline, which is a good sign for Nifty and it might take support from here and make its way to the next high, but the concern is that, it has once again fell below the support level of 22,500.
What to Expect on Friday 31st May 2024
So, on Friday, 31st May 2024, Nifty may open a little gap up above the 22,500 level as it has already risen from the trendline support in the last trading session, taking it around the 22,600 or 22,650 level, and closes the day in green because Nifty has already 4 consecutive trading sessions in red, and it might try to break the losing streak.
Also, if you look at the India vix, then it has somewhere ended in red despite Nifty ending almost 1% down, saying that the market is down because of the profit booking, and not because of the fear.
Anyway, if Nifty managed to stay above the 22,500 level on Friday, then it might travel higher around the 22,600 level, as this is the nearest resistance for Nifty, and then towards the 22,700 level. More than this is not expected.
So here are the trading levels for 31st May 2024 – 22,400 – 22,700
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 22,000 (24.27L) | 23,000 (38.92L) |
| 22,500 (20.48L) | 22,500 (17.38L) |
| 22,450 (11.78L) | 22,600 (13.56L) |
Nifty50 Support and Resistance for 31st May 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 22,500 – 22,400 | 22,600 |
| 22,300 | 22,700 |
| 22,200 | 22,800 |
Nifty Trade Strategy for 31st May 2024
Nifty is taking support at its trendline, and it might trade in green on Friday, 31st May 2024, so we need to look for long positions.
So, here are the trade strategy,
If Nifty manages to stay above 22,500 then it’s a good opportunity to go after a long trade till the next resistance level which is the 22,600 – 22,650 level, but only if it makes any Bullish chart pattern or any bullish candlestick.
But if Nifty is consistently facing resistance from the 22,500 level then, it might fall a little bit toward the 22,400 level once again, and here we need to wait for its reversal, and then go long.
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
