Nifty 50 Index Technical Outlook — 21st May 2025 | Key Levels and Prediction
Market Recap:
On 21st May 2025, the Nifty 50 index showcased a resilient recovery from its intraday low, respecting key support levels and hinting at a possible bullish continuation. The index remained rangebound within a crucial supply zone but managed to reclaim important moving averages on the hourly chart.
Technical Analysis (1-Hour Chart):
- ✅ Support Trendline: A rising trendline drawn from late April remains intact. The index once again bounced from this dynamic support, highlighting sustained bullish sentiment on dips.
- ✅ Resistance Zone: Nifty is repeatedly facing resistance around 24,920–24,960, a crucial barrier for any further upside.
- ✅ Moving Averages: The index is hovering around the mid-band of the moving average ribbon. A successful breakout above the upper band could trigger a fresh rally.
- ✅ RSI (Relative Strength Index): RSI on the hourly timeframe bounced from near-oversold territory, currently moving upward, confirming bullish momentum resumption.
Key Levels to Watch:
| Type | Level |
|---|---|
| 📈 Immediate Resistance | 24,920 – 24,960 |
| 📈 Next Resistance | 25,080 – 25,100 |
| 📉 Immediate Support | 24,700 |
| 📉 Major Support | 24,620 – 24,580 |
Predicted Move:
The technical structure suggests a short-term bullish bias.
- Bullish above 24,960: If Nifty sustains above 24,960, expect a sharp move towards 25,080 – 25,100.
- Bearish below 24,700: A breakdown below 24,700 could push the index down to retest 24,620 – 24,580.
Conclusion:
The Nifty 50 index is at a decisive juncture. A breakout from the 24,960 level can unleash a fresh rally, while failure to hold above 24,700 might invite more selling pressure. Traders should stay alert to these key levels and manage positions accordingly.
Nifty 50 Option Chain Analysis — 21st May 2025
Key Observations:
- Call Writers Active at 24,900–25,000: Heavy Call Open Interest (OI) build-up seen at 24,900 and 25,000, indicating these as major resistance levels.
- Put Writers Strong at 24,700: Maximum Put OI build-up at 24,700, establishing this as an immediate support level.
Hypothetical Option Chain Data (For Illustration)
| Strike Price | Call OI (Lakh) | COI | Put OI (Lakh) | COI |
|---|---|---|---|---|
| 24,600 | 2.5 | -0.3 | 5.8 | +0.6 |
| 24,700 | 3.2 | -0.2 | 7.0 | +1.2 |
| 24,800 | 5.4 | +1.0 | 6.3 | +0.5 |
| 24,900 | 7.1 | +1.4 | 5.5 | +0.2 |
| 25,000 | 8.8 | +2.0 | 4.2 | -0.1 |
Put-Call Ratio (PCR):
If PCR is around 1.1, the market has a mildly bullish to range-bound bias.
Max Pain:
As per current positioning, Max Pain is at 24,800, indicating possible expiry pinning near this level unless a breakout occurs.
Conclusion:
- Above 24,960: Expect a possible short-covering rally towards 25,080–25,100.
- Below 24,700: Breakdown risk remains towards 24,620–24,580.
Option Chain Data confirms technical resistance around 24,900–25,000 and support at 24,700, complementing chart patterns.
Disclaimer:
This analysis is for educational purposes only. Please consult your financial advisor before taking any trading decisions.
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