The Nifty 50 index opened with a gap down of over 150 points on Wednesday, May 20, and briefly slipped below the 23,400 mark before recovering. According to reports from NDTV Profit, the index rebounded more than 260 points from its day's low and closed at 23,3659 level, up by 41 points or 0.17%. This recovery indicates that buyers are still defending lower levels, even though the broader trend has not yet turned clearly positive. The day's price action led to the formation of a bullish bodied candle, though this candle remained within the range of the large bearish candle formed on May 12. Over the last five sessions, the index has moved in an uneven manner, closing positive on alternate days, while remaining range bound for the last seven trading sessions.
During the session, Nifty tested its 8-DEMA but faced resistance near that level. Over the last five sessions, the index has moved in an uneven manner, closing positive on alternate days, while remaining range bound for the last seven trading sessions. The positive takeaway is that Nifty has not formed a lower low, while it has also failed to form a higher high, keeping it in a wait and watch phase. The current consolidation is now around seven trading sessions old, which is shorter than the previous consolidation phase between April 23 and May 11, 2026, which lasted for nearly 12 trading sessions. This suggests that the ongoing range-bound movement may continue for another four to five sessions before the index attempts a decisive breakout or breakdown.
The index needs a decisive close above its 50-DMA, placed near 23,659, to strengthen the bullish bias, as reported by NDTV Profit. However, for the uptrend to resume with conviction, the index must close above 23,860 and form a higher high. Even if this happens, the upside may not be smooth, as the 20 DMA placed around 23,928 could act as the next hurdle. On the downside, immediate support is seen near 23,500, followed by Wednesday's low of 23,397. As long as the index holds above these levels, it may attempt to move towards the upper end of the trading range. The 14 period daily RSI continues to remain below the 50 mark, while the hourly RSI is hovering near 50, with momentum improvement possible only if the hourly RSI moves above 60. A decisive move beyond the 23,262 to 23,860 band will be important for fresh directional trades.
For the uptrend to resume with conviction, the index must close above 23,860 and form a higher high, as reported by NDTV Profit. The 20 DMA placed around 23,928 could act as the next hurdle, while immediate support is seen near 23,500, followed by Wednesday's low of 23,397. The 14 period daily RSI continues to remain below the 50 mark, while the hourly RSI is hovering near 50, with momentum improvement possible only if the hourly RSI moves above 60. A decisive move beyond the 23,262 to 23,860 band will be important for fresh directional trades. Until then, the index may continue to move within the range, where traders may prefer buying near support and booking profits near resistance.
Shyam Metalics & Energy has moved above the breakout level of a key horizontal trendline resistance, indicating improving price strength. According to NDTV Profit, the stock is currently trading above its key moving averages and has witnessed a rise in price along with above average volumes in recent sessions. The stock needs to sustain above the ₹926 to ₹928 zone for a confirmed breakout, with potential upside levels of ₹1,020 to ₹1,050 if it moves above this level. The trendline has been formed by connecting the series of highs from February 11, 2026, making it nearly a four-month long resistance zone. The stock is currently trading above its key moving averages, which reflects a positive price structure, with the 14 period daily RSI having moved above the 60 mark and continuing to rise, suggesting strengthening momentum.
