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Market Commentary
Nifty Inches Higher for the Week, Bollinger Band Contraction Signals Impending Move
Posted On : 2026-05-22 19:50:01( TIMEZONE : IST )
Technical Analysis Report - Om Mehra, Technical Research Analyst, SAMCO Securities
Nifty ended the session at 23,719.30, gaining 0.27%, with the open and low nearly at the same level. On the weekly timeframe, the index registered a modest gain of 0.32%, though the broader range-bound phase continued. The index is hovering around the 38.2% Fibonacci retracement placed near 23,650. Nifty now holds above the 50-day SMA but remains below the 20-day SMA placed at 23,869, indicating that the short-term setup is improving but it has not yet turned decisively positive.
The Bollinger Bands are contracting from the previous few sessions. A contraction in the bands typically precedes a directional move. The RSI is placed near 47, with the RSI and signal lines nearly converging, it reflects a neutral momentum setup. The advance-decline ratio remained favourable during the session, indicating broader participation is on the bullish side.
On the downside, the 23,550 level remains the immediate support, followed by 23,450. On the upside, the 23,880 zone, aligned with the 23.6% Fibonacci retracement, remains the immediate resistance, followed by 24,000. A sustained close above 23,880 would break the range and could trigger a move on the higher side.
Nifty Bank ended the session at 54,055.35, gaining 615.95 points or 1.15%, with the open and low nearly at the same level. The daily chart formed a strong bullish candle, closing above the 50% Fibonacci retracement placed around 53,700.
On the weekly timeframe, Nifty Bank gained 0.64% and formed a bullish piercing line pattern, signalling a potential shift in sentiment after the recent consolidation phase. The index now trades above the 10-day SMA but remains below the 20- and 50-day SMAs, indicating the recovery is in its early stages. The RSI is placed at 45 and has moved above its signal line, reflecting a gradual shift toward improving momentum.
On the downside, the 53,700 zone remains the immediate support, followed by 53,450. On the upside, 54,500 remains the first resistance, followed by 54,750. A close above the 54,600 confluence zone would strengthen the recovery and open the path toward higher levels.
