Stock Market Technical Analysis | 18th to 22nd May 2026 Weekly Wrap

Markets traded in a volatile range but closed positive, supported by strength in IT and banking stocks while broader markets remained resilient.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded volatile in the previous week before closing with 0.32% gain at 23719 level. Banking Index outperformed the benchmark index as it closed with 0.64% gain at 54055 level.
• Among the Nifty constituents, GRASIM and WIPRO outperformed the benchmark index as they closed with 7.55% and 6.90% gains while POWERGRID and TATASTEEL underperformed as they closed with 3.78% and 3.53% cut respectively. Among the Bank Nifty constituents AXISBANK outperformed the benchmark index as it closed with 3.26% gain while SBIN underperformed the benchmark index as it closed with 1.45% cut.
• Among sectors, NIFTYIT index outperformed the benchmark index during the previous week as it closed with 4.31% gain while NIFTYMEDIA index underperformed as it closed with 4.25% cut. Broader market outperformed the benchmark index as both MIDCAP index and SMALLCAP index closed with 1.36% and 0.41% gains respectively.
• Volatility index (India VIX) closed with 5.15% cut at 17.82 level.
• FII were net sellers as they sold stocks worth Rs 7,573 Cr while DII were net buyers as they bought stocks worth Rs 16,948 Cr during the previous week in the cash segment.
• Globally, equity markets traded with positive bias as both US market (DJIA) and European market (STOXX 600) closed with 2.13% and 3.0% gains respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 24400 call and 23750 put side with max OI at 24000 call and 23000 put side (26th May expiry). Nifty cumulative PCR closed at 1.08 for May 22.
• Derivatives data for Bank-nifty suggest max OI addition at 56000 call and 54000 put side with max OI at 56000 call and 54000 put side (26th May expiry).
• Bank-nifty cumulative PCR closed at 0.79 for May 22.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded volatile in the previous week and closed with positive candlestick formation on the weekly chart
• Benchmark index is likely to continue with volatile price action in the coming week.
• Benchmark Index has support at 23,300–23,000 level and resistance at 24,300–24,600 level

BANKNIFTY (WEEKLY)

• Banking index outperformed the benchmark and closed with positive candlestick formation on the weekly chart
• Banking index is likely to perform in line the Benchmark index in the coming week
• Banking index has support at 53,000-52,500 and resistance at 55,500 -56,000 level

FINNIFTY (WEEKLY)

• FINNIFTY index outperformed the banking index and closed with positive candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 25,000-24,700 level and resistance at 26,200-26,500 level.

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Market FAQs – Weekly Summary

What is the current outlook for Nifty?

Nifty remains range-bound with a mildly positive bias supported by strong domestic participation.

Why did Bank Nifty outperform the benchmark index?

Private banking stocks and selective buying in financials supported Bank Nifty performance.

Which sector performed best last week?

The IT sector outperformed with strong gains led by stocks like Wipro.

Why did the Media sector underperform?

Media stocks witnessed profit booking and weaker momentum compared to broader markets.

What does the decline in India VIX indicate?

Lower India VIX suggests reduced market fear and improving investor confidence.

What does derivatives data suggest for Nifty?

Options data indicates support near 23000 and resistance around 24400 levels.

What is the significance of PCR at 1.08?

A PCR above 1 reflects relatively stronger put writing and a cautiously bullish outlook.

How are FIIs and DIIs impacting market sentiment?

FIIs continued selling while strong DII buying helped stabilize the market.

How are global markets influencing Indian equities?

Positive cues from US and European markets supported overall domestic sentiment.

What should traders watch in the coming week?

Traders should monitor volatility, derivatives positioning, and sector rotation for trend confirmation.

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