Nifty Prediction for Thursday, May 21: Bullish candlestick pattern signals buying at lower levels – Technical levels to watch – Markets

Supported by gains in oil & gas and auto stocks, the Nifty closed at 23,659, up 41 points, or 0.17 per cent. During the session, the index touched an intra-day high of 23,690.90 and a low of 23,397.30.

Nifty50 top gainers and losers on Wednesday, May 20

Among the top gainers on the Nifty index were Hindalco Industries and Bajaj Auto, which supported the broader market recovery.

Nifty Prediction for Thursday, May 21 by experts

Technical analysts point out that Wednesday’s long bullish candlestick pattern on the daily charts confirms strong accumulation on dips, setting a higher floor for Thursday’s trade.

According to Sachin Gupta, VP – Research, Technical Research, at Choice Broking Private Limited, Indian equity benchmark Nifty index witnessed a positive close on 20th May 2026. The index opened with a gap-down of 160.75 points at 23,457.25, reflecting weak sentiment at the start of the session. The selling pressure in the opening minutes dragged the index to an intraday low of 23,397.30.

“However, strong buying interest emerged from lower levels thereafter, helping the index recover steadily throughout the day. The recovery momentum remained intact through the session as the index filled the morning gap-down and climbed to an intraday high of 23,690.90. The index eventually settled at 23,659.00, ending the day with a gain of 41 points or 0.17%,” Gupta stated.

On the daily timeframe, Gupta stated the index formed a bullish candlestick pattern after recovering sharply from lower levels and filling the opening gap-down. The formation indicates buying strength emerging at lower levels and improving short-term sentiment in the market.

From a technical perspective, immediate support is placed in the 23,350–23,400 zone, while resistance is observed in the 23,900–23,950 range.

“The Relative Strength Index (RSI) stands at 45.64, indicating gradual improvement in momentum though the index still trades below the stronger bullish zone. The volatility index, India VIX, declined by 1.26% to close at 18.44, indicating slight easing in market volatility and improving stability in broader sentiment. In the derivatives segment, notable call writing was observed at the 23,700 and 23,800 strikes, while put writing was concentrated at the 23,600 and 23,500 levels, indicating immediate support shifting higher with resistance near upper levels,” the analyst said.

Sectorally, the market witnessed mixed performance across sectors. Strength was visible in Oil & Gas, Metals, PSU Banks, Financial Services, and Realty stocks, while weakness persisted in Media, FMCG, IT, Chemicals, and Consumption-related sectors. Market breadth remained slightly positive overall, with advancing stocks marginally outnumbering declining stocks, indicating selective buying interest in the broader market, he added.

Bank Nifty Prediction for Thursday, May 21 by Sachin Gupta

Gupta said, the Bank Nifty index opened with a gap-down of 393.45 points at 53,015.70, reflecting weakness in the banking space at the start of the session. The index registered its intraday low of 52,836.10 within the opening minutes amid initial selling pressure.

“However, buying interest emerged strongly from lower levels thereafter, helping the index recover steadily throughout the session. The recovery momentum pushed the index to an intraday high of 53,640.90 after filling the morning gap-down. The index eventually settled at 53,562.20, ending the session with a gain of 153.05 points or 0.29%. On the daily timeframe, Bank Nifty formed a bullish candlestick pattern, indicating buying support emerging from lower levels. The recovery from intraday lows and closing near the day’s high reflects strengthening momentum in the banking index,” he stated.

From a technical perspective, Gupta stated immediate support is placed in the 52,800–52,900 zone, while resistance is observed in the 54,250–54,350 range. The Relative Strength Index (RSI) stands at 41.29, indicating weak-to-neutral momentum though signs of recovery are gradually emerging from lower levels.

“Markets witnessed another volatile session with both benchmark indices opening sharply lower amid weak global and domestic sentiment. However, strong buying interest from lower levels helped the indices recover significantly during the session and erase most of the opening losses. The recovery in benchmark indices along with a decline in volatility indicates improving confidence among market participants, though broader participation remained selective. Going forward, sustained movement above immediate resistance zones will remain crucial for confirming stronger recovery momentum in the market,” Gupta concluded.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said, emphasised that the index has successfully established a well-defined consolidation band, and traders should look for a clear breakout on Thursday to confirm directional momentum.

“After witnessing a weakness from the highs on Tuesday, Nifty shifted into a fine recovery from the lows again on Wednesday and closed the day higher by 41 points. After a weak opening, the market shifted into a sustainable recovery from the lows and that continued for mid to later part of the session. Minor intraday dips in between have been bought into and the Nifty finally closed near the highs. The opening downside gap has been filled completely,” Shetti said.

A long bull candle has been formed at the lows on the daily chart, which indicates emergence of buying from the lows. “Nifty has been moving within a high low range of 23800-23200 levels over the last few sessions and is gradually rising by forming higher lows,” he added.

“The underlying trend of Nifty is range bound. A decisive breakout of 23800 levels is likely to confirm further upside in the near term. Any weakness from the highs could open small downward correction within a range,” Shetti concluded.

Vinay Rajani, Senior Technical Research Analyst – Prime Research, HDFC Securities, said, “For the last five trading sessions, Nifty has again slipped into an alternating pattern of one session of gain followed by one session of loss. Today, the index opened 161 points lower, hit its intraday low in the very first few minutes of trade, and then reversed course sharply. Nifty registered a smart intraday recovery of nearly 300 points from the morning low of 23,397 to finally settle at 23,659, up 41 points. NSE cash‑market turnover fell by about 12% compared with the previous session.”

Among index heavyweights, Hindalco, Reliance, and Bajaj Auto advanced the most, while BEL, Tech Mahindra, and Eternal emerged as key laggards.

He further said, “Sectoral performance was mixed, with Oil & Gas, Auto, and Realty indices logging the strongest gains, while Nifty Media, FMCG, Chemical, and IT ended in the red. The broader market moved in sync with the benchmark, with the Nifty Midcap 100 rising 0.49% and the Nifty Smallcap 100 holding in positive territory with a minor gain of 0.04%. Market breadth remained neutral, as the BSE advance–decline ratio stood at 1.07.”

The rupee closed 29 paise weaker at 96.83 against the dollar, marking a fresh all‑time low, with today’s intraday low at 96.9650. The sharp rupee weakness likely reflects persistent FII outflows, elevated crude prices, and safe‑haven demand for the dollar amid global risk‑off sentiment.

“Despite these negative cues, Nifty has managed to absorb supply at lower levels and is forming higher lows on a short‑term time frame. Support for the index now moves up to around 23,370, derived from an upward‑sloping trend line joining the recent higher swing lows. On the upside, 23,800 is a crucial resistance; a close above this level could extend the pullback towards the 50‑day EMA, currently near 24,030,” Rajani added.

Broader markets on Wednesday

In the broader market segment, the Nifty MidCap ended 0.49 per cent higher, while the Nifty SmallCap rose 0.04 per cent.

Sectorally, the Nifty Oil & Gas and the Nifty Auto outperformed the market, aided by buying interest in energy and automobile counters.

On the other hand, the Nifty Media and the Nifty FMCG ended among the top laggards during the session.

On Tuesday, the Sensex declined 114.19 points, or 0.15 per cent, to settle at 75,200.85. The Nifty dipped 31.95 points, or 0.14 per cent, to end at 23,618.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)