Nifty 50 Intraday Trade Setup for 23'rd May 2022

Index once again faced a strong rejection from 16,350 levels in the morning trade, which continues to be a hurdle. A short-term trend-reversal is possible only if the immediate resistance at 16,400(rounded off) is broken and sustained, which in turn will activate the ’XABCD’ pattern and can fuel a small rally towards 16,700-900 levels (Half Bat resistance also). The index has once again created a strong base for the 2nd time in this down move at 15,700 levels (‘triple bottom’). Base created previously at 17,000 levels could not be held on to, and the down-move continued. 16,400-15,700 is the critical range for the week. The intermediate trend remains negative, and we are currently in the pullback phase of the down-move.