The Indian stock market is gearing up for a promising session on Monday, May 26, with benchmark indices Sensex and Nifty 50 expected to open on a positive note. This upbeat mood follows a solid rally on Friday, fueled by encouraging global cues and upbeat domestic sentiment.
The GIFT Nifty, trading at around 24,930 — roughly 50 points above Nifty futures’ previous close — signals a confident start. Last Friday, Nifty 50 closed above the 24,800 mark, while Sensex surged nearly 770 points to settle at 81,721, marking a nearly 1% gain. Investors are watching key technical levels as the markets show resilience.
Strong Momentum Builds on Daily Charts
Sensex has shaped a bullish reversal pattern on the daily charts, trading comfortably above its 20-day moving average (SMA). This technical strength signals that short-term buyers remain firmly in control. According to Amol Athawale, Vice President of Technical Research, the immediate resistance for Sensex is pegged at 82,300. If the bulls manage to push above this level, the index could climb towards the 82,700 to 83,600 zone.
On the flip side, traders should keep an eye on critical support zones. The 80,900 to 80,500 range acts as a safety net for short-term participants. A break below 80,500 could trigger some profit booking, potentially dragging the index down to 80,300 or even further to 79,700. So, it’s a classic tug of war between bulls and bears, with these levels dictating the next move.
Nifty 50’s Bullish Candle Sparks Confidence
Nifty 50’s formation of a bullish candle on the daily chart is a clear sign of strength. The index closed the previous session up nearly 1%, signaling strong buying interest. Traders are likely to look for confirmation of this momentum today as the index eyes key resistance around 24,900.
With the GIFT Nifty futures trading at a premium, the expectation is for a positive opening bell on the cash market as well. Market participants are also keeping tabs on global cues, especially from US and Asian markets, which remain supportive.
Bank Nifty’s Outlook: Holding Ground Amid Volatility
The Bank Nifty index, a critical barometer for the banking sector, is also showing signs of stability. The index has been consolidating in recent sessions, but technical charts hint at a potential breakout if it can hold above its support zones near 55,000.
However, volatility is expected to persist due to mixed economic data and ongoing geopolitical tensions affecting investor sentiment. Traders should watch for volume spikes and sector-specific news, which could drive sharp moves in either direction.
Key Support and Resistance Levels at a Glance
To help readers get a clearer picture, here’s a quick snapshot of important technical levels:
| Index | Support Zones | Resistance Zones |
|---|---|---|
| Sensex | 80,900 – 80,500 | 82,300 – 83,600 |
| Nifty 50 | 24,600 – 24,500 | 24,900 – 25,100 |
| Bank Nifty | Around 55,000 | 56,200 – 57,000 |
The market’s next moves will likely depend on global market momentum and domestic cues, including upcoming corporate earnings and government policy announcements.
Looking Ahead: What Could Move the Markets?
While the technical charts suggest an optimistic start, the market won’t move in isolation. Watch out for:
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US Federal Reserve’s stance on interest rates, as any hawkish tone could dampen risk appetite.
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Crude oil price fluctuations, which impact inflation and corporate earnings.
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Domestic macroeconomic data, such as industrial output and inflation figures expected later this week.
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Corporate earnings reports, especially from heavyweights in IT and banking sectors.
There’s also a lingering sense of caution as geopolitical uncertainties and inflationary pressures loom. So, even though the market seems upbeat, investors would do well to keep some powder dry for sudden shifts.
In short, Monday’s session looks set to open on a positive note, with bulls eyeing key resistance levels. But as always, the market’s dance between hope and fear continues.
