Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 26

By Admin

26 May, 2025

The Indian stock market is set to kick off the week on a strong note, buoyed by favorable global cues and supportive technical indicators. As the Gift Nifty trades at around 24,930 — nearly 50 points higher than the Nifty futures’ previous close — all signs point toward a positive start for benchmark indices Sensex and Nifty 50 on Monday, May 26.

Market Recap: Friday’s Strong Finish

On Friday, the domestic equity markets closed sharply higher. The Sensex surged 769.09 points (0.95%) to close at 81,721.08, while the Nifty 50 gained 243.45 points (0.99%) to settle at 24,853.15. The bullish momentum reflects strong buying interest and sets the tone for a promising start this week.

Sensex Outlook: Reversal Formation Sparks Optimism

The Sensex has formed a promising reversal formation on the daily charts and is comfortably trading above the 20-day SMA — a bullish signal.

Support Levels: 80,900 and 80,500
Resistance Levels: 82,300 (immediate), followed by 82,700–83,600
Critical Point: A fall below 80,500 could shift sentiment, dragging the index toward 79,700.

According to Amol Athawale, VP-Technical Research at Kotak Securities, a breakout above 82,300 may push the Sensex to new highs in the short term.

Nifty 50 Prediction: All Eyes on the 25,000 Mark

The Nifty 50 ended with a 0.99% gain on May 23 but slipped 0.67% on a weekly basis. On the daily chart, the index formed a bullish candle, holding strong above its 21-Day EMA, indicating strength.

Resistance Levels: 25,000 (psychological barrier), followed by 25,200–25,250
Support Levels: 24,500 and 24,480 (21-DEMA)

Technical experts suggest that a firm breakout above 25,000 could trigger a rally toward 25,250. As per Hrishikesh Yedve of Asit C. Mehta, the Nifty 50 is likely to maintain upward momentum as long as it holds above 24,480.

Derivatives Insight: Nifty OI Data

According to Choice Broking:

• Strong Call Writing: At 25,000 and 25,500 (indicating resistance)
  
  

• Heavy Put Writing: At 24,500 (indicating support)
  
  

• Trading Range: 24,500 to 25,100
  
  

This suggests a balanced market with a cautiously optimistic tone unless a breakout occurs.

Broader Technical View

Om Mehra of SAMCO Securities noted that the higher-high pattern on the daily chart reinforces the ongoing uptrend. Resistance lies near 25,080, while support levels are pegged at 24,600 and 24,550.

The India VIX currently at 17.16, is an important volatility indicator. A drop below 17 would further strengthen bullish sentiment.

VLA Ambala, Co-Founder of Stock Market Today, encourages long-term investors to use dips of 3%-10% as buying opportunities. He identifies support around 24,660–24,750 and resistance at 24,960–25,050.

Dr. Praveen Dwarakanath of Hedged.in highlighted bullish signals such as Bollinger band expansion and a bullish stochastic indicator, suggesting momentum on the upside.

Bank Nifty Prediction: Gearing Up for a Breakout?

The Bank Nifty gained 456.95 points to close at 55,398.25, forming a doji candle that hints at consolidation amid buying interest.

Support Zone: 54,000–53,500
Resistance Zone: 55,700–56,000

As per Bajaj Broking, dips should be seen as buying opportunities, especially with support confluence at 20-day EMA and retracement levels. A move above 56,000 could signal the next leg of the rally.

Hrishikesh Yedve added that a green candle post a hammer pattern indicates strength, with 21-DEMA support at 54,630. Sustained movement above 55,700 may lead to new all-time highs for the index.

Conclusion

Indian benchmark indices are well-positioned to extend their bullish momentum on May 26. With strong global cues, encouraging technical setups, and positive derivatives data, both Nifty 50 and Sensex could continue their upward trajectory — provided they break key resistance zones. Traders are advised to adopt a stock-specific approach, while investors may find this an opportune time to accumulate on dips.