Nifty 50 Outlook for 21 May 2025

Market Summary

Nifty 50 closed sharply lower at 24,683.9 on 20 May 2025, down 1.05% (-261.55 points), reflecting broad-based selling pressure across sectors, particularly in autos and banking. The index opened near 24,996.2 but failed to hold above the 25,000 mark, which remains a crucial resistance level for any near-term bullish momentum.

Technical Analysis

• Support Levels: Immediate support lies at 24,800, with a further cushion at 24,500 and 24,400. A breach below 24,800 could lead to a deeper correction, possibly toward the 21-day EMA on the daily chart.

• Resistance Levels: The 25,000 mark is a significant resistance. Sustained trade above this level could open the path to 25,250–25,500.

• Indicators: The Relative Strength Index (RSI) has cooled off, suggesting the market is less overbought and could stabilize if support holds3. However, the advance-decline ratio is weak, indicating negative breadth.

Options Data

• Highest Call Writing: At 25,000, indicating strong resistance.

• Highest Put Writing: At 24,800, reinforcing this as an immediate support zone.

Sentiment and Global Cues

• Gift Nifty is trading 1.28% lower, pointing to a likely weak or bearish opening for Nifty on 21 May 2025.

• Market Breadth: Remains negative, with most sectors closing in the red. Autos led the decline, while select stocks in metals and pharma offered some resilience.

• Global Factors: Mixed global cues, including concerns over U.S. credit ratings and weak Chinese data, continue to weigh on sentiment.

Actionable Insights

• Short-term traders: Watch 24,800 for support. A breakdown below this could warrant caution or short positions, while a bounce from this level could offer a quick trading opportunity toward 25,000.

• Investors: The broader trend remains positive, but near-term volatility is likely. Consider accumulating quality stocks on dips, especially in resilient sectors like metals and pharma.

• Sector Watch: Autos and banks are under pressure; metals and select pharma stocks are showing relative strength.

Key Levels for 21 May 2025

Support	Resistance
24,800–24,400	25,000–25,500

Outlook:
Expect a cautious to bearish start. Sustained trade below 24,800 may lead to further downside, while a move above 25,000 is needed for bullish momentum to resume.