Nifty 50 Outlook for May 26, 2025

 

Nifty 50 Outlook for May 26, 2025

Summary:
The Nifty 50 is expected to open with a mildly positive bias but may remain rangebound between 24,700 and 25,000, with 25,000 acting as a strong resistance and 24,700–24,685 as immediate support. The overall trend remains constructive, but conviction for a strong directional move is lacking unless the index decisively breaks above 25,000

---

Key Technical Levels

Level	Value Range
Immediate Resistance	24,905 / 24,946 / 25,000 / 25,116
Immediate Support	24,700 / 24,685 / 24,679 / 24,610

·         The index closed at 24,853.15 on May 23, 2025, rebounding sharply from lower levels and forming a bullish candle on the daily chart

·         The 10-day EMA was reclaimed, and Nifty trades above all major moving averages, supporting a positive short-term view

·         RSI is near 60, signaling healthy momentum, though the MACD shows early signs of moderation

 

Market Sentiment & Options Data

·         Options positioning: Maximum Call OI at 25,000 and 25,500 strikes; maximum Put OI at 24,700, indicating a likely trading range between these levels

·         Put-Call Ratio (PCR): Remains strong, suggesting underlying support, but 25,000 is a psychological and technical hurdle

 

Expert Views & Strategies

·         Buy on dips, sell on rise: Until Nifty breaks above 25,000 with conviction, this remains the preferred approach

·         Breakout scenario: A decisive close above 25,000 may trigger a rally toward 25,250–25,350

·         Downside risk: A fall below 24,700 could invite further selling toward 24,460 or even 24,450

 

Broader Market & Sector Trends

·         Midcap and smallcap indices continue to outperform, with broad-based sector participation except for pharma

·         FMCG, banking, and IT sectors are leading; IT stocks, in particular, have shown resilience, with Infosys and Coforge highlighted as top picks

 

Event Watch

·         Investors are tracking quarterly GDP data releases for India and the US, as well as the final phase of the earnings season, which could add to volatility

·         No major domestic events are expected to significantly move the market, apart from global cues and macro data5.

 

Actionable Takeaways

·         Traders: Focus on the 24,700–25,000 range for intraday opportunities; look for a breakout or breakdown for directional trades.

·         Investors: The medium-term trend remains positive above 24,700; use dips for staggered buying in quality largecaps, especially in outperforming sectors.

·         Risk Management: Maintain stop-losses below 24,700 for long positions, and be cautious of false breakouts near 25,000.

---

In summary:
Nifty 50 is likely to consolidate between 24,700 and 25,000 on May 26, 2025. A sustained move above 25,000 could open the door for further gains, while a breach below 24,700 may trigger a deeper correction. Stay nimble and watch for confirmation before taking aggressive positions