Want a good start to your trading week? Here’s a brief and concise overview of what to expect in the Indian stock market before the bell on May 26.
Market Snapshot
Markets finished strong last week. Sensex and Nifty both closed higher on Friday with upward momentum that can be extended today. Traders will be looking to see if this rebound is sustained.
Nifty Levels to Watch
- Resistance: Near 25,000 – a psychological and technical barrier.
- Support: Keep an eye out for a floor at 24,700. If that is breached, 24,460 will be tested.
Remaining above 25,000 might initiate a new rally.
Bank Nifty Outlook
Banking stocks showed strength, and the Bank Nifty held firm.
- If it can stay above 54,550, it could move toward 55,800.
- Support is around 55,000 — a level traders are eyeing for stability.
Options Market Sentiment
The options data indicates the market is looking for a range of trade between 24,000 and 25,000 on the Nifty, where there is heavy interest in these strike prices. It means most traders are taking bets the market will remain within these ranges.
Put-Call Ratio (PCR)
This PC ratio increased slightly — an indication that traders are more bullish than before. It’s not extremely bullish yet, but things are looking up.
Global Trends
Global markets closed lower last week on fears of inflation and increased US government debt. This may result in a cautious beginning in India despite the gains last week.
FII and DII Activity
FII investors were high net buying last week — a good sign. Domestic funds too sustained their buying run, supporting the market.
Currency Movement
The rupee also strengthened well, which contributes to the positive atmosphere in equities. A stronger rupee saves on import bills and indicates faith in the economy.
Crude Oil Watch
Oil prices firmed up on Friday. If the upward trend continues, it may dampen energy-intensive segments like airlines and logistics.
Gold Glitters
Gold prices are creeping up once more, a classic sign that international investors are turning to safety.
Bitcoin Buzz
Bitcoin made new highs and then backed off. Crypto traders are on a roll of optimism, but the market is volatile.
Stocks of Note Today
A couple of companies may make a move today based on new developments:
- One company paid off a significant financial liability.
- Another finalized a large overseas acquisition.
- A large pharma player opened a new consumer-oriented business unit.
Stock to Watch: Infrastructure
Infrastructure and energy stocks could witness activity following recent news and government thrust in these sectors.