The Indian stock market is poised for a positive start on Thursday, tracking optimistic signals from global peers. The GIFT Nifty, trading around the 24,843 mark, hints at an upbeat opening for the Nifty 50, showing a premium of nearly 80 points over its previous close.
Global Sentiment Boosts Market Mood
Investor sentiment received a boost after a ruling by the U.S. Court of International Trade in Manhattan, which barred former President Donald Trump from using emergency powers to impose tariffs. This legal decision lifted global market sentiment, potentially supporting a rebound in domestic equities.
Market Recap: May 28
On Wednesday, Indian benchmark indices extended their decline for the second straight session. The Sensex slipped 239.31 points or 0.29% to end at 81,312.32, while the Nifty 50 dropped 73.75 points or 0.30%, closing at 24,752.45. The Nifty formed a modest bearish candle on daily charts, reflecting sustained selling pressure and market indecision.
Sensex Outlook
The Sensex moved within a narrow band of 81,200 to 81,600 in the previous session and closed with a small bearish candlestick, indicating uncertainty between bulls and bears.
“The intraday sentiment appears neutral, awaiting a clear breakout. A move above 81,600 may drive the index toward 82,100–82,500, while a slide below 81,200 could invite selling pressure down to 80,800–80,400,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50: Key Technical Levels and Market View
The Nifty 50 has faced repeated rejection near the 25,000 mark, forming a double-top pattern. It continues to trade under its 9-day exponential moving average (EMA) and is approaching the 20 EMA, signaling weakness at higher levels.
“The index has not broken its recent swing low of 24,460 yet, but risks remain. If the downtrend continues, the 23.6% Fibonacci retracement at 24,312 may act as key support,” noted Om Mehra, Technical Research Analyst at SAMCO Securities.
“Only a breakout above 25,000–25,020 will reaffirm bullish momentum,” Mehra added.
Meanwhile, Hrishikesh Yedve from Asit C. Mehta Investment Intermediates pointed out that the Nifty is still trading above its 21-day EMA at 24,570. Holding above this level could lead to a short-term bounce. Resistance is seen near the 25,000–25,100 zone.
Dr. Praveen Dwarakanath of Hedged.in echoed a range-bound outlook, saying the index remains confined between 24,500 and 25,150. He views the recent dip as a buying opportunity, as hourly stochastics indicate an oversold condition with potential for a rebound.
Nifty Derivatives Data
Open interest data highlights the highest call OI at the 25,000 strike and the highest put OI at 24,500, suggesting a likely trading range of 24,500–25,000 in the near term.
Bank Nifty: Supportive Trend with Resistance Ahead
The Bank Nifty added 64.20 points or 0.12% to settle at 55,417 on Wednesday. It formed a small green candle on the daily chart, showing resilience within a tight trading band.
“The index remains within a four-week consolidation zone of 53,500–56,000. A breakout above 56,000 may open the door to 56,700 levels,” stated analysts at Bajaj Broking.
Immediate support lies at 54,800, with stronger support at 54,000–53,500, based on retracement levels and the 50-day EMA.
Om Mehra highlighted that the Bank Nifty continues to respect its rising trendline and the midline of the Bollinger Bands. “Resistance lies around the 55,900 mark. A breakout above this level could lead to new highs,” he added.
Hrishikesh Yedve also emphasized that the index maintains strength above its 21-day EMA at 54,830. As long as this level holds, a move toward the 56,000–56,100 resistance zone remains possible.
Markets are expected to open on a firm note, supported by positive global cues and technical indicators pointing to potential rebounds. However, traders should remain cautious and watch key resistance and support levels closely, especially around 25,000 for the Nifty and 56,000 for the Bank Nifty, which may determine the next directional move.
