Market Outlook for Tuesday May 27: Nifty Reclaims 25K, Bulls Eye 7-Month High
As global cues align positively, Indian markets are set for a strong start on Tuesday. With US markets shut on Monday for a holiday and European markets closing positive, sentiment points toward a bullish opening for Indian indices.
On Mondays session, the benchmark index surged by 148 points, closing at 25,001.15, marking its first close above the 25,000 mark in five sessions and nearing a 7-month high.
Sector Highlights
- All sectors finished in the green.
- Top gainers: Auto and IT, both rising over 1%.
- Outperformers: Metals, Energy, and Realty sectors, which beat the broader market.
- Mild underperformers: Healthcare, PSU Banks, Bank Nifty, CPSE, Pharma, Infra, and Oil & Gas sectors showed positive but softer moves.
Market Breadth
- 76% of Nifty 50 stocks ended higher.
- 64% of Nifty 500 stocks also closed in the green.
- Technical strength was evident, with 84% of stocks in both indices trading above their 50-day EMA and over 78% above their 20-day EMA.
Technical Outlook
Momentum is building, but the key hurdle remains near 25,100. On Monday, the index formed a small-bodied candle on the daily chart, reflecting some hesitation despite early session strength.
- If the index breaks above 25,100, we could see an extension of gains toward the 25,250–25,400 levels.
- Support levels: Immediate downside support is seen at 24,900–24,850.
With positive global cues and broad-based domestic buying, bulls appear firmly in control. Traders will watch for a decisive breakout in the next few sessions.