annashay 
Nifty, Nifty Bank and Sensex failed to sustain higher after opening the week on a positive note. They fell back and remained stuck in a narrow range all through last week. Nifty and Sensex were down marginally while Nifty Bank managed to close the week slightly higher.
The price action over the last two weeks indicate that the Indian benchmark indices are waiting for a trigger to push them higher. There is no change in the broader bullish view. We suggest traders and investors to stay on the long side of the market.
Among the sectors, the BSE Capital Goods index, up 2.66 per cent, rose the most. The BSE FMCG and the BSE Metals indices fell 1.7 and 1.16 per cent respectively.
FPIs buy
Foreign Portfolio Investors bought Indian equities last week. The equity segment saw a net inflow of about $705 million. The month of May has seen a total inflow of $2.34 billion.
Video Credit: Businessline
Nifty 50 (24,750.70)
Nifty failed to get a strong follow-through rise above 25,000 last week. It touched a high of 25,079.20 on Monday and then fell giving away all the gains. Broadly, the index remained stable and in a narrow range in the second half of the week. It closed the week at 24,570.70, down 0.41 per cent.
Short-term view: The bias remains positive. Supports are at 24,670 – the 21-Day Moving Average (DMA) and then at 24,470. Resistance is around 25,100. The outlook remains bullish. So, we expect the Nifty to breach 25,100. Such a break can take it up to 25,700-25,800 initially and then to 26,000 eventually in the short term.
In case the Nifty declines below 24,470, it can fall to 24,000 first. Thereafter it can rise back again towards 25,000 and higher.
If this fall to 24,000 happens, do not panic, it can be a good buying opportunity.
Chart Source: TradingView
Medium-term view: There is no change in the broader bullish view. We reiterate that Nifty can target 28,000-28,500 possibly in the next couple of quarters. From a much bigger picture, there is potential for Nifty to target 31,000 over the next one year.
The region between 24,000 and 23,700 will now be a very strong support which can limit the downside from here. Below that 22,800 and 21,650 are much lower supports for the Nifty.
Nifty Bank (55,749.70)
Nifty Bank index is holding well above 55,000. It has closed the week at 55,749.70, up 0.63 per cent. The price action last week indicates that it is attempting for a fresh rally from here.
Short-term view: The outlook is bullish with an inverted head and shoulder pattern formation on the chart. Immediate support is at 55,000. Resistance is in the 56,000-56,100 region. A strong break above 56,100 will boost the momentum. Such a break can take the Nifty Bank index up to 58,000 in the short term.
If the index declines below 55,000, a fall to 54,000 can happen first, and then it can rise back again.
Chart Source: TradingView
Medium-term view: The big picture remains positive. We retain our bullish view of the Nifty Bank index targeting 61,000 on the upside in the coming months.
Intermediate resistance is in the 58,000-58,500 region. A corrective fall from here to 56,000 is possible before the aforementioned rise to 61,000 happens.
Important supports to watch are 53,500 and 52,300.
Sensex (81,451.01)
Sensex is stuck in a sideways range over the last three weeks. The range of trade has been 80,480-82,700. Within this range, the index has closed at 81,451.01, down 0.33 per cent last week.
Short-term view: The immediate outlook is mixed. Immediate support is at 81,000. A break below it can drag the Sensex down to 80,500 and even 80,000. However, a fall below 80,000 is less likely. We can expect the Sensex to rise back from around 80,000 to 82,500-83,000.
Resistance is in this 82,500-83,000 region. A strong break above 83,500 is needed for the Sensex to go up to 84,300-84,500.
Broadly, the outlook is bullish to see a rise to 84,300-84,500 in the short term. But whether this rise will happen from here itself or after a dip to 80,000 is not very clear.
Chart Source: TradingView
Medium-term view: The big picture remains bullish to see 85,000-86,000 on the upside. This bullish view will remain intact as long as the Sensex sustains above the support at 79,000.
From a long-term perspective, Sensex has the potential to target 90,000-92,000 over the next one year.
US Market Outlook
The US markets are broadly oscillating in a range over the last three weeks. Within the range the benchmark indices have risen and closed in the green last week. The Dow Jones Industrial Average and the S&P 500 index were up 1.6 and 1.9 per cent respectively. The NASDAQ Composite index closed just over 2 per cent last week. The overall bias remains positive. As such we can expect the indices to break their current range on the upside and rise going forward.
Dow Jones (42,270.07)
Chart Source: TradingView
The bias is positive. The 21-Day Moving Average (DMA), currently at 41,865 is giving good support. There is a possible inverted head and shoulder pattern formation visible on the chart. The neckline resistance of this pattern is at 42,875. A break above it will confirm this pattern. Such a break will boost the momentum and take the Dow up to 45,000 in the coming weeks.
The near-term outlook will turn negative if the Dow declines below the 21-DMA support. In that case, a fall to 41,000-40,900 is possible. Thereafter, the index can bounce back again.
S&P 500 (5,911.69)
Chart Source: TradingView
The S&P 500 index is stuck between 5,765 and 5,970 over the last three weeks. Supports are at 5,750 and 5,700. The bias remains positive. As such we can expect the S&P 500 to break 5,970 in the coming days. Such a break can take the index up to 6,200 in the coming weeks.
The short-term outlook will turn negative only if the index declines below 5,700. If that happens a fall to 5,600 can be seen.
NASDAQ Composite (19,113.77)
Chart Source: TradingView
NASDAQ Composite index has risen well last week. The index touched an intraweek high of 19,389 and gave away some of the gains.
Immediate support is at 18,700. Below that, 18,400-18,200 is the next strong support zone. Resistance is at 19,450. The outlook is bullish. So, we can expect the index to breach 19,450. Such a break can take NASDAQ Composite index up to 20,000-20,100 in the coming days.
Published on May 31, 2025
