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Nifty 50 and Sensex fell last week while the Nifty Bank index remained stable and range-bound.
Nifty 50 and Sensex witnessed an intraday week fall of over 2 per cent. However, on Friday the indices managed to rise back well recovering most of the loss. This bounce-back is very significant as it has happened from an important support. A strong follow-through rise from here can take the Sensex and Nifty higher going forward.
Nifty Bank index on the other hand indicates a bullish pattern formation on the chart. A strong rise and a breakout in the coming days will confirm the same. That in turn can take the Nifty Bank index to new highs in the coming weeks.
Overall, the bullish structure on the charts remain intact. We can expect the Sensex, Nifty 50 and the Nifty Bank index to rise more going forward.
Among the sectors, the BSE Realty index outperformed by rising 2.54 per cent. The BSE Auto index was beaten down the most. The index fell 2.18 per cent.
The Foreign Portfolio Investors (FPIs) snapped their five-week buying streak last week. They sold about $560 million in the equity segment. That brings down the new inflows into the equity segment to $1.64 billion for the month of May.
Nifty failed to get a strong follow-through rise above 25,000 and fell last week. It touched a low of 24,462.40 and reversed higher recovering most of the loss. The index has closed the week at 24,853.15, down 0.67 per cent.
Short-term view: The bounce last week has happened from the 21-Day Moving Average support, currently at 24,540. Immediate resistance is in the 24,950-25,000 region. A strong break above 25,000 can boost the momentum. Such a break can take the Nifty up to 25,500-25,800 in the next few weeks. That will also keep the doors open to see 26,000 and higher levels in the short term.
Failure to breach 25,000 can keep the chances alive of seeing one more leg of fall to 24,300-24,250. After this fall, the aforementioned rise to 25,000 and higher levels can happen.
Chart Source: TradingView
Medium-term view: The broader bullish view remains intact. Nifty can target 28,000-28,500 in the coming months. From a long-term perspective, Nifty has the potential to see 31,000 on the upside over the next one year.
Supports are at 24,000-23,700, 22,800 and then at 21,650. Nifty has to fall below 21,650 to negate this bullish view.
Nifty Bank index remained stable and range-bound last week. The index has closed the week on a flat note at 55,398.25.
Short-term view: The outlook is bullish. The price action on the daily chart indicates an inverted head and shoulder pattern formation. Resistance is in the 55,700-56,000 region. A strong break above 56,000 will confirm this pattern. It will then take the Nifty Bank index up to 57,500-58,000 or even 58,500 in the coming weeks.
Support is in the 54,000-53,500 region. Below that, 52,400 will be the lower support. The outlook will turn negative only on a break below 52,400. But we expect the Nifty Bank index to sustain above the 54,000-53,500 support zone itself.
Chart Source: TradingView
Medium-term view: The broader bullish view is intact. Nifty Bank index can target 61,000 in the coming months.
We repeat that a corrective fall to 56,000 from around 58,000-58,500 is a possibility before the index targets 61,000.
Sensex fell to a low of 80,489.92 and then has bounced back from there. It has closed the week at 81,721.08, down 0.74 per cent.
Short-term view: The outlook is bullish. Resistance is there in the 82,500-83,000 region. A break above 83,000 can take the Sensex up to 83,700-84,000 in the coming weeks.
Failure to breach the 82,500-83,000 resistance zone will keep the chances of seeing one more leg of fall to 79,500 or 79,000. After this fall, the rise to 83,000 and higher levels can occur.
Chart Source: TradingView
Medium-term view: The bullish view of seeing 85,000-86,000 on the upside remains intact. Supports are at 79,000 and 77,000.
Over the long term, Sensex can target 90,000-92,000 in the next one year.
The US benchmark indices fell last week. The Dow Jones Industrial Average, NASDAQ Composite and the S&P 500 indices were all down over 2 per cent each. Trump’s tariff threats kept the sentiment nervous. However, the fall last week has not changed the structure of the charts. Supports are there to limit the downside and keep the bias positive.
The Dow Jones has room to see 41,150 or 40,900-40,800. But thereafter we can expect it to reverse higher and rise towards 42,000-43,000 again. Such a move will indicate an inverted head and shoulder pattern formation.
Chart Source: TradingView
In that case, a break above 43,000 will confirm this pattern and take the Dow up to 45,000 initially. It will also keep the doors open for the Dow to target 48,000 eventually.
The bullish view will go wrong if the Dow declines below 40,800. In that case, it can fall to 40,000-39,800.
Chart Source: TradingView
The S&P 500 index has supports in the 5,770-5,740 region. A bounce from this support zone can take it up to 5,900 again. It will also keep the broader bullish view intact to see 6,250-6,330 on the upside.
In case the index declines below 5,740, it will come under more selling pressure. A fall to 5,650-5,630 can be seen in that case.
Chart Source: TradingView
The NASDAQ Composite index can see some more dip this week. Support is around 18,400 which can be tested. A bounce-back thereafter can take the index back to 19,200-19,250. An eventual break above 19,250 can take the NASDAQ Composite index up to 20,000-20,100.
If the index declines below 18,400, an extended fall to 18,000 can be seen.
Published on May 24, 2025
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