The Indian stock market is expected to open on a flat note on Wednesday, May 28, 2025, following a volatile session on Tuesday where both the Nifty 50 and Sensex closed lower.
Global Cues and GIFT Nifty:
- GIFT Nifty futures were trading slightly lower, suggesting a muted start for the Indian benchmark indices.
- Asian markets are showing positive momentum, mirroring gains on Wall Street. This follows after U.S. President Donald Trump extended the deadline for a 50 per cent tariff on European Union imports to July 9.
- US futures are little changed ahead of key earnings from Nvidia and the release of minutes from the Federal Reserve's May policy meeting.
Market Performance on May 27, 2025:
- The Nifty 50 index closed 0.70% lower at 24,826.20.
- The Sensex fell 0.76% to close at 81,551.63.
- Broader markets outperformed, with the BSE Midcap and Smallcap indices rising.
Key Factors Influencing the Market:
- Global Sentiment: Positive momentum in European markets and surging U.S. futures could lift sentiment in the Indian market.
- FII/DII Activity: On May 27, Foreign Institutional Investors (FIIs) net bought shares, while Domestic Institutional Investors (DIIs) were also net buyers for the sixth consecutive day.
- Technical Levels:
- Nifty 50 is expected to find support around 24,700, with resistance at 25,000–25,100. A decisive move above 25,116 would bring back bullish momentum.
- Sensex has key support at 81,100 and resistance at 82,200. A break below 81,000 could lead to further downside, while a successful breach of 82,200 could push the index higher.
- Bank Nifty is facing resistance near 56,000–56,100, with support around 54,776.
Analyst Recommendations:
- Experts suggest that the Nifty has been finding it difficult to cross the 25,116 resistance, continuing its choppy trend.
- Analysts advise traders to watch for a confirmed breakout before making significant moves, as range-bound action is likely to continue.
- One should sell near high and buy near low until Nifty gives a breakout from the range of 24500 to 25150.
Stocks to Watch:
- Stocks like Shankara Building Products Ltd, Hitachi Energy India Ltd , Chambal Fertilisers & Chemicals Ltd, Bharat Electronics Ltd, ICICI Bank Ltd, HFCL Ltd and Welspun Corp Ltd are recommended by experts.
Overall Market Outlook:
The Indian stock market is currently experiencing high valuations, but strong domestic flows and a stable macroeconomic environment are expected to provide support. While global factors and Q4 results will be closely monitored, the long-term outlook for the Indian equity market remains positive, with potential for continued growth in the coming years.
