The Indian markets are expected to open on a positive note amid upbeat cues from global markets and signs of US-Iran peace deal boosted investor sentiments. GIFT Nifty also indicates a positive start, trading at 23,954 with a premium of 210 points from its previous Nifty futures close.
On Friday, the Sensex advanced 231.99 points or 0.31% to close at 75,415.35, while the Nifty 50 gained 64.60 points or 0.27% to settle at 23,719.30.
Foreign investors (FIIs) net sold shares worth Rs. 4,441 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 6,004 crore on May 22.
The rupee opened 35 paise higher at Rs. 95.34 per dollar, as compared to Rs. 95.69 per dollar in the previous trading session.
Technically, the Sensex formed a bullish candle on the weekly chart witnessing consolidation near the 50-day SMA.
“For positional traders, the 75,400 would act as an immediate support zone. As long as the market remains above this level, the positive sentiment may continue. On the higher side, 75,900 could act as an immediate resistance for the bulls. A sustained break above 75,900 could push the index to 76,400-77,000. A break below 75,400 could change the sentiment. Below this level, the index could retest the levels of 74,500-74,200. Downside may also continue, dragging it to 73,800," said Amol Athawale, VP of Technical Research at Kotak Securities.
The Nifty 50 formed a bullish candle during the week, with small shadows in either direction. Although the broader trend still reflects consolidation and corrective pressure.
"Going ahead, in the coming week failure to move above the breakdown area of 23,800-23,900, will keep the bias corrective and can lead to testing of the support area of 23,200-23,000. While a move above the breakdown area will signal a pause in the downtrend and open upside towards 24,200 & 24,600 levels being the high of April 2026," said Bajaj Broking Research.
Analysts believe the Nifty 50 must sustain above the 23,800-23,900 zone to confirm a reversal. On the downside, immediate support is seen between 23,200 and 23,000.
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On Friday, Bank Nifty gained 615.95 points or 1.15% to close at 54,055.35, forming a strong bullish candle on the daily chart. On the weekly timeframe, the index formed a bullish candle, signaling a potential shift in sentiment after the recent consolidation phase.
"Bank Nifty in the weekly chart formed a bullish candlestick pattern with a lower high and a lower low highlighting buying demand at lower levels from near the key support area of 52,400-52,700 levels. Index likely to consolidate in the range of 52,700-54,700. A move above 54,700 will open further upside towards 56,000 levels in the coming week," said Bajaj Broking.
"From a short-term perspective, a move above the recent breakdown area of 54,500-54,700 is required to signal a reversal of the corrective trend. Key support is placed at 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456)."