D-Street Ahead: The Indian stock market edged lower on Friday but logged a third straight monthly gain, supported by steady institutional inflows and earnings momentum despite geopolitical and trade concerns.
The Nifty 50 rose 1.7% in May to 24,750.70, while the BSE Sensex gained 1.5% to 81,451.01; both indexes are up around 12% since March but remain about 6% below their September 2024 record highs.
Sensex, Nifty, and Bank Nifty technical levels to watch
According to Ajit Mishra, SVP, Research, Religare Broking, after spending the last two weeks in a consolidation phase, the Nifty is expected to soon make a directional move. Holding above the 20-day exponential moving average (20-DEMA), currently around 24,600, will be essential to maintain a positive tone.
A decisive breach of this level could trigger further profit-booking, dragging the index down toward the 24,200 mark. Conversely, a strong close above 25,200 could rekindle bullish momentum and open the path toward the 25,600+ zone.
“We continue to believe that the banking index holds the key to unlocking market momentum. It has been trading within a narrow range for over a month while sustaining above its short-term support at 55,000 (20-DEMA). A breakout above 56,000 could act as a catalyst, propelling the index toward the 57,500 level,” he said.
D-Street trading strategy for next week
Ajit Mishra of Religare Broking maintains his constructive view on the markets and recommends looking for buying opportunities unless the Nifty decisively breaks below the 24,600 mark. Within sectors, banking and financial services remain our top picks, while FMCG and IT are expected to trade subdued.
With the broader market showing resilience, investors should continue focusing on fundamentally strong stocks that offer a favorable risk-to-reward ratio. Staying agile and informed amid evolving macroeconomic and policy developments will be crucial for navigating the near-term market landscape.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
