D-Street Ahead: Nifty & Sensex Technical Outlook for Next Week (May 26–30, 2025)

D-Street Ahead: How Will the Indian Stock Market Move Next Week? Key Technical Calls for Nifty, Sensex

By ASJ Ventures | May 23, 2025

As we approach the final week of May 2025, investors are keenly observing the Indian stock market's movements to strategize their portfolios. The Nifty 50 and BSE Sensex have shown resilience amid global uncertainties, but what lies ahead? Let's delve into the technical landscape to gauge potential market directions.

Market Recap: A Week of Consolidation

The Indian equity benchmarks experienced a mixed week. On Friday, the Nifty surged by 300 points, reflecting a boost in investor sentiment. Despite this strong rally, Indian stock markets showed an overall lack of clear direction throughout the week.

Technical Analysis: Nifty & Sensex

Nifty 50

• Current Level: Closed at 24,609.70 on May 23, 2025.

• Immediate Resistance: Analysts project that the Nifty index is likely to continue its upward momentum in the short term, driven by easing geopolitical tensions, strong foreign institutional investor (FII) inflows, and broad-based participation across sectors. The technical outlook suggests potential upside targets between 25,200 and 25,800, provided the index holds above the 24,800 support level.

• Support Levels: Key short-term support lies at 24,350 - 24,400, a confluence zone marked by the prior week’s low, the 20-day EMA, and the 61.8% Fibonacci retracement of the recent upswing.

BSE Sensex

• Current Level: Closed at 80,951.99 on May 23, 2025.

• Resistance Levels: The Sensex faces immediate resistance at the 81,500 mark, with further hurdles near 82,000.

• Support Levels: Strong support is observed around 80,000, with a breach potentially leading to 79,500.

Sectoral Trends: What's Hot and What's Not

• Information Technology (IT): The IT sector rebounded 1.8% after previous losses, indicating renewed investor interest.

• Consumer Goods: Consumer stocks climbed 1.8%, with ITC leading the gains, reflecting strong demand in the sector.

• Pharmaceuticals: The pharma index declined 0.5%, with Sun Pharma falling 3.3% following reduced earnings forecasts.

Expert Insights: Navigating the Week Ahead

Market experts suggest a cautious yet optimistic approach for the upcoming week:

• Sandip Sabharwal, a seasoned market expert, predicts a continued upward trajectory in the stock market in the near term. He suggests that while the market currently enjoys positive momentum, driven by strong investor sentiment and favorable economic indicators, this trend may not be sustainable in the long run.

• Rahul Ghose indicates that the Indian stock market exhibited a strong recovery this week, with the Nifty 50 index surging over 1,000 points to surpass the key 25,000 mark, reversing losses incurred since October 2024. This rally is largely attributed to the positive global sentiment following the celebrated US-China trade deal.

Trading Strategies: Making Informed Decisions

Given the current market dynamics, traders and investors might consider the following strategies:

• For Nifty:

  • Bullish Scenario: If Nifty sustains above 24,800, consider long positions targeting 25,200–25,800.

  • Bearish Scenario: A drop below 24,600 could lead to a decline toward 24,200.

• For Sensex:

  • Bullish Scenario: Sustaining above 81,500 may open doors to 82,000–82,500.

  • Bearish Scenario: Falling below 80,000 could test 79,500 levels.

Balancing Optimism with Caution

The Indian stock market exhibits a cautiously optimistic outlook for the upcoming week. While technical indicators suggest potential upward movements, investors should remain vigilant of global cues and sector-specific developments. Employing disciplined trading strategies and staying informed will be key to navigating the market effectively.