Indian Stock Market Outlook: Experts Predict Nifty 50 and Sensex Performance on May 27

Indian Stock Market Benchmark Indices Expected to Open Lower on Wednesday

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking a mixed trend in global markets, as investors remain cautious on uncertainty over the US-Iran peace deal.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nify was trading around 23,882 level, a discount of nearly 97 points from the Nifty futures' previous close. On Tuesday, the Indian stock market ended lower amid profit booking, with the benchmark Nifty 50 closing below 24,000 level.

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The Sensex fell 479.26 points, or 0.63%, to close at 76,009.70, while the Nifty 50 settled 118.00 points, or 0.49%, lower at 23,913.70.

Sensex Prediction

Sensex faced resistance near the 76,600 - 76,700 zone and witnessed profit booking from higher levels, indicating that traders remain cautious near resistance areas. Immediate support is now placed around 75,400 - 75,700, while resistance is seen near 76,700 - 77,000.

According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, the overall market bias remains cautiously positive as Sensex continues to hold above important support levels despite profit booking at higher zones. However, closing near the day's low suggests that traders may remain selective and cautious in the near term.

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Nifty 50 Prediction

Nifty 50 index formed a bearish candlestick pattern on the daily chart, signaling lack of follow-through buying to previous sessions strong up move. We believe that the 20-day SMA (Simple Moving Average) at 23,875 and 23,850 would act as crucial support zones for day traders. As long as Nifty 50 is trading above these levels, the uptrend remains intact.

According to Shrikant Chouhan, Head Equity Research, Kotak Securities, on the higher side, 24,100 could be the immediate resistance zone for the bulls. A dismissal of this level could push the Nifty 50 up to 24,200 - 24,250. On the flip side, he believes a break below 23,850 could lead the Nifty 50 index to slip towards 23,700 - 23,600.

Bank Nifty Prediction

Bank Nifty index ended 200.75 points, or 0.36%, lower at 55,092.90 on Tuesday, forming a small candlestick pattern on the daily chart, indicating some profit booking after the sharp two-day rally. According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the immediate resistance for Bank Nifty is placed in the 55,500 - 55,600 zone.

Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,000, followed by 56,400 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 54,700 - 54,600 zone.