Nifty 50, Bank Nifty May Witness Mild Profit Booking on F&O Expiry Day Amid Consolidation Following Monday's Rally

Market Outlook: Bulls Maintain Upper Hand as Nifty and Bank Nifty Continue to Rally

The Indian market is expected to see some consolidation after yesterday's sharp rally, but the overall trend remains positive as long as the index defends its key support level of 23,850. According to experts, holding above 23,850 can still maintain hope for upside toward 24,126 (immediate resistance), followed by 24,300-24,400.

Nifty 50 and Bank Nifty Rally

On May 25, the Nifty 50 soared 312 points (1.32 percent) to 24,032, while the Bank Nifty jumped 1,238 points (2.29 percent) to 55,294. Market breadth was dominated by bulls, as about 2,054 shares saw buying interest compared to 942 shares that were under pressure on the National Stock Exchange.

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Expert Analysis

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, believes that the Nifty has closed well above 24,000 level after a long time now and this strike had maximum open interest on the Call front. He suggests that buying Nifty Futures at the current market price (CMP) of 24,031 and adding on dips near 23,900, with a stop-loss below 23,800, targeting 24,400, 24,600, and 25,000.

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Jigar S Patel, Senior Manager - Equity Research at Anand Rathi, expects the index to continue its upward momentum in the coming sessions, as it has rallied nearly 730 points over the last five trading sessions. He suggests buying Nifty Futures on the pullback near 24,100-24,000, with a stop-loss of 23,700, targeting 24,600.

Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan, believes that the Nifty index signaled a strong bullish reversal during Monday's session. He suggests buying Nifty Futures at CMP or on dips, with a stop-loss at 23,600 on closing basis, and the upside targets are 24,482 – 24,600.

Bank Nifty Outlook

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities, believes that Bank Nifty has also managed to close well above 55,000 level, indicating that the bulls have an upper hand. He suggests buying Bank Nifty Futures at CMP of 55,293 and on dips near 54,500, with a stop-loss below 53,000, targeting 57,500.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi, expects the index to continue its positive momentum in the coming sessions, as it has broken above the key resistance level of 54,350 and sustained above it in Monday's session. He suggests buying Bank Nifty Futures on the pullback near 55,400-55,000, with a stop-loss of 54,350, targeting 56,800.

Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan, believes that the Bank Nifty index staged a sharp recovery on Monday after successfully filling its gap and rebounding from the 61.8 percent Fibonacci retracement level of its previous rally. He suggests buying Bank Nifty Futures at CMP or on dips, with a stop-loss at 54,200 on closing basis, and the upside targets are 56,334 – 57,456.