Pre-Market Outlook: 15 Key Developments to Watch Ahead of the May 27 Market Open

Nifty 50 Snaps Two-Day Winning Streak, Closes Half a Percent Lower

The Nifty 50 index snapped its two-day winning streak and closed half a percent lower on May 26, failing to sustain above the 24,000 mark and the 50-day EMA on a closing basis due to profit booking. Despite this, the overall trend still favors the bulls, as the index stayed above the 20-day EMA (23,800) with a bullish crossover in the MACD.

Key Levels for the Nifty 50

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The index needs a decisive and sustainable close above the 24,000 zone for a further upward journey toward the 24,100 and 24,300 hurdles. However, trading consistently below this level may keep the market in a consolidative mode, with immediate crucial support placed at 23,800, followed by 23,600 as a sacrosanct support, according to experts.

Nifty 50 Analysis

The Nifty 50 formed a bearish candle with a minor upper shadow on the daily charts, indicating profit booking and the presence of resistance around the 24,100 level. The index could not sustain above the 50-day EMA after closing above it in the previous session, but it still held above the 10- and 20-day EMAs, both of which continued to incline upward. The RSI fell marginally to 51.51 from 54.35 but still sustained above the reference line. The MACD maintained a positive crossover, with further expansion in the histogram's green bars. All this indicates that the broader trend remains positive despite short-term consolidation.

Bank Nifty Analysis

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The Bank Nifty fell 0.36 percent and formed a bearish candle with a minor upper shadow on the daily timeframe, signaling profit booking amid consolidation after the previous day's sharp rally. Like the Nifty 50, the banking index also failed to sustain above the 50-day EMA, but the higher high-higher low formation remains intact. The index still held well above the previous day's low, as well as above the 10- and 20-day EMAs, both of which trended upward. The RSI tilted down to 53.17 but remained above the signal line. The MACD sustained its bullish crossover for another day, with the histogram's green bars expanding further. All this indicates that the banking index continues to maintain positive momentum despite near-term profit booking.

Options Data

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 1.07 on May 26, from 1.26 compared to the previous session. The increasing PCR indicates that traders are selling more Put options than Call options, generally indicating a firming up of a bullish sentiment in the market.

India VIX

India VIX fell below the 200-day EMA intraday before closing 3.41 percent lower at the 16.13 level, which is supportive for bulls and lowers uncertainty. An extended decline and sustained movement below the 15 zone can provide major comfort for bulls.

F&O Data

Stocks with High Delivery Trades and Rollovers

Here are the stocks that saw a high share of delivery trades and the highest rollovers on expiry day.