Nifty Eyes 25,000: Will Bulls Regain Control?
Key Technical Levels and Market Sentiment to Watch on May 28
Volatile session sees bulls and bears in tug-of-war
Markets witnessed intense volatility on May 27, with the Sensex swinging nearly 1,300 points, reflecting an active tug-of-war between bulls and bears.
- Heavy selling in auto, IT, and FMCG sectors cut short a two-day winning streak for the Nifty and Sensex.
- Despite the sharp swings, broader markets showed resilience, ending marginally higher in a choppy trading session.
Institutional flows offer mixed signals
Foreign institutional investors (FIIs) net bought equities worth Rs 348 crore, signaling cautious optimism.
- Meanwhile, domestic institutional investors (DIIs) showed strong buying interest, purchasing Rs 10,104 crore, marking the highest single-day inflow since April 7, 2025.
- Year-to-date, FIIs remain net sellers with an outflow of Rs 1,20,510 crore, while DIIs have infused Rs 2,53,972 crore, supporting market stability.
GIFT Nifty hints at flat-to-negative start
GIFT Nifty indicates a muted opening near the 24,800 mark, slightly below the previous close.
- For the month, Nifty and Sensex are up 2% and 1.6%, respectively, reflecting steady momentum despite recent volatility.
Key technical levels: Support at 24,556; resistance near 25,100
The Nifty index formed a bearish candle on the daily chart on May 27, signaling short-term weakness.
- However, it remains above the 21-Day Exponential Moving Average (21-DEMA) at 24,556, a critical support level.
- A hold above this level could trigger a pullback rally, while resistance lies in the 25,000–25,100 zone.
“As long as Nifty holds above 24,556, a bounce-back can’t be ruled out,” noted Hrishikesh Yedve, AVP – Technical and Derivatives Research, Asit C. Mehta Investment.
Sensex in consolidation; breakout could trigger upside
The Sensex tested the upper band of its four-week consolidation range between 55,800 and 56,000.
- Analysts expect continued range-bound movement between 53,500 and 56,000 in the near term.
- A breakout above 56,000 may open up potential upside towards 56,700, supported by a shallow 38.2% retracement of its earlier rally.
- Immediate support is seen at 54,800, with short-term support in the 54,000–53,500 range, aligning with key moving averages and retracement zones.
Market mood shifts: PCR and VIX signal caution
The Put-Call Ratio (PCR) dipped to 0.82 from 1.06, pointing to a shift towards a more bearish market sentiment.
- A PCR below 0.7 suggests an uptick in Call writing, which reflects cautious to negative sentiment.
- The India VIX continued its upward climb, rising 2.86% to 18.54, indicating elevated volatility and trader nervousness.
Outlook: Cautious optimism with eye on 25,000
While technical indicators reflect short-term caution, strong DII inflows and resilient broader markets hint at underlying strength.
- Watch for support near 24,556 and resistance between 25,000–25,100.
- Sustained momentum above resistance could confirm bullish continuation, while a break below key support may lead to further downside.
In summary, reclaiming the 25,000 level on the Nifty hinges on stability in global cues, supportive institutional flows, and a steady VIX—making May 28 a key day to monitor directional strength.
