Stock market outlook: Can Nifty 50 break 25k level hurdle? Key levels to watch out this week

Indian stock market: Both Indian indices – Sensex and Nifty 50 – ended the last week of May on a lower, making it second consecutive week to close in red.

The BSE benchmark dropped by 270.07 points, or 0.33%, while the Nifty slipped 102.45 points, or 0.41%. The market closed the week on a cautious note, reflecting a muted performance influenced by persistent global trade tensions and uncertainty over upcoming domestic policy decisions.

On Friday, both indices ended lower after a mostly range-bound session, weighed down by declines in IT stocks and weak cues from Asian markets amid trade uncertainty sparked by a U.S. appeals court’s temporary reinstatement of reciprocal tariffs.

The 30-stock BSE Sensex fell by 182.01 points, or 0.22%, closing at 81,451.01. Meanwhile, the NSE Nifty slipped by 82.90 points, or 0.33%, to end the day at 24,750.70. In contrast, the Bank Nifty index outperformed the broader market, rising by 0.63% to finish at 55,749, boosted by robust gains in the banking sector.

“Nifty ended the week on a jittery note, while Bank Nifty offered a silver lining with a 0.63% gain, led by SBI’s 2.76% surge. Volatility is expected to persist as both buyers and sellers remain cautious; technically, Nifty turns bullish only above 25,116, with key support at 24,363. Market turbulence looms amid escalating US-China trade tensions, with President Trump accusing China of violating their agreement. Eyes now turn to the RBI’s rate decision on June 6 and rising COVID-19 cases, with hopes pinned on Bank Nifty and short covering to push Nifty past the 25,000 mark,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Key levels to watch out this week

Nifty 50

According to brokerage firm Choice Broking, Nifty is consolidating within the 24,600–25,050 range in technical terms. On the downside, 24,600 remains strong support, with further buying expected near 24,400. RSI at 55.52 is dipping, hinting at waning bullish momentum.

“Stay range-bound with a bullish bias. Buy on dips near 24,600–24,400 and trail profits above 24,900. Major breakout or breakdown expected only on clear triggers. Keep risk tight and positions light ahead of key macro events,” the brokerage firm said.

Support Levels: 24600-24400

Resistance Levels: 25000-25200

Bank Nifty

The Bank Nifty index closed at 55,749.70, registering a 0.63% gain from the previous week’s close. The weekly chart indicates buying from lower levels; notably, the index has managed to hold above the crucial 55,700 mark.

“This buying interest suggests a potential continuation of bullish sentiment, with strong demand emerging on dips, pointing to a sideways to bullish phase in the near term,” Choice Broking said in a note.

According to the brokerage firm, the Bank Nifty index is likely to face significant resistance in the 56,000–56,500 range. If the index continues to move higher, HDFCBANK from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, State Bank of India, Bank of Baroda and Bank of India is anticipated to show strength.

‘Traders are advised to remain cautious, adopt a “buy on dips” approach, and maintain strict stop-loss levels to manage risks effectively amid ongoing market volatility and potential price fluctuations,” it said.

Bias- Sideways to Bullish

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