Market Commentary (closing) for 26th May 2026 By Bajaj Broking
Market Closing Commentary
Indian benchmark indices closed on a negative note during the monthly expiry session on 26 May, as selling pressure intensified in the second half of the session. Market sentiment turned weak amid a pullback in crude oil prices following rising tensions during the peace talks between the US and Iran. Sustained pressure in heavyweight stocks dragged the Nifty below the 24,000 mark at closing.
At close, the Sensex declined 479.26 points or 0.63% to settle at 76,009.70, while the Nifty fell 118 points or 0.49% to close at 23,913.70. On the sectoral front, weakness was largely witnessed in Nifty Consumer Durable, Private Bank, and Realty indices, which dragged the benchmark lower. However, selective buying interest was observed in Nifty Metal, FMCG, and Auto stocks, while the rest of the sectors traded with a mixed bias.
Despite the weakness in frontline indices, the broader market continued to witness buying interest. Nifty Midcap index touched a fresh all-time high and closed with gains of 0.54%, while the Smallcap index also advanced by 0.35%, indicating continued participation in the broader market space
Nifty Outlook
Index in the daily chart formed a bearish candlestick pattern signaling lack of follow through buying to previous sessions strong up move, as the index gave up some of its Monday’s gains and closed below the 50 days EMA. Nifty on Monday’s session has generated a breakout above the last 9 sessions trading range of 23,200-23,850. Index is currently seen testing the upper band of the breakout area. Going ahead, index sustaining above the Monday’s gap area (23,835-23,922) will keep the bias positive and will open further upside towards 24,200-24,300 levels in the coming sessions being the trendline resistance joining the highs of April & May 2026. Index has immediate support at 23,600 levels, failure to hold above 23,600 will signal extension of the consolidation. While major short term support is placed at 23,200-23,000 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601).
Bank Nifty Outlook
Index in the daily chart formed a high wave candle with a small real body and shadows in either direction signaling consolidation amid stock specific action on the monthly expiry sessions after previous two sessions strong up move. Bank Nifty on Monday’s session has generated a breakout above the falling supply line joining the recent highs and the last 9 sessions consolidation range (54,400-52,800) signaling strength. Index sustaining above the Monday’s gap area (54,055-54,590) will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions being the measuring implication of the recent consolidation range.
Index has immediate support at 54,000 levels, failure to hold above 54,000 will signal extension of the consolidation. While major short term support is placed at 53,000-52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601).
