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Below the Market Commentary (closing) for 29th May 2026 by Bajaj Broking Ltd

Market Closing Commentary

Benchmark equity indices ended sharply lower on May 29, with the NIFTY 50 slipping below the 23,600 mark amid broad-based selling pressure across sectors. Investor sentiment remained cautious following the IMD’s monsoon forecast at 90% of the Long Period Average (LPA), while a rise in India VIX reflected heightened market volatility. Selling pressure intensified during the final hour of trade due to MSCI rebalancing-related adjustments.

At the closing bell, the Sensex declined by 1,092.06 points or 1.44% to settle at 74,775.74, while the Nifty tumbled 359.40 points or 1.50% to close at 23,547.75.

On the sectoral front, almost all sectors ended in the red, reflecting widespread profit booking and a risk-off sentiment. Major weakness was witnessed in Nifty Oil & Gas, Metal, Auto, and Healthcare stocks. The only pocket of resilience was seen in the Nifty IT index, which outperformed the broader market.

Broader markets also witnessed profit booking after the recent sharp up move. The Midcap index corrected around 1.33%, while the Small cap index declined nearly 0.85%

Nifty Outlook                            

Index in a daily chart formed a strong bearish candlestick pattern with shadow on either side indicating selling pressure from the 50 days EMA.

Index contrary to expectation breached the recent breakout area of 23,800 and closed below the 23,600 levels. Going ahead, a follow through weakness in the coming sessions will signal extension of decline towards the recent low of 23,262 levels. While 50 days EMA will continue to act as key resistance placed around 24,000 levels. 

Overall Nifty is likely to consolidate in the range of 23,200-24,000. With key support placed at 23,000-23,200 levels 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 bearish candle with a lower high and a lower low highlighting selling pressure at higher levels as the index closed below the 20 days EMA.

Index has immediate support at 54,000 levels, failure to hold above 54,000 will signal extension of the consolidation. While major 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 (49955-57456).

On the higher side current week high of 55,536 will act as immediate hurdle for the index.

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