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Nifty :24032

Technical Outlook

Indian equity benchmarks ended the day on a strong note as optimism around US-Iran peace deal has resulted into cool off in crude oi prices along with appreciation in rupee that boosted the market sentiment and propelled the Nifty up by 312 points to settle at 24,031. Market breadth favoured bulls with a 2:1 A/D ratio, while the broader Nifty Midcap and Smallcap indices gained 0.90% and 1.40% respectively. Buying was highly broad-based across the board, leaving FMCG as the sole major laggard while BFSI, Auto, Realty, and Chemicals emerged as the session's top-performing sectors. Technical Outlook:

• Starting the week with a positive gap-up, the index extended its upward momentum to decisively reclaim the 24,000 psychological mark. The daily price action resulted in a bullish breakaway candle with a higher high-low formation, indicating end of corrective bias.

• The Nifty has staged a decisive breakout above its recent contracting consolidation range of 23,100-23,800. By reclaiming its 50-day (EMA) after 10 trading sessions, the index signals a revival of its primary uptrend. This positive momentum is expected to resolve higher in the coming weeks and head towards 24,500 level to test the previous multiple swing highs recorded on April 21 and May 7, 2026.

• While intermittent bouts of volatility are expected to remain elevated ahead of the monthly derivatives expiry and the ongoing corporate earnings season, the structural bias remains positive. Investors should utilize this volatility to accumulate quality stocks backed by strong earnings growth. Reflecting this underlying strength, technical support has now been revised upward to 23,400, which represents a crucial 80% retracement of the current up-move (23,262–24,038) and aligns with the recent swing low formed on 20th May 2026.

• Broad-market indices are mirroring this bullish rotation. Following a three-week consolidation phase, the Nifty Midcap index has successfully resumed its upward trajectory and is currently trading near its all-time high. Meanwhile, the Smallcap index has witnessed a revival in trend after forming a higher base in the vicinity of its 52-week EMA.

• We expect broader market to relatively outperform the large caps as the ratio chart of Nifty 500 vs Nifty 100 has been inching upward, confirming sustained outperformance of the broader market backed by improving market breadth. Amidst geopolitical uncertainties, currently 74% of Nifty 500 stocks are trading above their 50 days SMA compared to last week’s reading of 68%.

Key Monitorable:

• Adding a structural tailwind to Indian equities, Brent crude oil has broken down below its one-month rising trendline support. This accelerating decline in global crude prices is highly beneficial for a major importing nation like India.

• The pair of USD/INR approached the extreme overbought reading of 84 (highest since 2002). Further, Gravestone Doji candle on the weekly chart signifies, potential trend exhaustion and an impending reversal in favor of the Rupee.

• US and India GDP data

Intraday Rational:

• Trend – Breakout from consolidation range indicate resumption of upmove

• Levels - Buy around 80% retracement of yesterday range

Nifty Bank : 55294

Technical Outlook

Day that was: Optimism over US-Iran peace deal boosted market sentiment that helped Bank Nifty Index to gain 2.4% and closed at 55294. Nifty PSU Bank relatively outperformed gaining 3.1% at 8256 levels.

Technical Outlook:

• Index started the week with gap-up opening and continued to inch northwards wherein intraday declines were bought into. The daily price action resulted into strong bull candle with rising gap (54590-54213), indicating elevated buying demand.

• Index has witnessed breakout from consolidation range with breakaway gap . Key point to highlight is that, Index has close above its 20-day EMA after 20 sessions and reclaimed past two weeks high (55000) indicating revival in upward momentum. Going ahead, we expect index to continue upward momentum and head towards 56500 being 80% retracement of recent decline

• Post consolidation breakout, formation of higher high-low signifies improvement in structure makes us revise support at 53800 being 61.8% retracement of current rally (52780- 55405)

• Nifty PSU Bank formed weekly higher high higher low and rebounded taking support at 7800. The sustainability above 7800 mark signifies supportive efforts at key support zone that would eventually help index to stage a recovery going ahead

Intraday Rational:

• Trend- Breakout from consolidation range indicate resumption of upmove

• Levels- Buy around 80% retracement of yesterday range

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