The Nifty ends 175 points lower, while the Sensex was down by 625 points
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, May 27, 2025: Today, the benchmark indices experienced a volatile trading session. After a roller coaster activity, the Nifty ends 175 points lower, while the Sensex was down by 625 points. Among sectors, the Defense index outperformed, rallied over 1 percent, whereas intraday profit booking was seen in selective Auto, Banking, and IT stocks. After an initial fall, the market bounced back sharply, but once again, profit booking occurred at higher levels. Currently, the market is witnessing non-directional activity; perhaps traders are waiting for an either-side breakout.
Technically, 24,700/81100 would be the key support zone for traders, while 25,000/82200 would act as a crucial resistance zone for the bulls. As long as the market trades within this range, a range-bound texture is likely to persist. On the higher side, a successful breach of 25,000/8220 could push the market up to 25,100–25,250/82500-83000. On the downside, a fall below 24,700/81100 could retest levels of 24,500–24,450/80600-80500.
Satish Chandra Aluri, Lemonn Markets Desk, adds: "Benchmark equity indices ended lower on Tuesday after two consecutive days of gains, weighed down by weak global cues and the absence of fresh domestic triggers. The broader mid- and small-cap segments outperformed, closing in the green.
Selling pressure in IT, Auto, and Utilities stocks, coupled with mixed global signals, dragged the benchmarks lower. Investors turned cautious and booked profits following recent gains, amid weak global sentiment and declining foreign investor interest. Rising COVID-19 cases and uncertainty around U.S. tariffs also contributed to the cautious mood. Foreign portfolio investors (FPIs) showed limited interest, with net inflows of only Rs135.98 crore on May 26.
With no significant domestic developments, markets now look ahead to key macroeconomic events, including Q4 GDP data on May 30 and the RBI policy meeting on June 6.
On the technical front, the Nifty 50 reversed after testing the 25,000 level, found support near 24,700, and eventually closed above 24,800—maintaining a positive bias. On the upside, 25,000 remains a key resistance zone, while 24,700–24,800 serves as critical support on the downside."
