Indian stock market rallied on Monday, May 26th, tracking positive global cues after US President Donald Trump extended the deadline to impose 50% tariff on the European Union to July 9th. US stocks futures and Asian shares traded positive in the early trade of Monday. Sensex and Nifty climbed by nearly a percent.
Sensex, Nifty 50:
At the time of writing, Nifty 50 surged by 124.40 points or 0.49% to trade at 24,976.50. In the opening bell, Nifty zoomed up by at least 226.05 points to hit an intraday high of 25,079.20. Except for the media index, all other indices were trading higher. Nifty Auto, Nifty IT and Nifty Oil & Gas are top performers with gains of around 1% each.
Meantime, Sensex performed at 82,186.37, higher by 465.29 points or 0.6%. The benchmark zoomed by at least 771.16 points to hit an intraday high of 82,492.24. Stocks like M&M, Tata Motors, Nestle, Power Grid and HUL are top gainers with the upside of 1.2% to 2%. However, Eternal stock, which was earlier called Zomato, is the top bear with a 3.5% downside.
"Nifty ended Friday with strong gains, driven by an above-normal monsoon forecast for 2025 and the RBI's record Rs 2.7 lakh crore dividend for FY25, boosting fiscal strength and sentiment. As we start the week, Wall Street remains shut today for Memorial Day. US stock futures are up after President Trump delayed 50% EU tariffs to July 9. Key earnings to watch: AUROBINDO PHARMA and KEC today; BOSCH, NAUKRI, NMDC, and others tomorrow," said Prashanth Tapse, Senior VP (Research), Mehta Equities in a note.
Two major IPOs are going to open on Monday for subscription on BSE and NSE. These are Schloss Bangalore and Aegis Vopak Terminals.
On BSE, a total of 3,968 stocks were traded, of which 2,259 stocks advanced and 1,469 stocks declined. A total of 240 stocks traded flat. Also, 87 stocks touched a new 52-week high, while 26 stocks hit their 52-week lows. Additionally, 240 stocks touched upper circuits and 195 stocks hit lower circuits on Monday.
On NSE, about 104 stocks touched upper circuits and 48 stocks hit lower circuits, while there were 6 stocks that touched both circuits.
At the current trading price of Sensex, BSE-listed companies' market cap stood at Rs 4,44,79,983.80 crore. This is higher by Rs 2,83,618.43 crore from the BSE-listed market cap of Rs 4,41,96,365.37 crore.
Also, Dr. VK Vijayakumar, Chief Investment Strategist, at Geojit Investments Limited said, "News of India becoming the fourth largest economy in the world would be a near-term morale boost for the market. RBI's bumper dividend payment to the government exceeding the budget estimates will help contain the fiscal deficit target for FY26 at 4.4%. This, in turn, can sustain the low inflation and declining interest rate trend which will continue to support the equity market. FII inflows which have been strong in early May have turned erratic recently indicating potential selling at higher levels."
Global Markets:
Both US and European stock futures jumped after Trump extended deadline for EU tariffs. The Dow Jones futures are up by 364 points to 42,038, while S&P 500, Nasdaq 100 and Euro Stoxx 50 futures climbed about 1% each.
Also, the Japanese shares traded higher with Nikkei 225 and Topex index up 0.9% and 0.5% respectively. South Korea's KOSPI index jumped nearly 1.2%, while Indian shares joined the rally. However, the Chinese market witnessed a bearish trend with CSI 300 and Hang Seng index down by nearly 1% each. Australian index S&P/ASX 200 traded in a narrow range.
Asian stocks advanced on Monday, accompanied by gains in US and European equity-index futures, after President Donald Trump postponed the imposition of stringent tariffs on Europe, easing trade tensions that had been unsettling global markets, said Anand James, Chief Market Strategist, Geojit Investments.
Sensex, Nifty Target:
A morning star pattern in daily charts, that has now followed a parallel consolidation in hourly charts backed by repeated support offered by the 24500 region, is suggestive of more gains to follow. This would mean that the nearest peak of 25235 may be overcome, projecting 25460 as the nearest objective and 26250 as an optimistic objective. That said, inability to push beyond 24950 would prompt us to revert to risk off mode, with downside marker placed at 24755. A collapse is not expected, but 24500 will stand in the way of activating a 24060 move, as per James.
Additionally, Akshay Chinchalkar, Head of Research, Axis Securities said, the Nifty rallied a percent on Friday, putting some short-term nervousness to rest. Technically speaking, an important swing low seems to have been formed at 24462 in a classic retest of a resistance-turned-support area, but bulls need to break through the 24946 - 24974 area to get an all-clear. Should this happen, the next hurdle zone lies between 25000 and 25436.
Meanwhile, Vaishali Parekh, Vice President - Technical Research, at PL Capital Group said, Sensex, has respected the important 20DMA zone of 80980 level where it has taken support during the intraday session and witnessed a decent pullback to improve the bias expecting to maintain the trend intact in the coming sessions. As mentioned earlier, the index would have psychological base near 80000 zone while the crucial support would be positioned near the 80500 level which needs to be sustained.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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