Stock Market Outlook Today, 26 May 2026: Sensex, Nifty Likely To Extend Rally Amid Soft Crude Prices

Indian equity markets are expected to open on a positive note on Tuesday, 26 May 2026, as strong bullish momentum, supportive global cues, and easing crude oil prices continue to drive investor sentiment. The previous session's sharp rally, led by gains in banking, auto, and realty stocks, has strengthened the underlying trend, with Nifty reclaiming and sustaining above the crucial 24,000 mark.

Stock Market Outlook Today, 26 May 2026; Sensex, Nifty Prediction For Tuesday

Benchmark indices opened with a strong gap-up on 25 May and maintained their positive momentum throughout the session, as optimism over progress in U.S.-Iran peace talks triggered a sharp correction in crude oil prices below $96 per barrel and supported a marginal recovery in the Indian Rupee. The positive global cues helped the Nifty close above the crucial 24,000 mark.

At close, the Sensex was up 1073.61 points or 1.42 percent at 76,488.96, and the Nifty was up 312.40 points or 1.32 percent at 24,031.70. On the sectoral front most of the sector traded in positive and contributed with major gain noted from Nifty PSU and PVT banks, Auto, Realty major sector closed positive while the only laggard is noted in Nifty FMCG sector. Broader markets also participated in the rally, with the Midcap index gaining 0.94% and Smallcap index advancing 1.37%, indicating broad-based buying interest.

Market experts believe the momentum could extend further, provided macro conditions remain supportive.

"Nifty is expected to continue its gradual upmove provided crude oil prices remain soft, the rupee sustains its recovery from record lows and geopolitical tensions continue to ease. Indian benchmark indices opened sharply higher and held gains through the session, with the Nifty 50 ending up 1.3%, while Midcap and Smallcap indices gained 0.9% and 1.4%, respectively," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Nifty Prediction Today, 26 May 2026; Check Technical Outlook By Expert

According to Bajaj Broking Research, the index has confirmed a bullish breakout after forming a strong candlestick structure with higher highs and higher lows. The index also sustained above key short-term exponential moving averages, reinforcing positive bias in the near term.

It stated, "Index in the daily chart formed a strong bullish candlestick pattern with a higher high and higher low and a bullish gap below its base (23,835-23,922). The index in the process closed above the 20 & 50 days EMA highlighting positive bias. The index has generated a breakout above the last 9 sessions broad trading range of 23,200-23,900 signaling strength.

"Index sustaining above the Monday's gap area will keep the bias positive and will open further upside towards 24,200 and 24,600 in the coming sessions."

On the downside, immediate support is placed near 23,600, while stronger support exists in the 23,200-23,000 zone, which aligns with key retracement levels and previous bullish gaps.

Bank Nifty Outlook for Tuesday

Banking stocks continued to outperform, with Bank Nifty breaking out of a falling supply trendline and maintaining strong bullish structure on the charts. The index closed above important moving averages, signaling sustained strength in the banking space.

Bajaj Broking Research observed that the index in the daily chart formed a strong bullish candlestick pattern with a higher high and a higher low and a bullish gap below its base 54055-54590. The index in the process closed above the 20 & 50 days EMA highlighting positive bias.

The index has generated a breakout above the falling supply line joining the recent highs signaling strength. Index sustaining above the Monday's gap area will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions.

"Index has immediate support at 54,000 levels 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 (22,182-24,601). The daily stochastic is in uptrend thus supports the positive bias in the index," stated Bajaj Broking Research.

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