Nifty 50, Sensex, Nifty Bank Index, Keep The Bullish View Intact. Dow Jones, Nasdaq Composite, S&P 500 Can Rise More

Nifty 50, Sensex and the Nifty Bank indices opened the week with a wide gap-up on Monday. The ceasefire announcement between India and Pakistan triggered a strong surge in the Indian benchmark indices on Monday. Thereafter the indices managed to sustain higher and hold on to their gains. Broadly, the picture continues to remain positive. We continue to retain our overall bullish view in the Sensex, Nifty and the Nifty Bank index.

Among the sectors, the BSE Realty index surged over 10 per cent. The BSE Capital Goods and BSE Metals index were up over 9 and 8 per cent respectively

More buying

Foreign Portfolio Investors (FPIs) were net buyers of Indian equities for the fifth consecutive week. They bought about $521 million in the equity segment. For the month of May, the net inflow into the equity segment stands at $2.2 billion. The continuous buying from the FPIs can help the Indian benchmark indices to scale new highs going forward.

Nifty (25,019.80)

Nifty opened the week with a wide gap-up above 24,000. It touched a high of 25,116.25 on Thursday and closed the week at 25,019.80, up 4.21 per cent.

Short-term view: The outlook is bullish. But there is a chance for an intermediate dip. Immediate resistance is at 25,200. If that holds, Nifty can fall to 24,500-24,400 or 24,200. Thereafter a fresh leg of rise can take the Nifty up to 25,300-25,400 initially. An eventual break above 25,400 can then clear the way for the next target of 26,000.

If Nifty manages to breach 25,200 immediately, then the rise to 26,000 can happen straightaway.

Chart Source: TradingView

Medium-term view: The broader outlook continues to remain bullish. Nifty has potential to target 28,000-28,500 in the coming months.  Intermediate resistance can be in the 26,000-26,500 region. A corrective dip to 25,000-24,500 is a possibility before the rally to 28,000-28,500 happens.

From a long-term perspective, the current leg of rally may have the potential to take the Nifty up to 31,000 in the first half next year.

Nifty Bank (55,354.90)

The Nifty Bank index surged above 54,000 initially and then remained broadly in a range for the rest of the week. The index has closed the week at 55,354.90, up 3.28 per cent.

Short-term view: The outlook is bullish. Immediate resistance is at 56,100. A strong break above it can take the Nifty Bank index up to 57,500-58,000 or 58,500 in the short term.

In case, the index fails to breach 56,100, it can fall back to 53,500. In that case, 53,500-56,100 can be a possible trading range for some time.

Lower support is at 52,500. Nifty Bank index has to decline below this support to turn the short-term outlook negative.

Chart Source: TradingView

Medium-term view: The big picture remains positive. We retain our bullish view of the Nifty Bank index targeting 61,000 on the upside in the coming months.

Intermediate resistance is in the 58,000-58,500 region., A corrective fall to 56,000 from here is a possibility before the index targets 61,000.

As aforementioned, 52,500 is a strong support which has to be broken to negate this bullish view.

Sensex (82,330.59)

After struggling to breach 81,000 decisively for two weeks, Sensex broke this hurdle and surged last week. It made a high of 82,718.14 and closed at 82,330.59, up 3.62 per cent.

Short-term view: Immediate resistance is in the 82,750-82,950 region. A break above 82,950 can take the Sensex up to 84,500-85,000 in the coming weeks. In case 82,950 caps the upside for now, then a corrective dip to 80,500 or 80,300 can be seen first. Thereafter the rise to 85,000 can happen.

Chart Source: TradingView

Medium-term view: The broader view remains bullish. Sensex can target 85,000-86,000 initially. From a long-term picture, Sensex has potential to target 90,000-92,000 eventually next year.

Supports are at 78,000 and then 76,000-76,500. A fall below 78,000 will give us the initial sign that the bullish view is going wrong. But that looks unlikely.

US Market outlook

In the US as well, the benchmark indices opened the week with wide gap-up last week. The NASDAQ Composite Index surged over 7 per cent and outperformed last week. The Dow Jones Industrial Average and the S&P 500 index were up 3.4 per cent and 5.3 per cent respectively. On the charts, the Dow Jones, NASDAQ Composite and the S&P 500 index are all looking bullish. They can rise further in the coming weeks.

Dow Jones (42,654.74)

The Dow Jones Industrial Average has risen well beyond our expected level of 42,300 last week. The outlook is bullish. Support is in the 42,000-41,700 region. Below that, 41,000 is the next strong and lower support.

Chart Source: TradingView

The Dow Jones can rise to 43,300-43,500 initially in a week or two. From a big picture, the Dow has potential to revisit 45,000 levels in the coming weeks.

This bullish view will go wrong only if it declines below 41,000. If that happens, it can fall back to 39,000-38,800.

S&P 500 (5,959.38)

The S&P 500 opened with a wide gap-up above the key resistance level of 5,770 last week. The outlook is bullish. Supports are at 5,770 and 5,660. The S&P 500 index can rise to 6,050-6,100 in the short term.

Chart Source: TradingView

From a medium-term perspective, the S&P 500 index has potential to target 6,250-6,330 on the upside in the coming months.

The bullish outlook will go wrong only if the S&P 500 index declines below 5,660. In that case, the index will come under pressure for a fall to 5,250-5,200. But such a fall looks less likely.

NASDAQ Composite (19,211.10)

The NASDAQ Composite index has surged above the psychological 18,000 mark last week. The outlook is bullish. Supports are at 18,650 and 18,500. The NASDAQ Composite index can rise to 20,000-20,100 in the coming weeks.

Chart Source: TradingView

The level of 18,000 is a crucial support. The outlook will turn negative only if the NASDAQ Composite index declines below this support. If that happens, the index can fall to 17,600 and lower.

Published on May 17, 2025