Stock Market: Bulls Charge Nifty for Potential Breakout
Greater Chennai Corporation listed Municipal Bonds on NSE.(Image NSE India)
Defence and Auto Stocks Fuel Stock Market Rally Amid Broad-based Equity Gains
By S JHA
MUMBAI, May 26, 2025 – The Indian equity markets opened the week on a buoyant note, with the Nifty 50 index surging past the 25,000 mark in early trade and touching a high of 25,116, before encountering resistance and slipping into a phase of consolidation.
Despite the intraday volatility, the index ended the day at 25,001.15, up 148 points or 0.60%, reclaiming the psychological 25K level for the first time in five sessions and nearing a seven-month high.
The session saw broad-based buying across sectors, with Auto and IT leading the gains, each adding over 1%. The Nifty Auto index, in particular, broke out of recent sluggishness, hinting at a revival in investor interest in the sector. Nifty India Defence emerged as the top-performing thematic index of the day, gaining 1.2%.
Among frontline stocks, Bajaj Auto Ltd. was the top gainer in the Nifty 50 pack, rising 2.5%, while Eternal Ltd. fell 4.5%, making it the top loser of the session.
Bank Nifty, PSU Banks Show Signs of Fatigue
The Bank Nifty mirrored the Nifty’s early enthusiasm but gave up gains as the session progressed, ending flat with a Doji-like candle formation on the daily chart—an indication of market indecisiveness. PSU Banks, Healthcare, and Oil & Gas sectors mildly underperformed but still managed to close in the green.
Strong Market Breadth Signals Underlying Strength
- 76% of Nifty 50 stocks and 64% of Nifty 500 stocks ended higher
- Over 84% of stocks in both indices are now trading above their 50-day EMA, and 78% above the 20-day EMA
- All sectoral indices closed in the green
Global Cues Mixed; India Stays Resilient
Global sentiment remained shaky following a weak close on Wall Street last week due to concerns over economic data and policy direction. While Asian markets mirrored the decline, European indices traded with gains, displaying regional resilience. India, however, outperformed its Asian peers, with renewed domestic momentum lifting investor confidence.
Technical Outlook: Key Resistance Eyed at 25,116
Both Angel Broking and StockEdge analysts noted that Nifty faces a key resistance at 25,116, a swing high that capped today’s rally. A sustained breakout above this level could trigger further upside towards 25,250–25,400 in the coming sessions. On the downside, immediate support is seen at 24,900–24,850, with broader support at 24,816.
Stock Buzz: Corporate Updates
- Gillette India Ltd. reported a 12.8% YoY rise in Q4 FY25 revenue, with EBITDA margins improving by 600 basis points
- Nibe Ltd. secured a significant export order worth ₹150.6 crore from Israel for rocket launcher supplies
- Havells India Ltd. announced a ₹340 crore investment to expand cable production capacity at its Alwar facility by 0.2 lakh kilometers
- Anupam Rasayan India Ltd. hit a new 52-week high, ending over 5% higher, backed by strong technical breakouts
- Divi’s Laboratories Ltd. attracted buying interest after technical indicators pointed to renewed strength
Outlook Ahead
With broad market breadth, sector-wide gains, and robust technical indicators, the Nifty appears poised for a potential breakout, should it sustain above the 25,116 resistance zone. The market’s resilience in the face of global headwinds indicates continued investor faith, although caution is advised near resistance levels.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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