Trade Setup For May 27: Nifty May Rise To 25,200–25,300 Levels

The NSE Nifty 50, which reclaimed the psychological 25,000 mark on Monday, may rise to 25,200-25,300 levels in case of a further uptick, according to analysts.

The frontline index has formed a bullish candle on daily charts, said Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd. "A sustainable move above 25,000 could drive the Nifty towards 25,200–25,250 levels in the short term."

On the downside, the 21-Day Exponential Moving Average support is near 24,530, as per Yedve. The analyst recommended a 'buy on dips' strategy as long as the index stays above the aforementioned level.

A move above Monday's high of 25,079 would be viewed favourably, potentially paving the way for upward movement towards the 25,200 to 25,300 zone, according to Bajaj Broking Research.

On the downside, the 24,800 level is anticipated to act as the first line of support. More significant short-term support appears in the 24,400-24,500 region, which coincides with the 20-DEMA, a prior breakout level, and the lows observed over the last two weeks, the brokerage added.

The Bank Nifty, another keenly tracked index, sees resistance near 56,000–56,100 levels, Yedve said. On the downside, the immediate support level is placed at 54,800, as per Bajaj Broking Research.

The benchmark equity indices closed higher on Monday as it continued to rise for a second session in row.

The NSE Nifty 50 closed 148 points, or 0.60% higher at 25,001 and the BSE Sensex ended 455.37 points, or 0.56% up at 82,176. During the day, the Nifty 50 gained 0.91% to 25,079.20, while the Sensex gained 0.94% to 82,492.24.

Foreign portfolio investors mopped up stocks worth Rs 136 crore, according to the provisional data from the National Stock Exchange.

Domestic institutional investors stayed net buyers for the fifth straight day as they bought equities worth Rs 1,746 crore, the data showed.

The FPIs had bought shares worth Rs 1,794.59 crore on Friday.

• Nifty May Futures up by 0.62% to 25,035 at a premium of 34 points.

• Nifty May futures open interest down by 9.42%.

• Nifty Options May 29 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 24,000.

• Securities in ban period: Chambal Fertilizer, Hindustan Copper, Manappuram, RBL Bank and Titagarh.

• Garden Reach Shipbuilders & Engineers: The order, worth $21 million (nearly Rs 180 crore), from the Directorate General Defence Purchase, Ministry of Defence, Bangladesh has been cancelled.

• Interglobe Aviation: Co-founder Rakesh Gangwal and a promoter entity are planning to offload up to a 3.4% stake in the company for nearly Rs 6,833 crore via open market transactions. Gangwal and the Chinkerpoo Family Trust are offering as many as 1.3 crore shares in the company in a block sale. The floor price for the block deal is set at Rs 5,175 per share, a 4.5% discount to the last closing.

• Dabur India: The board approved the Scheme of Amalgamation of Sesa care with the company.

The Indian rupee fell by 37 paise to close at 86.01 against the US dollar on Thursday, marking its lowest level since April 11. The rupee had closed at 85.64 per dollar on Wednesday.