Indian equity benchmark indices are anticipated to open on a cautious note this Tuesday, May 26, 2026, influenced by mixed global signals. GIFT Nifty Futures, traded on the NSE International Exchange, were observed down 23 points, or 0.10 percent, at 24,040, indicating a subdued start for domestic trading.
Global Cues and Market Sentiment
Globally, the dollar steadied on Tuesday, driven by renewed safe-haven demand, though it remained below its six-week peak from last week. Asian markets presented a mixed picture in early trade; while KOSPI surged by nearly 3 percent, Nikkei and Hang Seng experienced declines of up to half a percent. US stocks remained closed on Monday for Memorial Day, but the Dow Jones Industrial Average recorded an intraday high on Friday, fueled by AI-driven optimism and hopes for a US-Iran peace deal, despite new US strikes in the Middle East.
Market sentiment is primarily shaped by optimism surrounding a potential US-Iran peace agreement, according to Ajit Mishra, SVP of Research at Religare Broking. Investors are closely watching foreign institutional flows and ongoing Middle East negotiations. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, suggests that Nifty's upward momentum could continue if crude oil prices remain soft, the rupee recovers, and geopolitical tensions ease.
Commodities and Currencies
- Dollar: Steady on Tuesday at 99.031 against a basket of currencies.
- Crude Oil: Brent futures rose over 1 percent in early Asian trade to $97.32 a barrel.
- Gold: Spot gold was down 0.5 percent at $4,545.90 an ounce.
FII-DII Investment Flows
Provisional data from NSE indicates that Foreign Portfolio Investors (FPIs) were net sellers of domestic stocks on Monday, offloading shares worth Rs 821.75 crore. Conversely, Domestic Institutional Investors (DIIs) showed strong buying interest, acquiring Indian equities totaling Rs 3,856.88 crore on a net basis.
Technical Outlook for Nifty50 and Sensex
Technically, markets maintained positive momentum, supported by favorable global sentiment. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that Nifty not only surpassed its 20-day Simple Moving Average (SMA) but also closed above it, suggesting further upside. For trend-following traders, the 20-day SMA or 23,875/76,000 serves as a crucial support zone. Above this, the market could move towards 24,200-24,250/77,000-77,200.
Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, highlighted that Sensex reclaimed the 76,000 mark, closing near its day's high, indicating improving short-term momentum. Immediate support for Sensex is between 75,700–75,900, with resistance near 77,100–77,200. Rupak De, Senior Technical Analyst at LKP Securities, added that the bullish crossover in the RSI further supports positive momentum, with Nifty potentially moving towards 24,200 and higher, while 23,800 acts as support.
Nifty Bank Outlook
Nifty Bank is outperforming frontline indices, forming a strong bullish candle on the daily chart and closing above its 50-day Exponential Moving Average (EMA). Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, expects a positive bias, potentially advancing towards 55,800, followed by 56,300. The 54,900–54,800 zone is identified as a key support level.
Bajaj Broking noted that Nifty Bank generated a breakout above its falling supply line, signaling strength. Sustaining above Monday’s gap area (54055-54590) will maintain a positive bias, opening further upside towards 56,000 and 56,600. Immediate support is at 54,000, with major support at 53,000-52,500.