Indian equity markets are set for a cautious start on Thursday, May 22, as weak global cues and a sell-off in global bonds weigh on investor sentiment. The GIFT Nifty index was quoting around 24,789 in early trade, down 50 points or 0.14 percent, signaling a likely soft opening for both the Nifty 50 and Sensex.
Overnight, Wall Street suffered its steepest losses in a month. The Dow Jones Industrial Average dropped 1.91 percent, the S&P 500 slid 1.61 percent, and the Nasdaq Composite declined 1.41 percent, as investors reacted to concerns over a major US tax and spending bill that could widen the federal deficit. This negative sentiment spilled over into Asian markets, with Japan’s Nikkei 225, South Korea’s Kospi and Kosdaq, and Hong Kong’s Hang Seng all tumbling more than one percent in early trade.
On the domestic front, Indian benchmarks had rebounded in the previous session after a volatile day, with the Nifty 50 closing 130 points higher at 24,813 and the Sensex up by 410 points at 81,596. Gains were broad-based, with the defence sector leading the rally, surging over 3.5 percent.
Technically, analysts note that the Nifty faced resistance near 24,950 and corrected sharply, but managed to close above 24,650, which is seen as a positive sign. The index is expected to remain range-bound between 24,650 and 25,000, with a breakout above 25,000 potentially pushing it higher toward 25,100–25,150. However, a fall below 24,700 could trigger a broader market correction.
The market participants are bracing for a choppy session amid global volatility and weekly expiry pressures, with key support and resistance levels likely to determine the day’s direction.
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