The Indian stock market is set for a pivotal trading session on Monday, May 19, 2025, with the Nifty 50 index maintaining its position above the crucial 25,000 mark. Despite a minor setback on Friday, when the index slipped by 42.30 points to close at 25,019.80, market sentiment remains broadly optimistic.
The slight dip was largely attributed to profit booking in sectors such as information technology and select blue-chip stocks, but analysts believe this correction is healthy and not indicative of a trend reversal.
From a technical standpoint, the Nifty chart shows a small red candle, signaling some selling pressure; however, the overall bullish momentum remains intact. Key support is identified at 24,800, a level that traders are watching closely as a potential buying zone should the index dip further.
On the resistance front, 25,150 is the immediate hurdle, and a decisive break above this level could trigger a fresh rally. The index continues to trade above its 10-day Exponential Moving Average (DEMA), which supports the positive outlook. Additionally, the Relative Strength Index (RSI) remains above 60, indicating sustained market strength and the likelihood of further upward movement.
Market experts emphasize that as long as the Nifty holds above 25,000, bulls remain in control. The recent profit booking is viewed as a natural pause after a strong rally rather than a sign of weakening momentum.
Traders and investors are advised to monitor the 24,800 support level carefully, as a breach below this could open the door to additional downside pressure. Conversely, a successful push past 25,150 could lead to new highs, encouraging further buying interest.
Looking ahead to Monday’s trading session, the outlook is cautiously bullish. The market is expected to defend the 25,000 support level, with key levels to watch being 24,800 on the downside and 25,150 on the upside.
Traders may consider buying on dips near the support zone with appropriate stop-loss orders to manage risk. Overall, the market is poised for another week of potential gains, provided it can sustain momentum and overcome immediate resistance levels, keeping the bulls firmly in control.
