Indian stock market: Both Indian indices, the Sensex and Nifty 50, ended sharply lower on Friday, May 29, following a steep sell-off in the final hour of trading. MSCI rebalancing, effective at the close of trading on May 29, also added to market volatility. Experts noted that the impact of these adjustments was likely reflected in the final 30 minutes of trading on Friday.
Throughout most of the session, both indices traded in a narrow range as investors stayed on the sidelines amid uncertainty surrounding a potential US-Iran agreement. However, market sentiment deteriorated toward the close, leading to heavy selling pressure and a sharp decline. The Sensex plunged nearly 1,300 points, while the Nifty 50 slipped to an intraday low of 23,485.
By the end of the session, the 30-share Sensex had fallen 1,092 points, or 1.44%, to close at 74,775.74. The Nifty 50 also finished in the red, shedding 359 points, or 1.50%, to settle at 23,547.75.
According to Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, the Indian markets are likely to enter the upcoming week with heightened volatility and a strong dependence on global developments, as investors balance improving risk sentiment against persistent concerns surrounding crude oil prices, geopolitical tensions, and foreign fund flows.
Hariprasad further noted that following last week’s sharp correction and breakdown below key resistance levels, market participants are expected to remain selective and cautious while closely monitoring developments in West Asia and global commodity markets.
“For now, macroeconomic and geopolitical developments continue to exert a greater influence on market sentiment than company-specific fundamentals. As a result, disciplined risk management, selective stock picking and close monitoring of global developments are likely to remain critical for navigating the near-term market environment. While robust domestic liquidity continues to provide an important cushion for the market, the broader technical structure remains vulnerable, with benchmark indices still struggling to establish sustained momentum above key resistance levels,” he said.
Ajit Mishra – SVP, Research, Religare Broking, said that given the prevailing backdrop of geopolitical uncertainty, elevated volatility, currency fluctuations, and mixed global macro signals, participants should maintain a cautious yet selective approach.
Mishra explained that sectorally, energy, commodities, and selective domestic-facing themes continue to display resilience. At the same time, caution is warranted in sectors vulnerable to global growth moderation, currency volatility, and rising input costs.
“Traders should avoid excessive leverage and maintain disciplined risk management practices amid heightened event-driven volatility. A hedged and stock-specific approach remains preferable until clearer directional signals emerge from global developments and upcoming policy events,” Mishra added.
On the Sensex outlook, Ponmudi R, CEO – Enrich Money, said that Sensex continues to trade with a negative undertone, reflecting persistent weakness amid cautious investor sentiment and the absence of strong buying interest at higher levels.
“Technically, immediate resistance is placed near the 75,800–76,000 zone, while the broader 76,500–76,700 range remains a major resistance and supply area. A sustained breakout above these levels will be required to improve sentiment and revive bullish momentum.
On the downside, immediate support is seen in the 74,500–74,200 region. Holding above this zone will be crucial to prevent further weakness, while a decisive break below it could accelerate downside pressure and expose the index to lower support levels. The near-term structure remains negative to cautious, with the index likely to remain under pressure unless it decisively reclaims key resistance levels,” Ponmudi added.
On the Nifty 50 outlook, Hitesh Tailor, Research Analyst at Choice Broking, Nifty continues to trade below its 20-week and 50-week EMAs, highlighting the absence of strong bullish momentum, while support from the broader long-term trendline remains intact.
“On the upside, immediate resistance levels are placed at 23,900 and 24,100. On the downside, support is seen at 23,400 and 23,200. A decisive breakdown below the 23,200 zone could invite fresh selling pressure, whereas sustained trade above 24,100 may improve sentiment and support a recovery move. Considering the current technical structure, traders are advised to remain cautious and follow strict stop-loss strategies amid ongoing market volatility,” Tailor said.
Meanwhile, on the Bank Nifty outlook, Tailor added that despite the weakness, Bank Nifty managed to close above the previous week’s settlement and ended the week at 54,239.20, registering a gain of 183.85 points or 0.34%. The price action indicates indecisiveness among market participants, with buyers and sellers struggling for control near key technical levels.
“Technically, Bank Nifty continues to trade below its 20-week and 50-week EMA levels, indicating that the broader trend remains under pressure. The index is currently consolidating near important support zones while facing resistance around the short-term moving averages. Weekly RSI stands at 43.24, reflecting subdued momentum and a cautious undertone in the market. Immediate support is placed in the 53,900–53,555 zone, while resistance is seen at 55,000 and 55,300. A sustained move beyond these levels could determine the next directional trend,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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