The Nifty 50 index closed 0.67% lower at 24,853 in the previous week (May 19 – May 23, 2025). This slightly negative move came after the market rallied almost 4% in the week before as a result of ceasefire news.
Let us look at some weekly Nifty 50 technical analysis signals that traders can look at for the current week (May 26 – May 30, 2025).
Market Recap: May 19 – May 23, 2025
The Nifty 50 index opened the week on Monday at 25,005 and made a low on Thursday at 24,462 level. On Friday, the index recovered and closed the week at 24,853. Here is the Nifty 50 OHLC (open high low close) data for the previous week.
| Open | 25,005 |
| High | 25,062 |
| Low | 24,462 |
| Close | 24,853 |
Here is the movement of other indices for the last week:
| Index | % Gain/ Lost (May 19 – May 23, 2025) |
| Nifty Midcap 150 | -0.41% |
| Nifty Smallcap 250 | +0.78% |
| Nifty Next 50 | +0.03% |
| Nifty 500 | -0.39% |
| Sensex | -0.74% |
All Indian market indices showed sideways moves in line with the performance of the Nifty 50 index.
Reasons for the Performance
The slightly negative performance of the Nifty 50 index last week can be attributed to the following reasons:
- FII/DII Activity: In the week gone by, foreign institutional investors were net sellers of equities to the tune of ₹9,491 crores and domestic institutional investors purchased equities worth ₹11,198 crores.
The selloff was balanced by a strong buying, which led to a negligible move in the index.
| Date | FII (₹ crores) | DII (₹ crores) |
| May 19 | -525 | -237 |
| May 20 | -10,016 | +6,738 |
| May 21 | +2,201 | +683 |
| May 22 | -5,045 | +3,715 |
| May 23 | +1,794 | +299 |
| Total | -9,491 | 11,198 |
Source: Stockedge
- Economic News: Over the weekend, there was no major economic news that impacted the stock market, except the fact that India overtook Japan to become the world’s fourth-largest GDP.
Despite this, President Trump announced 50% tariffs on the European Union (EU) countries from June 1, 2025, but this was again postponed until July 9, 2025.
If these tariffs were not delayed, they might have negatively affected the stock markets.
Weekly Nifty 50 Technical Analysis
Let us look at the Nifty 50 price action:
Source: Tradingview; Nifty 50, Weekly chart
- On the weekly chart, after a long time, the MACD indicator has crossed the zero line. This shows positive momentum is returning to the Nifty 50 index on a broader timeframe.
Source: Tradingview; Nifty 50, 30-minutes chart
- On a smaller time frame (30 minutes), the Nifty 50 index last week took support and bounced back from its support zone of 24,500 – 24,600.
- On Monday, May 26, 2025, the index opened positively and traded at 24,997 level (as of this writing), near the resistance zone of 25,000 – 25,100.
- The index is in a sideways zone on the 30-minute chart, with the 25,000 – 25,100 zone as a resistance and the 24,500 – 24,600 zone as a support.
There are no major Nifty 50 chart patterns forming on any timeframe.
Nifty 50 Trading Strategies
Key Nifty 50 support and resistance levels for the current week that traders can watch are provided below.
Negative Signal
Source: Tradingview; Nifty 50, 30-minutes chart, with 200-EMA and MACD indicator
- A negative signal for the Nifty 50 index would be if it slips below the 24,500 – 24,600 zone. This will also mean a breach of 200-EMA on the 30-minute chart.
- This negative move, if any, can be confirmed by MACD (30-minute chart) falling below the zero line.
- In case of a breach of the support level, the next support zone is at the 24,000 – 24,100 level.
Positive Signal
Source: Tradingview; Nifty 50, 30-minutes chart
- A positive signal for the index will be if it breaks above the resistance level of 25,000 – 25,100.
- A move above the 25,000 level can be a bullish sign because it is level with the highest call open interest, meaning the presence of the highest number of call writers, which makes 25,000 a strong resistance.
Source: Sensibull
Key Factors for the Current Week
The main factors that can influence the Indian stock market trends are:
- Indian Economic Data: India’s industrial production data and manufacturing production data will be out on Wednesday, and GDP growth rate data on Friday.
- US Economic Data: Federal Open Market Committee (FOMC) minutes will be presented on Wednesday, which will give insights into further interest rate trajectory from the Federal Reserve.
- Tariff Tantrum: With the US president imposing and then removing tariffs on the EU, it seems there is a chance that a tariff tantrum might affect the markets once again, so investors must keep an eye on this front.
Performance of Other Assets and Markets
Let us take a look at the performance of other asset classes and various global market indices in the week gone by:
| Asset | % Gain/Loss (May 19 – May 23, 2025) |
| Gold Futures (MCX) | +4.31% |
| Crude Oil Futures (MCX) | -1.72% |
| Dollar Index | -1.87% |
| S&P 500 Index (USA) | -2.61% |
| FTSE 100 (UK) | +0.38% |
| Nikkei 225 (Japan) | -2.99% |
Last week, the Indian markets were slightly negative, but the US and Japanese markets fell. This was the result of the tariff imposition on the EU.
As a result of this, Gold also spiked, and the value of the dollar, as represented by the dollar index, fell.
Crude Oil futures closed 1.72% lower, and last week, Bitcoin touched an all-time high of $112,000 (or ₹95.29 lakhs).
Conclusion
The markets last week were slightly negative. The Nifty 50 index is in a sideways zone, and the directional bias will become more clear once the index breaks out of the zone on either side. There are no major economic events lined up that hold the potential to shake up the markets. Despite this, investors should remain attentive to any major news developments. Remember that short-term traders must prioritize proper risk management. Traders can visit numerous online platforms to access charting and market tracking tools.
- Nifty 50 Trading Strategies and Technical Analysis - May 26, 2025
- Weekly Nifty 50 Technical Analysis: Key Trading Strategies - April 30, 2025
- Weekly Nifty 50 Technical Analysis: Market Sentiment Decoded - April 21, 2025
