Nifty 50 Technical Analysis: Key Levels and Trends

Nifty 50 Technical Outlook for Friday- May 16, 2025

The week from May 12, 2025, to May 16, 2025, was a positive one for the Nifty 50 index. The index closed up 4.21% higher. On Friday, the market closed at 25,019 level, which is 0.17% lower than Thursday’s close of 25,062. 

Let us look at the detailed Nifty 50 technical analysis for today. 

Nifty 50 Technical Analysis 

Here is the Nifty 50 price action for Friday, May 16, 2025. 

Source: Tradingview; Nifty 50, 30-minutes chart, with 200-period EMA, and MACD indicator, showing a bearish divergence.  

• On the 30-minute chart, the Nifty 50 index is in an uptrend, creating higher highs and higher lows (as marked by arrows). It is the first bullish sign for the index. 
• The index also trades above its 200-period EMA on the 30-minute chart, indicating further bullishness. 
• But at the same time, the index is forming a bearish divergence with the MACD indicator on the 30-minute chart, which is a slightly bearish sign. 
• This shows that the index might be facing some headwinds at the current levels, but the overall structure is still in a strong uptrend. 

Reasons for the Positive Move. 

On Friday, the markets closed positively for the week for the following reasons: 

• Ceasefire News: The markets gained on the back of a ceasefire that was announced between Indian armed forces and Pakistan after tensions between the two countries led to the start of an armed conflict.  

The ceasefire was the biggest Indian market news for the week and led to cheer among investors as the prospects of a full-blown war diminished. Any escalation could have led to a steep fall in indices. 

• FII/DII Buying: From Monday until Thursday (Friday data not available as of this writing) Foreign Institutional Investors (FII) and Domestic Institutional Investors were net buyers of securities in the cash segment showcasing their increased interest after a stabilising geopolitical situation.

Date	FII (₹ crores)	DII (₹ crores)
May 12	1,246	1,448
May 13	-476	4,273
May 14	931	316
May 15	5,392	-1,668
Total	7,093	4,369

Source: Stockedge

Stocks in Action

Let’s look at some stocks that were top gainers and losers in the Nifty 50 index on Friday, May 16, 2025. 

The top 5 gainers in Nifty 50 for Friday are: 

• Bharat Electronics Limited: 3.82%
• Tata Consumer Limited: 1.99%
• Bajaj Auto Limited: 1.98%
• Adani Enterprises Limited: 1.23%
• Hindustan Unilever Limited: 1.05%

The top 5 losers in the Nifty 50 for Friday are: 

• Bharti Airtel Limited: -2.83%
• HCL Technologies Limited: -2.06%
• Infosys Limited: -1.46%
• JSW Steel Limited: -1.35%
• Sriram Finance Limited: -1.26%

Key Nifty 50 Signals 

Let us look at some key Nifty 50 technical analysis signals that investors should watch out for in the coming week: 

Source: Tradingview; Nifty 50, 30-minutes chart, with 200-period EMA, showing a support zone at 24,500 – 24,600 level. 

• The Nifty 50 index has an upward bias since the market is in a strong short-term uptrend on the 30-minute chart.
• On the downside, the Nifty 50 index can take support at the 24,500 – 24,600 zone (marked by red lines). Any bounce back from this zone can lead to an increased chance of uptrend continuation. 
• A break of the 24,500 -24,600 zone in the index will increase the chances of further selling. Investors should watch out for this key level for the next few trading sessions. 
• Any gap-up move on Monday can lead to even further bullish sentiment in the markets. 

Traders must also keep an eye on any geopolitical developments in the news. Since, at such times, geopolitical news can have a bigger impact on the stock market than financial news. 

Movement of Other Indices 

Here is the price movements of some other key indices for the week gone by: 

Name of the Index	% Gain / Loss
Sensex	+3.62%
Nifty Bank	+3.28%
Nifty Midcap 150	+6.96%
Nifty Smallcap 250	+8.79%

The Sensex movement also shows that the investor sentiment was bullish in the week gone by. If there are no major negative developments over the weekend, then there is a high probability of the bullish sentiment prevailing. 

Midcaps and Smallcap stocks were the clear winners over their large counterparts. 

Conclusion

Given the strong short-term uptrend, positive institutional buying, and easing geopolitical tensions, the Nifty 50 index can present an attractive opportunity for traders. While some caution is warranted due to the bearish MACD divergence, the overall market sentiment remains bullish. For those looking to capitalise on India’s market momentum and diversify their portfolios, this can be a compelling time to invest in the Nifty 50 Index in India today and participate in the country’s long-term economic growth story. You can also seek professional advice.