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Informist, Tuesday, May 27, 2025

By Akash Mandal

MUMBAI – The benchmark indices are likely to consolidate Wednesday after the volatile movement seen in recent sessions, analysts said. While analysts are unsure when the Nifty 50 will reclaim the psychologically important level of 25000 points, they maintain their positive view for the near term. Some said the Nifty 50 is expected to test the 25300-25350 levels by the end of the week. For Wednesday, analysts expect the Nifty 50 to move between 24700 and 25000 points.

"Looking ahead, the relative strength index is trending lower, accompanied by increasing selling volumes, which suggests a demand zone near the 24500 mark (for the Nifty 50)," Kshitija Salvi, technical analyst at IDBI Capital Markets & Securities, said. "The overall market bias remains sideways, and any declines approaching the demand zone should be viewed as opportunities to establish long positions."

A few other participants have similar views on the market's direction. "We believe (Nifty 50) index will extend the consolidation, hence dips should be used as buying opportunity," Bajaj Broking Research said in a post-market note. Nandish Shah, technical and derivatives analyst at HDFC Securities, believes the bullish momentum will resume once the Nifty 50 decisively crosses 25116 points.

Tuesday, the Nifty 50 ended at 24826.20 points, down 174.95 points or 0.7%. With this, the index gave up nearly half the gain of nearly 400 points it had made in the previous two sessions. The BSE Sensex closed at 81551.63 points, down 624.82 points or 0.8%.

The March quarter earnings season has not brought any negative or positive surprises for equity investors so far, though a few analysts said the growth figures were slightly higher than expected. However, this does not give any clear hint that the slowdown in India's corporate earnings growth has bottomed out, some research analysts said.

No company in the Nifty 50 index is scheduled to report its March quarter earnings Wednesday. Only one company in the Nifty 100 will report its quarterly results on the day--Indian Railway Catering and Tourism Corp. Prabhudas Lilladher expects the railway services company's bottom line to grow 19% on year, while IDBI Capital expects it to rise 15%. Both brokerages see robust on-year growth in the revenue for the reporting quarter. Cummins India and Steel Authority of India will also detail their earnings Wednesday.

Investors will look forward to the minutes of the US Federal Reserve's latest policy meeting, scheduled for release late Wednesday. The minutes will give insights into the views of the Fed's 12-member monetary policy panel on the health of the US economy, inflation, and the interest rate trajectory.

Investors will also look for hints to the outcome of the Fed's next policy meeting, to be held Jun. 17-18. The comments of Fed Chair Jerome Powell and a few other officials about the increasing risks to the economy from US President Donald Trump's tariffs have dented sentiment in recent times. There are also worries that the apex bank's rate-cut cycle will slow down this year because of Trump's policies.  End

Edited by Rajeev Pai

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