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Macro tailwinds to support constructive bias!

ICICIdirect Research 29 May 2026 DISCLAIMER

Equity benchmark concluded monthly expiry week on a subdued note. Nifty lost 0.8% to settle the week at 23600. Midcap index endured its northbound journey by clocking fresh All Time high. Midcap and small cap indices gained 0.5% and 1%, respectively. Sectorally, PSU Bank, Auto, Metal did well while defensive sectors like FMCG, pharma remained laggard

What we expect:

We believe, Nifty has been forming a higher base by consolidating in 23800-23200 zone that has set the stage to gradually head toward the 24,500 level in the coming weeks. In the process, strong support is placed at 23400. Our constrictive bias is based on following observations:

a)      Key index heavy weight sectors like Banking, Auto, Capital goods have formed a higher base while, beaten down IT index found supportive efforts from decade long rising trend line, highlighting revival in key index heavy weights

b)     Going ahead, any positive trigger either on domestic or global front would reignite catch up activity in the domestic markets as global peers like the S&P 500, Nikkei, and Kospi are already trading at record highs

c)      Brent crude oil has broken below its one-month rising trendline support. This accelerating decline in global crude prices is highly beneficial for a major importing nation like India

d)     Better-than-expected corporate earnings season has provided a cushion for the broader market, driving improvements in market breadth over the last five weeks

Key Monitorable:

a)      Auto Sales Numbers

b)     RBI Policy

c)      IIP Data

d)     Falling crude oil & US 10-year treasury yield would fuel momentum in the Indian market

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