📉 Market Overview – May 20, 2025

 Indian equity benchmarks extended their losing streak to a third straight session, dragged down by:

• Weak global cues

• Continued FII selling

• Profit booking at resistance levels

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📊 Nifty 50 Performance

• Opened: Firm, briefly reclaimed 25,000

• Faced resistance: Near 25,000 level

• Broke key support: Around 24,850

• Closed: 24,683.90 (▼261.55 pts / -1.05%)

🔍 Technical Pattern:

• Formed a large bearish candle with a lower high–lower low

• Indicates a corrective phase now lasting three sessions

📉 Short-term Outlook:

• Expected range-bound movement: 24,400–25,200

• Crucial support: 24,350–24,400 (aligns with:

  • Prior week’s low

  • 20-day EMA

  • 61.8% Fibonacci retracement of 23,935–25,116 rally)

• Indicators (e.g., Stochastic Oscillator) suggest overbought conditions are easing

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🏦 Bank Nifty Snapshot

• Formed a bear candle indicating profit booking

• Remains inside a falling channel for 19 sessions

• Current range: 53,500–56,000 (4-week consolidation)

• Last rally (49,157–56,098) saw only 38.2% retracement, implying underlying strength

🔍 Outlook:

• Bias remains constructive within range

• Buy-on-dips strategy preferred near key support:

  • 53,000–53,500 (confluence of retracement & 50-day EMA)

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🔻 Broader Market & Sectoral View

• Nifty Midcap 100: ▼1.3%

• Nifty Smallcap 100: ▼0.8%

• Sectoral losers (1–2% drop):

  • Auto

  • Bank

  • Pharma

  • FMCG

Reflects broad-based risk-off sentiment.

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🧭 Key Takeaways:

• Index has entered a technical pullback phase

• Short-term consolidation likely before next directional move

• Risk-off tone visible across sectors and broader indices

• Traders should monitor key supports for reversal signals