NIFTY OUTLOOK OF 23 MAY 2025

📈 Market Recap – May 23

• Sensex: Up 769 points (+0.95%) to close at 81,721

• Nifty 50: Up 243 points (+1.00%) to settle at 24,853

Despite the strong Friday rally, both indices logged weekly losses of over 0.65%, highlighting the market's ongoing volatility.

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🔍 Key Drivers of Friday's Rebound

1. Sectoral Support: Gains were led by Technology and FMCG stocks.

2. Corporate Earnings Optimism: Positive earnings results lifted sentiment.

3. Global Cues:

   • US Treasury yields softened, improving global risk appetite.

   • Short-covering and value-buying drove intra-day momentum.

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🌍 Global & Domestic Influences

• Global Concerns: US-India trade dynamics, US fiscal uncertainties, and currency market swings have kept volatility elevated.

• Domestic Positives:

  • Stable corporate earnings outlook

  • Hopes for interest rate cuts

  • Forecast of a normal monsoon

  • Long-term economic tailwinds

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🔮 Outlook

Analysts remain cautiously optimistic, citing:

• Strong domestic fundamentals

• Potential for continued growth

• However, global triggers could still introduce short-term fluctuations.