Sensex Prediction for Wednesday, May 27: The Indian stock markets snapped their two-day winning streak on Tuesday, May 26, as escalating geopolitical tensions in the Middle East sparked a wave of profit booking. Besides, rising crude oil prices, weakness in banking stocks and a falling rupee weighed on the investor sentiment.
However, analysts believe the broader undertone for the market remains cautiously positive heading into Wednesday’s session, provided key support levels hold firm.
Created with AI. Errors are possibleSimilarly, the 50-share NSE Nifty dropped 118 points, or 0.49 per cent, to end at 23,913.70.
Market participants attributed the decline to profit booking after Monday’s sharp rally of 1,073 points, alongside concerns over surging oil prices amid reports of fresh US military operations in southern Iran.
Sensex gainers and losers on Tuesday, May 26
Sensex Prediction for Wednesday, May 27 by experts
After a powerful recovery rally, the BSE Sensex is set to face a crucial test of resilience on Wednesday as intense profit booking trimmed the gains. Market experts, however, view the pullback as a healthy pause rather than a trend reversal, pointing to vital technical floors that could determine the market’s next major move.
Sensex Prediction for Wednesday, May 27 by Vipin Dixena
According to SEBI-registered analyst, Vipin Dixena, the broader short-term structure of the market continues to remain constructive despite the correction on Tuesday.
“Sensex is witnessing mild profit booking after a sharp recovery rally, with the index slipping back toward the crucial 75,900–76,000 support zone near the 50 EMA,” the analyst said.
“The broader short-term structure still remains constructive as higher lows are intact, but momentum has cooled after facing resistance near 76,600. RSI has corrected from overbought levels and moved back toward neutral territory, indicating easing bullish momentum,” he noted.
“Holding above 75,900 can keep the recovery trend alive and may lead to another attempt toward 76,600–76,800, while a breakdown below this support could trigger deeper consolidation toward 75,300. Overall bias remains cautiously positive with resistance-led volatility,” Dixena concluded.
Sensex Prediction for Wednesday, May 27 by Hitesh Tailor
Echoing similar sentiments, Hitesh Tailor of Choice Broking said Tuesday’s session reflected profit booking after a sharp upside move, with traders turning cautious near higher resistance zones.
Technically, Tailor said Sensex faced resistance near the 76,600–76,700 zone and witnessed profit booking from higher levels, indicating that traders remain cautious near resistance areas.
“The index closed near the day’s low, reflecting weak short-term sentiment and lack of follow-up buying at higher levels. Immediate support is now placed around 75,400–75,700, while resistance is seen near 76,700–77,000,” he stated.
“Sustaining above the support zone may keep the broader structure stable, whereas a decisive breakout above resistance could revive fresh bullish momentum in the coming sessions,” he added.
For Wednesday, Tailor said, “The overall market bias remains cautiously positive as the index continues to hold above important support levels despite profit booking at higher zones. However, closing near the day’s low suggests that traders may remain selective and cautious in the near term. As long as Sensex sustains above the 75,400–75,700 support range, the broader undertone may remain stable with stock-specific trading opportunities.”
Sectoral performance on Tuesday, May 26
Sector-wise, Tailor stated Capital Goods, Metal, Utilities, Power, Commodities, Telecommunication, and Focused IT witnessed selective buying interest and managed to outperform during the session. On the other hand, Consumer Durables, Top 10 Banks, Financial Services, Hospitals, Realty, PSU Banks, and Private Banks witnessed weakness and profit booking. Banking indices traded under pressure, while FMCG, Auto, and IT sectors remained relatively range-bound with limited directional movement.
The BSE MidCap Select index went up by 0.27 per cent, and the SmallCap Select index edged higher by 0.26 per cent.
Among sectoral indices, Consumer Durables dropped 0.86 per cent, Top 10 Banks (0.61 per cent), Realty (0.52 per cent), Hospitals (0.52 per cent), PSU Bank (0.47 per cent) and Bankex (0.31 per cent).
Utilities jumped 1.15 per cent, Metal (1.02 per cent), Power (0.86 per cent), and Capital Goods (0.52 per cent).
The rupee depreciated 47 paise to close at 95.73 (provisional) against the US dollar on Tuesday.
Brent crude, the global oil benchmark, climbed 2.93 per cent to USD 98.96 per barrel.
US President Donald Trump on Monday said negotiations with Iran to end the war were progressing “nicely”, but officials pointed out that a final decision may take some time due to the complex communication networks Tehran deploys to consult with its supreme leader.
Foreign Institutional Investors (FIIs) bought equities worth Rs 821.75 crore on Monday, according to exchange data.
In the previous session on Monday, the Sensex jumped 1,073.61 points, or 1.42 per cent, to settle at 76,488.96. The Nifty surged 312.40 points, or 1.32 per cent, to end at 24,031.70.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
