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News Topical, Digital Desk : Trade Setup For Monday, 26 May 2025 : Indian stock market closed with a decline on weekly basis last week. However, on Friday, May 23, Nifty opened 30 points higher and reached 24,909 in the first two hours. After this, the index remained stable and closed at 24,853 with a gain of 243 points. The market fell sharply at the beginning of the week, almost erasing last week's gains. But there was a strong recovery on Friday. Nevertheless, at the end of the week, Nifty closed 0.67% down near 24,850.
Nifty Midcap 100 index gained 0.64% and Nifty Smallcap 100 index gained 0.80%. Both outperformed the benchmark index. All sectoral indices closed in the green except Nifty Pharma. Nifty FMCG, banks, and IT sectors saw the biggest gains.
Recovery in IT stocks
IT stocks recovered Thursday's losses. Bernstein named Infosys as the top pick among large-cap IT companies and Coforge as the top pick in small-mid cap. Bernstein expects Infosys to do better than others in revenue and margins, while Coforge will have high-teens growth in the medium term.
The US 10-year Treasury yield reached 4.63%, the highest since February. Religare Broking SVP Research Ajit Mishra said that mixed corporate results and delay in the India-US trade deal increased uncertainty. This led to profit booking and investors became cautious. The government will also see the impact of record dividend from RBI.
Vinod Nair, Head of Research, Geojit Investments, said, "Expectation of normal monsoon and reduction in crude oil prices will keep inflation under control. This will increase the scope for reducing interest rates, which will help in economic growth.
This week will be the last phase of Q4 results. Investors will also look at GDP data from India and the US. Pre-monsoon rains have started in India, which has improved the market mood. A more than normal monsoon is expected, which will increase rural demand and economic activity. Siddharth Khemka of Motilal Oswal said that the market will remain strong. Support will be received from macro and earnings.
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