Nifty 50 and Sensex have not gone any where in the past few weeks. The benchmark indices have been stuck inside a sideways range over the last three weeks. Nifty Bank index, on the other hand, has managed to sustain well above its support last week.

Overall, there is no major change in the broader picture. The outlook remains positive. We expect the Nifty and Sensex to make a bullish breakout of their range and go higher eventually. Nifty Bank index also has good supports to limit the downside from here.

FPIs Sell

The Foreign Portfolio Investors (FPIs) sold Indian equities heavily for the second consecutive week. The equity segment saw a net outflow of $1.49 billion. FPIs have to start buying Indian equities for the benchmark indices to go higher convincingly.

Video Credit: Businessline

Nifty (24,176.15)

Short-term view: A sideways range of 23,600-24,700 is a possibility for some time. A breakout on either side of this range will determine the next move.

Our preference is to see a bullish breakout above 24,700. Such a break can take the Nifty higher to 25,400-25,500.

The short-term outlook will turn negative only if the index breaks below 23,600. If that happens, Nifty can fall to 23,100-23,000 and even 22,400.

Medium-term outlook: The broader picture remains positive. We retain our bullish view of the Nifty rising to 26,500 in the medium term. Failure to breach 26,500 can continue to keep the index in a wide range of 22,000-26,500.

Ideally, we expect to see a bullish breakout above 26,500. Such a break will then clear the way for a fresh rally to 28,000-30,000 in the long term.

This bullish view will go wrong only if Nifty declines below 22,000. That looks less likely in the absence of any new negative trigger.

Nifty Bank (55,310.55)

Short-term view: The support at 54,000 mentioned last week is holding well. But the index seems to lack strength to get a decisive break above 56,000 for now. That keeps the downside open to see 54,000-53,700 in the near-term. A fall below 53,700 looks less likely though.

As long as the index stays above the 54,000-53,700 support zone, the bias will remain positive. Nifty Bank index can rise to 58,500-59,000 in the short term. This rise can happen either from here itself or after a dip to 54,000-53,700.

Nifty Bank index has to break 53,700 to come under pressure for more fall to 52,500 and lower.

Medium-term view: There is no change in the broader bullish outlook. We repeat that a strong close above 60,500 will boost the momentum. That in turn can take the Nifty Bank index higher to 64,000-65,000 in the medium term. It will also keep the upside open to see 68,000-69,000 in the long term.

The index has to decline below 50,000 in order to negate this bullish view.

Sensex (77,328.19)

Short-term view: Sensex is stuck in a narrow range of 76,250-78,400 over the last two weeks. Broadly, 76,000-80,000 is likely to be a wider range trade that looks to be possible for some time now. Within that, the bias is positive. As such, we can expect the Sensex to breach 80,000 and rise to 81,500-82,000 eventually.

A fall below 76,000 will only turn the short-term picture negative. If that happens, 73,000 can be seen on the downside.

Medium-term view: Outlook remains bullish. Sensex can see a fresh rise to 86,000 in the medium term. An extended rise to 90,000 is also a possibility if it manages to surpass 86,000. In case the index turns down from around 86,000, the 71,000-86,000 range can continue to remain intact for some more time.

From a long-term perspective, we see high potential for the Sensex to target 94,000 and even 98,000. This view will go wrong only if the Sensex declines below 71,000.

Nifty Midcap 150 (22,772.40)

After two weeks of consolidation, the Nifty Midcap 150 index has resumed its upmove. That keeps intact our overall bullish outlook.

Immediate support is in the 22,700-22,650 region. We expect the index to sustain above this support and go up to 23,000-23,100 in a week or two.

The price action thereafter will need a close watch. A decisive break above 23,100 will strengthen the bullish case. Such a break will clear the way for a rally to 26,000-26,500 first and then to 28,000-28,500 eventually in the long term.

If the index fails to breach 23,100 and declines below 22,650 subsequently, then a fall to 22,300-22,000 is possible. In that case, the 20,800-23,100 will still remain alive.

The overall picture will turn negative only if the index breaks below 20,800.

Nifty Smallcap 250 (17,437.50)

The rise to 17,500 mentioned last week has happened as expected. There is room to test 17,700 from here. We need to see what happens after that.

Failure to rise above 17,700 and a reversal from there can drag the Nifty Smallcap 250 index down to 17,000-16,500 again.

On the other hand, a decisive break above 17,700 can take the index higher to 18,300, the next crucial resistance.

Ideally, the index has to get a sustained rise above 18,300 to gain momentum. Only then the rally to 22,500-23,000 and 24,000 that we have been expecting will come into the picture. Our preference is to see this rally happen eventually, if not immediately.

This long-term bullish view will go wrong only if the Nifty Smallcap 250 index declines below 14,000. That looks unlikely as we see high chances for the index to sustain above 16,000 itself.

Published on May 9, 2026