Stock Market Outlook: Nifty 50 Eyes 25,500 in Bullish Run – Key Levels to Watch

India’s benchmark equity indices kicked off the week on a strong note, with the Nifty 50 edging closer to the 25,500 mark amid a sustained bullish momentum. Positive cues from global markets, a supportive monetary policy stance from the Reserve Bank of India (RBI), and encouraging economic data from the U.S. have all contributed to the rally.

At 9:19 am on Monday, the BSE Sensex surged 423 points (0.52%) to 82,618, while the Nifty 50 climbed 130 points (0.52%) to 24,132. The Nifty Bank index also hit a new all-time high of 57,049, gaining over 0.4%, driven by strong performances from banking majors such as Kotak Mahindra Bank, IDFC First Bank, Canara Bank, and Punjab National Bank.

Strong Finish to Previous Week

On Friday, both Sensex and Nifty advanced nearly 1% after the RBI announced an unexpected 50 basis point cut to the repo rate, along with a 100 basis point reduction in the cash reserve ratio (CRR). The aggressive policy move signals the central bank’s commitment to stimulating growth in a post-election economic recovery phase.

"The Nifty ended above 25,000 last week as sentiment improved following the RBI's larger-than-expected rate cuts," said Akshay Chinchalkar, Head of Research at Axis Securities. "Technically, the index successfully tested the 24,672 level and reversed the prior session’s weak close. If the Nifty crosses 25,116, a breakout above 25,260 could open the path toward 25,800 based on a completed pennant pattern."

Chinchalkar added that immediate resistance lies at 25,120, while support is expected around 24,820. Asian markets also provided a positive backdrop for Monday's gains.

Weekly Technical Setup

The Nifty 50 closed last week at 25,003.05, reflecting a 1.02% gain and marking a shift toward a bullish bias. According to analysts at Choice Broking, the index closing above the psychological 25,000 level indicates strong near-term momentum.

“Immediate support is seen at 25,000 and 24,800—these levels could act as buying zones on any dip,” said Choice Broking in a weekly note. “Resistance levels are placed at 25,100 and 25,300. A sustained move above 25,300 could pave the way for a rally toward 25,500 and beyond.”

Market Sentiment and Outlook

The current optimism is underpinned by multiple tailwinds: robust global economic indicators, improved foreign institutional investment (FII) inflows, and progress in India-U.S. trade talks. These developments are expected to support a continued uptrend in the short to medium term.

With the Nifty eyeing the 25,500 level in the coming weeks, investors and traders will be closely watching for key breakouts and support retests. Market participants are advised to stay alert to global cues and policy developments that could influence sentiment.

Key Levels to Watch:

Immediate Resistance: 25,100 | 25,300

Immediate Support: 25,000 | 24,800

Breakout Level: Above 25,300 could lead to 25,500–25,800 zone

Nifty Bank High: 57,049 (New All-Time High)