Can Nifty reclaim 25,000 again? Key levels to watch on May 28

Foreign institutional investors (FIIs) net bought equities worth Rs 348 crore on May 27, while domestic institutional investors (DIIs) purchased Rs 10,104 crore.

Benchmark indices Nifty and Sensex are set for a quiet start on May 28, with GIFT Nifty indicating a mildly negative open around the 24,800 mark, slightly below Tuesday's close. For the month, the two are up 2 and 1.6 percent, respectively.

Markets rode a rollercoaster on May 27, with the Sensex swinging nearly 1,300 points in a dramatic session that saw bulls and bears battle for control. Heavy selling in auto, IT, and FMCG stocks dragged the Nifty and Sensex off their two-day winning streak. Yet, amid the chaos, the broader market held its nerve, ending marginally higher through a choppy session and offering a sliver of stability in an otherwise volatile day.

Foreign institutional investors (FIIs) net bought equities worth Rs 348 crore on May 27, while domestic institutional investors (DIIs) purchased Rs 10,104 crore. This marked the highest single-day buying since April 7, 2025, provisional data from the NSE showed. For the year so far, FIIs have been net sellers of shares worth Rs 1,20,510 crore, while DIIs have net bought Rs 2,53,972 crore worth of shares.

Here are the key levels to watch out for in today's session. 

"Technically, the Nifty index formed a bearish candle on the daily chart, indicating weakness. However, the index is still placed above its 21-Day Exponential Moving Average (21-DEMA), which is positioned near 24,556. As long as the index holds above this level, the probability of a pullback move can’t be ruled out. On the upside, the index is likely to face strong resistance near the 25,000–25,100 zone," Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment, said.

During the week, the Bank Nifty tested the upper band of its four-week consolidation range, which lies between 55,800 and 56,000. Analysts expect the index to continue trading within this broad range of 56,000 to 53,500 in the near term. A move above 56,000 would indicate a potential acceleration of the uptrend towards 56,700 in the coming sessions. Over the past 23 sessions, the index has retraced just 38.2 percent of the preceding nine-session rally from 49,157 to 56,098—seen as a shallow pullback that signals underlying strength and the possibility of a higher bottom formation. Immediate support is at 54,800, while short-term support is expected in the 54,000–53,500 zone, which coincides with key retracement levels and the 50-day exponential moving average.

The Nifty Put-Call ratio (PCR), which indicates the mood of the market, dropped to 0.82 on May 27, from 1.06 in the previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

The India VIX, which measures expected market volatility, continued its upward trajectory and crossed the 18 mark. It rose by 2.86 percent to 18.54 levels, signalling caution for the bulls. The elevated VIX suggests increased nervousness in the market, potentially pointing to volatility ahead.

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