Stock Market Outlook Today, May 26: Nifty Eyes 24,400 On Expiry Day; Will Banks And Auto Drive Another Rally?
Stock Market Outlook Today, May 26, 2026: Dalal Street is to open on a positive note today after a strong session on Monday. Positioning and expiry dynamics in place for what could be a volatile session. On Monday, the Nifty 50 closed above the psychological 24000 mark while the Sensex rallied over 1000 points, led by financials and fresh strength in the auto and infrastructure counters.
Today’s market set-up is not just about yesterday’s rally but also about whether the move has enough momentum to carry it through to monthly expiry. Institutional flows, options positioning and global cues are expected to shape intraday direction, with stock-specific opportunities remaining high, analysts at Univest said.
The Nifty 50 settled 312.40 points higher, or 1.32% at 24,031.70 after touching an intraday high of 24,054.40.
Buying was seen mostly in auto, banking and financial stocks and infra names, along with a few heavyweight counters that gave a push to benchmark indices during the session.
Leading contributors to the Nifty rally included Eicher Motors (up 6.45%), followed by Adani Enterprises (up 4.77%), Bajaj Finance (up 2.99%), and momentum in the passenger vehicle space of Tata Motors and Larsen & Toubro (up 2.76 per cent), displaying broad participation in cyclical as well as growth-driven stocks.
HDFC Bank, Bajaj Finserv, SBI, Kotak Bank and Shriram Finance were also among the other support.
The BSE Sensex rose 1,073.61 points (+1.42%) to 76,488.96, led by gains in financials.
The bias is still on the positive side approaching expiry, said Ankit Jaiswal, senior research analyst at Univest.
Levels to watch for today:
Immediate support: 24100
Immediate support zone: 23938.
Target on the Upside: 24400
Gap-up alert: Above 24200
If Nifty opens higher and sustains above 24,100 in the opening phase, then the bulls may continue their momentum through the session: Market view
HDFC Bank
HDFC Bank is among the top-performing sectors on Monday after financial services, one of the strongest names in private banking. Bank Nifty expiry positioning is active; stocks are important for index direction.
Mahindra and Mahindra
Auto was the best-performing segment in the last session. M&M could continue to be active as investors keep rotating into cyclical and domestic growth themes.
Eicher Motors
Eicher Motors leads Nifty gainers and remains in focus amid hopes of momentum buying to continue.
TCS
IT lagged in the face of the broader market rally. This divergence can provide room for technical recovery if global sentiment improves, said Kunal Singla, associate director at Univest.
IOC
IOC and other energy names could be helped by better refining margin expectations as oil prices remain below April highs despite the recent volatility.
Auto: Continued Positive Momentum
Nifty Auto was the strongest sector on Monday, up 2.31%. Momentum traders will be watching leadership.
Banking & Financials: Anchor on Expiry Day
Financial services gained 1.54%, led by large private and PSU lenders. If Bank Nifty stays above 54,500, sentiment may get a boost.
IT: Look for Mean Reversion
IT was the only sector to end in the red. A rebound in the tech leaders could aid in spreading market participation.
Pharma: Rebound on Target
Recent corrections on earnings might open the door for defensive buying.
U.S. Markets
Wall Street was closed for Memorial Day. US indices rose before the break on optimism around AI-linked sectors and easing geopolitical concerns.
Asian markets
The Asian markets traded to a mixed start, offering a cautious bullish bias for the global mood. Korea’s KOSPI has been bid, supported, whilst Japan’s Nikkei 225 is drifting lower with some selective profit taking from the investors and general risk aversion in the region.
Commodities
Oil bounced back from heavy losses on geopolitical events that reminded investors of a looming supply concern. Safe haven demand also pushed gold higher.
Today’s session could be more about positioning, expiry flows and sector rotation rather than earnings. Banking & auto still remain the strongest momentum pockets, with IT possibly trying for a catch-up move.
If Nifty sustains above 24,100, then traders will be looking for signs of strength towards 24,400.
Also Read: Stocks To Watch Today, May 26: BEL, Wipro, JSW Energy, RVNL, Raymond And More In Focus
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
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