Stock Market Outlook Today on May 29: Will Sensex, Nifty Extend Gains After Positive Global Cues? Key Levels And Stocks To Watch

Stock Market Outlook Today, May 29, 2026: After strong overnight gains on Wall Street and buoyant Asian markets, the Indian stock market is likely to open a cautiously positive note today. The benchmark indices, Sensex and Nifty 50, were set to open flat to positive on Friday. The GIFT Nifty was up 8 points or 0.03% at 23,881.50 at 7:06 AM. However, investors will keep an eye on crude oil prices, foreign institutional inflows and events unfolding in the Middle East for further clues, though better global sentiment has eased some concerns. Investors can focus on individual stock performance since they might get confused in the present macroeconomic environment, said market experts.

Markets around the globe lift sentiment before the opening bell

Investor confidence has been buoyed by reports that the United States and Iran have tentatively agreed to extend their ceasefire arrangement for another 60 days. The news sparked a rally in global equities.

Major US indices closed at record highs. Technology stocks and easing geopolitical concerns helped the S&P 500 gain 0.58% to 7,563.63 and the Nasdaq Composite climb 0.91% to 26,917.47.

Asian markets traded strongly higher on Friday morning as well. Japan’s Nikkei 225 rose 1.85%. South Korea’s Kospi was up 2.23%. Australia’s S&P/ASX 200 gained 1.03%. Hong Kong Hang Seng futures were also higher.

What happened in the stock market last session?

Indian benchmark indices concluded marginally down in the last trading session, as investors remained on the back foot due to geopolitical worries and the absence of any fresh trigger. The cautious approach had all the participants away from the trading ring. Thus, it was just another day of range-bound action on the Indian bourses.

On Wednesday, the Sensex ended down by 141.90 points, or 0.19 per cent to 75,867.80, while the NSE Nifty 50 ended down by 6.55 points, or 0.03 per cent at 23,907.15. The Bank Nifty ended down 239.05 points or 0.43 per cent at 54,853.85 as banking stocks continued to reel under pressure. The Indian markets are currently undergoing consolidation in very tight bands, reflecting a lack of conviction. The Nifty traded between the intraday range of 23,858 and 23,983.

Sectors to watch: Auto takes lead, media rises

The auto sector was the best-performing segment of the market.

Nifty Auto was the only sectoral index to close in the green, up 1.45% to 26,864.20. The strength is attributed by analysts to relatively stable crude oil prices and confidence in domestic demand trends.

However, Nifty Media was the top gainer among the sectors, gaining 3.05% to 1,417.15 on stock-specific buying in broadcasting and entertainment companies.

Nifty IT, meanwhile, fell 0.25% to 28,906.70, extending its recent weakness on global technology sector worries.

Stocks to watch today on May 29

Investors are advised to focus on a combination of defensive and event-driven themes on Friday’s trade, as noted by market analysts Ankit Jaiswall, Senior Research Analyst at Univest, and Kunal Singla, Associate Director at Univest.

Mahindra & Mahindra (M&M) 

Jaiswal and Singla stay positive on M&M as the broader auto remains in the outperformance mode. Nifty Auto was the lone positive sector in the previous session, and M&M could continue to remain relatively resilient even if overall market sentiment weakens.

Infosys Ltd

Analysts see Infosys as a contrarian recovery play. The stock might see bargain buying if it manages to reclaim the ₹1,175 level after witnessing four weak sessions in five trading days.

HDFC Bank

HDFC Bank continues to remain a core support stock for the banking space. Analysts said the stock’s ability to hold above key support levels will be crucial to determine if Bank Nifty stabilises after two consecutive sessions of decline.

L.I.C

The stock will be in focus as it turns ex-bonus after LIC’s 1:1 bonus issue. Analysts say the post-bonus price discovery phase could offer new trading opportunities.

Media Stocks 

Nifty Media soared 3.05% post-rally, and Jaiswal & Singla expect investors to follow media stocks for momentum-based trades.

Nifty outlook: Key level at 23,750, say analysts

Ankit Jaiswal is of the view that the 23,750 mark is the defining support zone for the session.

Jaiswal said the index would be in a strong position if it holds 23,580-23,640, followed by a jump above 23,750 in the first hour of trading. This would mean that support for the medium term remains intact. He, however, cautioned that a close below 23,750 could fuel a selling spree, pulling the index towards 23,550.

Kunal Singla’s Trading Strategy

Kunal Singla suggests investors should not buy immediately after the opening bell.

Trader should wait for the first 15-minute candle to close above 23,700 to initiate fresh long positions, according to Singla. He also notes that Friday’s session carries additional risk, as traders may reduce positions before the weekend amid the unresolved geopolitical uncertainty surrounding Iran.

Commodity update

Crude oil fell as fears of supply disruption in the Strait of Hormuz eased following the announcement of a potential extended ceasefire.

Brent crude oil: $92.62/barrel
WTI Crude: $87.66 a barrel

Spot gold traded firmer amid continuing geopolitical uncertainty at the $4,507.55/oz level.

What Should Investors Watch Today?

Indian equities are expected to open flat, with GIFT Nifty indicating a flat start, as global sentiment improved substantially overnight. However, analysts Ankit Jaiswal and Kunal Singla are cautious, citing geopolitical uncertainties, foreign fund flows and elevated oil prices. Today’s focus will be on the crucial 23,750 level for Nifty and stock-specific opportunities in auto, media, banking and special-situation plays like LIC.

Also Read: Stocks To Watch Today on May 29: Zydus, Reliance, Coal India, HCLTech, Among Key Movers Today

(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.)