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Trade Setup for May 16: Nifty aims for 25,500 after closing at a seven-month highAnalysts believe the overall trend of Nifty continues to be positive and the next upside levels to be watched around 25,250 and 25,500 in the near term. Immediate support is placed at 24,800.By Meghna Sen   May 15, 2025, 8:55:45 PM IST (Updated)3 Min ReadFollowing a period of weakness and heightened volatility over the past few sessions, the Nifty 50 index staged a strong breakout on Thursday, May 15. On the day of the weekly expiry, the index opened slightly higher and witnessed sharp swings in both directions during the first half of the session. However, the market saw major buying intra-day, pushing Nifty to its highest level in seven months.

The Nifty crossed the key psychological resistance of 25,000 for the first time since October 17, 2024, as broad-based buying lifted the entire market. As many as 49 out of the 50 stocks in the index advanced.

The index held onto its gains through the close, ending the day with a solid gain of 395 points to settle at 25,062.

Nifty Midcap 100 and Smallcap 100 indices continued their upward trajectory for the fourth consecutive session. Both the indices underperformed the benchmark indices where Nifty Midcap 100 Index gained 0.7%, while the Nifty Smallcap Index rose by 0.54%.

Two-wheeler stocks surged on positive commentary, with Hero MotoCorp emerging as the top Nifty gainer. Metal stocks continued to attract buying interest, as JSW Steel rose more than 4%.

Vodafone Idea shares rose 4% today after the company filed a fresh plea filed in the Supreme Court, seeking additional relief from its adjusted gross revenue (AGR) dues. Vi cited the earlier AGR judgment in its plea and is seeking a waiver of over ₹30,000 crore in dues, specifically the penalty and interest on the penalty component of the AGR levy.

Defence stocks continued to trade higher for the fifth straight day. Shares of state-run shipbuilder Cochin Shipyard rose 5% following the defence PSU's March quarter earnings.

On the earnings front, quarterly results from Bharat Heavy Electricals Ltd, Hyundai Motor India, Emami, Delhivery, are expected to drive stock-specific action in Friday's trading session.

Meanwhile, foreign investors were net buyers in the cash market on Thursday, while domestic investors were net sellers.

Nagaraj Shetti of HDFC Securities said the overall trend of Nifty continues to be positive and the next upside levels to be watched around 25,250 and 25,500 in the near term. Immediate support is placed at 24,800.

"The huge opening upside gap of May 12 remains open after four sessions of its formation and this gap could be considered as a bullish breakaway gap," Shetti added.

According to LKP Securities' Rupak De, the recent consolidation breakout, along with a move above the swing high, has increased the probability of the index reaching 25,690 in the short term.

"Immediate resistance is placed at 25,360, above which further upside potential may be unlocked. On the downside, 24,400 is expected to act as strong support in the short to medium term. A decisive break below this level could cause the ongoing rally to lose momentum. Until then, a buy-on-dips strategy is likely to remain effective," he added.

Here are the stocks to watch ahead of Friday's trading session:

- Bajaj Auto board approves additional investment of up to Euro 125 million (approximately ₹1,199.92 crore) in Netherlands-arm Bajaj Auto International Holdings BV.

- LIC Housing Finance: Profit up 25.4% at ₹1,368 crore vs ₹1,090.8 crore YoY. NII down 3.2% at ₹2,166.5 crore vs ₹2,237.6 crore YoY. Recommends dividend of ₹10 per share for FY25.

- Alkem Lab says arm Enzene Biosciences has detected a cyber security incident on its US where business eMail IDs of certain employees were compromised. The incident resulted in a fraudulent transfer of funds. Arm Enzene has employed independent external agencies to investigate the incident.

- RVNL bags order worth ₹115.8 crore from Central Railway.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: May 15, 2025 8:40 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexNifty 50share market todayTrade setup