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Trade Setup for May 28: Nifty aims for a rebound from lower levels after minor pullbackNifty's short-term outlook remains positive, with the potential to reach the 25,000–25,150 range.By Meghna Sen   May 27, 2025, 7:49:14 PM IST (Published)3 Min ReadThe benchmark Nifty 50 index ended a highly volatile session in the red on Tuesday, May 27. After hitting an intraday high of 24,973, the index dropped over 300 points before trimming some losses.

The market closed near the day’s low, with the Nifty ending below the 24,900 mark. The index declined 175 points to settle at 24,826.

Bucking the overall market trend, the Nifty Midcap 100 and Smallcap 100 indices managed to close in positive territory. The Nifty Midcap 100 Index rose by 0.15%, while the Nifty Smallcap 100 Index advanced by a modest 0.10%.

IT, FMCG, and Auto sectors snapped their two-day gaining streak.

Defence stocks rose for the fifth consecutive session, with Garden Reach Shipbuilders & Engineers gaining over 3%.

IndiGo shares declined 2% as co-founder Rakesh Gangwal is likely to have further trimmed his stake in parent company InterGlobe Aviation Ltd., following a block deal that took place on Tuesday.

Shares of electric bus manufacturer Olectra Greentech Ltd. fell 7% despite clarification on Maharashtra electric bus order.

Another stock TTK Prestige Ltd., the manufacturer of domestic appliances, reported its March quarter results today, which were lower on a year-on-year basis on most parameters. The stock fell as much as 8% in response to the results.

Going ahead, market attention will shift to earnings reports from IRCTC, Bata India, MTNL, among others. Additionally, LIC, which released its earnings after market hours today, will also remain in focus.

In a positive development, the Indian Meteorological Department (IMD) announced that the arrival of southwest monsoon over Kerala on May 24—the earliest onset since 2009—providing early relief and boosting expectations of a good agricultural season ahead.

According to Siddhartha Khemka of Motilal Oswal, investors are now eyeing key global events, including the release of the minutes from the latest FOMC meeting, which could provide cues on the Fed's policy outlook amid persistent inflation and fiscal stress. Markets are likely to remain volatile in the near term, with a watchful eye on global developments, trade negotiations, and remaining corporate earnings.

LKP Securities' Rupak De said the Nifty has been consolidating for the past 10–11 days, setting an indecisive tone among investors. However, the overall trend remains strong as the index continues to sustain above the short-term moving average.

Further, the analyst said that the short-term outlook remains positive, with the potential to reach the 25,000–25,150 range. On the lower end, support is placed at 24,700.

The Nifty has been finding it difficult to cross 25,116 resistance and continuing its choppy trend, said Nandish Shah of HDFC Securities. "On the downside, 24,700 and 24,462 could offer support in the Nifty. A decisive level above 25,116 would bring back the bullish momentum in the Nifty."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.Check 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