Indian stock markets ended sharply higher on May 26, with the Sensex climbing 1,073.61 points, or 1.42%, to close at 76,488.96. During the session, the index surged as much as 1,143.72 points, or 1.51%, to touch an intraday high of 76,559.07. The Nifty 50 rallied 312.40 points, or 1.32%, to settle at 24,031.70, reclaiming the 24,000 mark amid broad-based buying across sectors. According to reports from LiveMint, broader market participation remained positive with 2,785 stocks advancing, 1,535 declining, and 211 remaining unchanged on the BSE. The rally was driven by sharp decline in global crude oil prices, with Brent crude falling nearly 5.6% to below the $100-per-barrel mark as optimism grew around a potential US-Iran peace agreement.
The rally was triggered by sharp decline in global crude oil prices and optimism around US-Iran peace negotiations. As reported by LiveMint, Brent crude slipped nearly 5.6% to below the $100-per-barrel mark as optimism grew around a potential US-Iran peace agreement. Lower crude oil prices are considered positive for India because the country imports a large portion of its energy requirements. US President Donald Trump stated that Washington and Iran had "largely negotiated" a memorandum of understanding on a peace deal, further supporting market sentiment. The Indian rupee extended gains for the third straight session, appreciating 47 paise to close at 95.23 against the US dollar, while India VIX dropped 6.74% to 16.70, signalling easing nervousness among traders. Market sentiment was also aided by the rupee's appreciation against the US dollar and robust buying interest in banking and financial stocks.
The rally was broad-based with all 16 sectoral indices ending in the green, reflecting strong participation across sectors. Nifty Consumer Durables gained 1.20%, while Nifty Bank advanced 2.29% and Nifty Financial rose 2.24%. Among the biggest gainers on the Nifty were Tata Motors Passenger Vehicles (up 2.86%) and Eicher Motors (strong investor interest after reporting quarterly earnings above expectations). Oil marketing companies emerged as major gainers after crude prices cooled sharply, with Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation gaining between 4% and 4.5%. Banking heavyweights also supported the rally, with HDFC Bank rising nearly 2% and ICICI Bank advancing 1.3%. Nearly 150 stocks touched fresh 52-week highs on the BSE, highlighting strong bullish momentum across the market.
Raja Venkatraman, Co-founder of NeoTrader and stock research platform MarketSmith India, recommended buying five shares - JSW Steel Ltd, Bank of Baroda, Adani Energy Solutions Ltd, ION Exchange (India) Ltd, and Fedbank Financial Services Ltd. According to LiveMint, JSW Steel (CMP ₹1,289.40) has a target price of ₹1,410 with buy above ₹1,292 and stop loss at ₹1,240. Bank of Baroda (CMP ₹272.25) has a target price of ₹288 with buy above ₹273 and stop loss at ₹266. Adani Energy Solutions (CMP ₹1,404.30) has a target price of ₹1,560 with buy above ₹1,405 and stop loss at ₹1,325. ION Exchange (India) Ltd (CMP ₹408) has a target price of ₹470 in two to three months with buy at ₹404-410 and stop loss at ₹380. Fedbank Financial Services Ltd (CMP ₹165) has a target price of ₹200 in two to three months with buy at ₹163-166 and stop loss at ₹152.
The technical analysis reveals key metrics for each recommendation. JSW Steel shows P/E of 48.30, 52-week high of ₹1,320, and volume of 8.1M with support at ₹1,240 and resistance at ₹1,450. Bank of Baroda has P/E of 7.02, 52-week high of ₹325.55, and volume of 11.73M with risk factors including intense deposit competition and asset quality risks. Adani Energy Solutions shows P/E of 295.33, 52-week high of ₹1,463, and volume of 3.05M with support at ₹1,250 and resistance at ₹1,750. ION Exchange has P/E of 30.08, 52-week high of ₹580.75, and volume of ₹12.67 with reclaimed 21-DMA on above-average volume. Fedbank Financial Services shows P/E of 16.89, 52-week high of ₹178.48, and volume of ₹56.31 crore with technical analysis showing breakout from Cup-with-handle base. Technical analysts believe the Nifty reclaiming both the 20-day and 50-day exponential moving averages is a positive signal for short-term momentum, with immediate support around 23,800 and resistance near 24,200. A sustained breakout above 24,200 could open the door for a move towards 24,350 levels.
