Weekly Market Wrap: Nifty Surges Past 25,000 – What's Next?

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The Nifty 50 index closed the week at 25,019, posting an impressive 1,000-point rally from the previous week’s close. The index made a high of 25,116 and a low of 24,378. The rally was driven by short covering and a surprise truce between India and Pakistan, which injected a wave of optimism into the market.

More importantly, Nifty broke out of the consolidation range of 23,200–24,600, closing strong above the psychologically significant 25,000 mark – a clear sign of bullish sentiment.

What to Expect Next Week (Outlook May 20–24)
Expected Range: 24,450 – 25,600

A breakout above 25,600 could open the doors for a retest of the all-time high (ATH) at 26,277.

As long as Nifty trades above 23,800, the broader trend remains intact.

Monthly Chart Patterns to Watch
A bullish "W" pattern could be forming, which ideally would require a pullback from current levels before resuming upward.

On the flip side, a bearish "M" pattern may emerge if the index tests ATH and faces rejection, which could trigger a sharp correction of 2,500–2,600 points.

For now, I remain cautious until the monthly time frame confirms a clear bullish breakout.

Global Markets Check: S&P 500 Eyes Key Resistance

The S&P 500 closed at 5,958, gaining 300 points week-on-week. As anticipated, a breakout above 5,770 propelled the index to meet all short-term targets of 5,821 / 5,850 / 5,900.

Key Level to Watch: 6,013
This is a major Fibonacci resistance — the same level where the market started correcting back on March 3, 2025.

A weekly close above 6,013 would be bullish, potentially triggering rallies toward 6,091 / 6,142 / 6,225.

However, a breakdown below this week’s low of 5,786 would confirm a failed breakout, with downside targets at 5,637 / 5,551 / 5,458.

Momentum traders, get ready – sharp moves are coming either way!

Penafian

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