Indian stock markets are expected to remain volatile on Monday, May 25, 2026, as investors continue to closely monitor escalating geopolitical tensions between the United States (US) and Iran, rising crude oil prices, and global bond market movements.
Analysts believe the near-term direction of the market will largely depend on whether benchmark indices can sustain above crucial resistance levels amid persistent uncertainty in global markets.
Stock Market Outlook Today May 25, 2026: Sensex, Nifty Prediction for Monday Amid US-Iran Tensions
Benchmark indices ended the previous session on a positive note on May 22, supported mainly by buying in private banking stocks and a mild recovery in the Indian rupee. However, market sentiment remained cautious through most of the session due to profit booking at higher levels and concerns surrounding crude oil prices and geopolitical risks.
The BSE Sensex gained 231.99 points, or 0.31%, to close at 75,415.35, while the NSE Nifty 50 advanced 64.60 points, or 0.27%, to settle at 23,719.30.
Global investors remained focused on fresh comments from US President Donald Trump regarding ongoing negotiations with Iran. Trump stated that he had instructed negotiators “not to rush into a deal” with Iran, adding that “time is on our side”. He also said the US blockade in the Strait of Hormuz “will remain in full force and effect until an agreement is reached, certified, and signed”.
The remarks further intensified concerns over global oil supplies, keeping crude oil prices elevated and increasing fears around inflation and global economic stability. Analysts believe continued pressure on oil prices could remain a major challenge for emerging markets such as India, which is heavily dependent on crude imports.
Nifty Prediction Today, 25 May 2026; Check Key Levels to Watch
According to analysts at Bajaj Broking Research, the Nifty formed a bullish candlestick pattern during the week, although the broader trend still reflects consolidation and corrective pressure.
Nifty formed a bullish candlestick pattern with small shadows in either direction which remained contained inside previous week price range signaling consolidation amid stock specific action.
“Going ahead, in the coming week failure to move above the breakdown area of 23,800-23,900, will keep the bias corrective and can lead to testing of the support area of 23,200-23,000. While a move above the breakdown area will signal pause in the downtrend and open upside towards 24,200 & 24,600 levels being the high of April 2026,” Bajaj Broking Research.
The brokerage further noted that market volatility is likely to remain elevated due to global developments.
“Volatility is expected to remain high with Key focus on the developments around US-Iran tensions, oil-price trajectories and quarterly corporate earnings.”
From a technical perspective, analysts believe the Nifty must sustain above the 23,800-23,900 zone to confirm a reversal in the ongoing corrective trend. On the downside, immediate support is seen between 23,200 and 23,000.
Bank Nifty Outlook for Monday, 25 May 2026
Bank Nifty also witnessed buying support near lower levels during the previous week, helping the index recover from recent declines.
According to Bajaj Broking Research, “Bank Nifty in the weekly chart formed a bullish candlestick pattern with a lower high and a lower low highlighting buying demand at lower levels from near the key support area of 52,400-52,700 levels. Index likely to consolidate in the range of 52,700-54,700. A move above 54,700 will open further upside towards 56,000 levels in the coming week.”
The brokerage added that Bank Nifty still needs to establish a higher high and higher low formation on daily charts to confirm a stronger reversal.
“From a short-term perspective Index need to start forming higher high and higher low on a sustained basis in the daily chart and move above the recent breakdown area of 54,500-54,700 to signal a reversal of the corrective trend. Key support is placed at 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456).”