Trade Setup May 30: Nifty rebounds sharply ahead of May 30; Buying opportunity in dips
The broader market staged a strong comeback on May 29 even as monthly derivatives expiry imparted early volatility. After an initial sell-off, the Nifty 50 rallied more than 200 points from session lows to close at 24,834—up 81 points—remaining comfortably above the 24,800 mark. IT shares led the rebound, bolstered by positive global cues after a U.S. court struck down blanket tariffs imposed by the Trump administration.
Mid- and small-caps outperformed again, with the Nifty Midcap 100 and Smallcap 100 rising 0.55% and 0.59%, respectively. Among sectoral indices, Metals, Realty, Pharma and IT saw notable gains; only FMCG and PSU Banks ended in the red. IndusInd Bank was the day's top Nifty gainer, climbing 2% despite SEBI barring five key executives—including former MD & CEO Sumant Kathpalia—from securities trading amid insider-trading proceedings.
Looking ahead to May 30, analysts see room for further consolidation with dips providing buying opportunities. HDFC Securities' Devarsh Vakil notes that the 20-day EMA, now at 24,618, should offer immediate support, while the 24,900–25,000 zone caps upside moves. Asit C. Mehta's Hrishikesh Yedve recommends a 'buy on dips' approach, pointing to resistance near 25,000–25,100.
Bajaj Broking expects the Nifty to maintain its positive bias toward 25,200–25,300, provided it holds above 24,700–24,650 short-term support (with deeper support at 24,400–24,500). Conversely, LKP's Rupak De warns that a breach below 24,670 could trigger a sharp correction toward 24,400/24,300, whereas a hold above that level might spark a swift recovery back to 25,000–25,150.
On the banking front, the Nifty Bank index ended at 55,546, up 129 points. SAMCO Securities' Om Mehra says a break above 55,900 could pave the way for retesting record highs, while a slide below 55,100 may invite mild selling pressure. Yedve adds that as long as the 21-day DEMA around 54,900 holds, a relief rally toward 56,000 remains on the cards; resistance looms at 56,000–56,100.
Corporate earnings will be in focus next, with quarterly results due from Apollo Hospitals, Vodafone Idea, Nykaa, AstraZeneca Pharma, Genus Power & Infra, Titagarh Rail Systems, KNR Constructions, EaseMyTrip, Inox Wind, Inox Green Energy, Bajaj Auto, Mazagon Dock, NBCC, Lemon Tree Hotels and Amara Raja.
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