Equity benchmark index Nifty 50 opened 30 points higher on Friday (May 23), climbing to 24,909 within the first two hours of trade. After this initial surge, the index moved into a consolidation zone, ultimately closing with a gain of 243 points at 24,853.



The market witnessed a mixed bias over the week. In the early sessions, prices corrected sharply, erasing most of the gains from the previous week. However, a sharp rebound on Friday helped recoup some losses, with the index ending the week down 0.67%, just below the 24,850 mark.



The Nifty Midcap 100 and Smallcap 100 indices continued their outperformance, both gaining alongside the benchmark. The Nifty Midcap 100 Index rose 0.64%, while the Nifty Smallcap 100 Index advanced by 0.80%.



Barring the Nifty Pharma Index, all sectoral indices ended the day in the green. Among them, Nifty FMCG, Banks, and IT sectors saw the most significant gains.



IT stocks recovered Thursday's losses. Bernstein listed Infosys as its top pick among large-cap IT companies, and Coforge as its preferred choice among small- and mid-cap IT stocks. Bernstein expects Infosys to outperform peers in both revenue and margin stability. For Coforge, it expects high-teens growth over the medium term.



Shares of Honasa Consumer Ltd., the parent company of beauty and skincare brand Mamaearth, closed at a upper circuit of 20% on Friday. The company's net profit stood at ₹25 crore, down 18% year-on-year, but the Street seems to be taking solace from the fact that revenue rose 13% to ₹534 crore. The revenue growth has the Street upbeat, as the company has been struggling on this front for the last few quarters.



State-run Bharat Electronics Ltd. (BEL) shares regained Thursday's losses, ending the session 6% higher. Brokerage firm UBS upgraded BEL to "buy" from its earlier rating of "neutral" also raised its price target by 40% to ₹450.



Cash market data for May 23

• FII net bought ₹1,795 crore



• DII net bought ₹300 crore

The ongoing earnings season is entering its final phase next week, with investors closely tracking corporate performance across sectors. Traders will also be closely watching key data releases next week, including quarterly GDP figures for both India and the US.



Meanwhile, the arrival of pre-monsoon showers across parts of India lifted market mood ahead of an anticipated above-normal monsoon, which is expected to support rural demand and broader economic activity.



Looking ahead, markets are expected to remain firm, with participation likely from the broader market segments as macro and earnings tailwinds continue to provide support, said Siddhartha Khemka of Motilal Oswal.



Nandish Shah of HDFC Securities said the short-term trend of the Nifty remains positive, as it is placed above its 20-day EMA. Immediate resistance for Nifty is now seen at 24,946, followed by 25,116. On the downside, 24,748 and 24,685 could offer support.



Going ahead, consolidation may persist. A double bottom formation is visible on the hourly chart near 24,500, which also aligns with the 20DEMA acting as a crucial support zone, said Rajesh Bhosale of Angel One.



Bhosale expects the primary uptrend to resume only after a sustained move above 25,000. Untill then, a "buy on dips and sell on rise" strategy remains appropriate, he said.



LKP Securities' Rupak De said the Nifty appears to be consolidating within the range of 24,700–25,000. The short-term trend remains positive, with momentum likely to strengthen above 25,000.



"A decisive breakout above this level could give the bulls an upper hand and potentially trigger a rally towards 25,250–25,350. On the downside, the index has support at 24,700; a break below this level could attract bearish bets," De added.