Bulls drove benchmark indices Sensex and Nifty to all-time highs on May 24 at 75,582 and 23,004, respectively. With record highs being clinched day after day, analysts expect the bullish momentum in markets to continue and see Nifty clinching 23,150 soon.

Around morning, the Sensex was up 155.62 points or 0.21 percent at 75,573.66, and the Nifty was up 35.20 points or 0.15 percent at 23,002.9. The market breadth was in favor of gainers - about 1,734 shares advanced, 1,056 shares declined, and 100 shares unchanged.

Sameet Chavan, Head Research, Technical and Derivative - Angel One suggested traders avoid complacency and refrain from taking aggressive overnight positions going into the weekend, as volatility related to election results persists in the market.

"We expect the bullish trend to continue, with prices likely to test the 23,150 - 23,250 zone in the next few sessions. On the downside, the previous resistance around 22,750 - 22,800 is likely to act as the next support level," he added.

V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, also expects the market's bullish trend to continue in the near term. "What makes this rally healthy is the fact that it is being led by fairly valued large caps with the overvalued broader market taking a backseat. The trend of outperformance of large caps is likely to continue," he said.

Meanwhile, broader markets outperformed frontline indices, with BSE Midcap and BSE Smallcap surging up to 0.5 percent on May 24 morning. India's VIX, which measures near-term volatility rose marginally to 21 level.

Among sectors, Nifty Metal and Nifty Media indices were top performers as they climbed up to 0.8 percent. On the flipside, Nifty Pharma and Nifty FMCG indices were the worst performers as they declined 0.4 percent each.

Global markets are negative; Japan's inflation cools down

All major averages in the US market ended on a negative note overnight. The Dow plummeted by over 600 points on May 23, marking its worst day of 2024 as the Purchasing Managers Index for May rose unexpectedly by 3.5 percentage points to its highest level since last June.

Tech-heavy NASDAQ Composite and the S&P 500 indices dropped 0.4 percent and 0.7 percent, respectively on May 23.

Asia-Pacific markets also largely fell this morning, with Hong and Japan leading losses after investors digested inflation print. The Nikkei 225 slid 1.24 percent, while the broad-based Topix fell 0.49 percent.

Japan’s core inflation eased to 2.2 percent from 2.6 percent in March, in line with expectations. Headline inflation also slowed to 2.5 percent, down from March’s 2.7 percent figure.

In Hong Kong, Hang Seng was down 1 percent, whereas South Korea's Kospi and Australian S&P 200 indices fell over a percent each.