Nifty vs FTSE 100 Comparative Chart Analysis – May 2025 Outlook

As global markets remain sensitive to macroeconomic cues, relative strength between indices often highlights underlying opportunities. Today, we bring you a fresh comparative look at the Nifty 50 Index and the FTSE 100 (UKX), identifying their moves and upcoming possibilities with RSI divergence insights.

 Recent Performance Overview:

• Nifty 50: At fresh local highs, delivering a solid +11.63% YTD performance.
• FTSE 100: Lagging with a -9.71% YTD dip.

 Correlation Patterns:

• From July 2024 to December 2024, both indices moved largely in sync.
• Since February 2025, FTSE has underperformed while Nifty surged.
• Sharp dip around March 2025, followed by a strong Nifty recovery.

 RSI Divergence Insight:

Relative Strength Index (RSI) divergence is a valuable momentum indicator. Key observations:

• Nifty's RSI remains in bullish territory, confirming strength.
• FTSE's RSI shows bearish divergence, explaining its weaker recovery.

RSI divergence confirms hidden market strength in Nifty — making it a better bet for bullish setups.

 Current Chart Structure:

• Nifty 50: Consolidating near resistance highs — signs of a breakout attempt.
• FTSE 100: Modest recovery but still beneath prior swing highs.

 What to Watch Next:

 Scenario 1: Global Correlation Strengthens

• FTSE attempts a catch-up rally.
• Nifty sustains higher or mildly consolidates if global cues turn risk-off.

 Scenario 2: Divergence Continues

• Confirms India’s outperformance.
• Nifty & Bank Nifty continues to lead the global rally.

Strategic Takeaway:

• Monitor RSI divergence and MACD crossovers on both indices.
• If FTSE breaks swing highs, global bullish momentum could return.
• If FTSE weakens while Nifty breaks out, India-centric trades remain best.

 Conclusion:

Nifty 50 leads global indices in recovery strength. FTSE 100 lags, and unless it rallies beyond resistance, India-favored bullishness will persist.

This analysis offers strong cues for traders and investors in India, USA, UK, and Japan to align strategies accordingly.

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