Indian Stocks Forecast: Nifty 50 and Sensex Trading Expectations on May 14

Indian Stock Market Set for Positive Start Despite Caution Over US-Iran War

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, following gains in global markets. Market participants will be closely watching the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.

The trends on Gift Nifty indicate a positive start for the Indian benchmark index, with the Gift Nifty trading around 23,527, a premium of nearly 65 points from the Nifty futures' previous close. On Wednesday, the Indian stock market snapped its four-day losing streak and ended marginally higher, with the benchmark Nifty 50 closing above 23,400 level.

Market Performance on Wednesday

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Market analysts are cautious about the short-term market outlook, citing a bearish trend. However, a pullback rally could occur if Sensex trades above 75,000. Above this level, 75,500 - 75,700 would be the next resistance zones for traders. On the flip side, 74,500 would act as an immediate support zone for day traders.

Sensex Prediction

Sensex failed to close above the 75,000 resistance mark, which is largely negative. The current market texture is volatile and non-directional, making level-based trading the ideal strategy for day traders. Shrikant Chouhan, Head Equity Research, Kotak Securities, believes that Sensex could retest 74,200, and further downside may continue, potentially dragging the index to 74,000.

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Nifty 50 Prediction

Nifty 50 formed a small green candle on the daily chart with a long upper wick and minor lower shadow, indicating hesitation and selling pressure at higher levels. Technically, this market action echoes ongoing volatility in the market. Nifty 50 is nearing a cluster support around 23,100 - 23,150 levels (61.8% Fibonacci retracement and the lower end of previous opening up gap of 8th April). Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes that there is a possibility of a bounce back from near the support in the short term.

Bank Nifty Prediction

Bank Nifty index ended 99.05 points, or 0.18%, lower at 53,456.15 on Wednesday, forming a small-bodied bearish candle on the daily chart with wicks on both sides, reflecting indecision in the near term. Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, believes that the immediate support for Bank Nifty is placed in the 53,100 - 53,000 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 52,600, followed by 52,300 in the short term.