Market Outlook for May 18: Key Events and Indicators to Watch Ahead of the Opening Bell

Nifty 50 Remains Below Consolidation Range as Bears Tighten Grip

The Nifty 50 continued to trade below its three-week consolidation range of 23,800-24,600 on May 15, falling 0.2 percent and sustaining below all key moving averages. Momentum indicators showed sideways action, with the index failing to close above the previous day's high while remaining below the 23.6 percent and 38.2 percent Fibonacci retracement levels of the April rally.

If the Nifty 50 moves above 24,000, the 24,300-24,500 range will be crucial to watch, according to experts. However, until then, consolidation with range-bound trading may continue, with immediate support placed at 23,400, followed by 23,250.

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Nifty 50 Key Levels

The Nifty 50 formed a bearish candle with an upper shadow on the daily charts, indicating selling pressure at higher levels. The index also remained below all key moving averages, which continued to trend downward. The RSI, at 45.13, sustained below the signal line, while the MACD remained below both the reference and zero lines, although weakness in the histogram's red bar faded slightly further.

Bank Nifty Key Levels

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The Bank Nifty fell 0.77 percent and formed a red candle within the previous day's trading range, while sustaining below the 38.2 percent Fibonacci retracement levels of both the April rally and the correction from the February high to the April low. The banking index also remained below all key moving averages, which maintained a downward bias. The RSI, at 41.60, stayed below the signal line, while the MACD sustained below both the reference and zero lines, with weakness persisting in the histogram.

Nifty Call Options Data

The maximum Call open interest was seen at the 24,000 strike, which can act as a key resistance level for the Nifty in the short term.

Nifty Put Options Data

The 23,000 strike holds the maximum Put open interest, which can act as a key support level for the Nifty in the short term.

Bank Nifty Call Options Data

The maximum Call open interest was seen at the 55,000 strike, which can act as a key resistance level for the Bank Nifty in the short term.

Bank Nifty Put Options Data

The 54,000 strike holds the maximum Put open interest, which can act as a key level for the Bank Nifty in the short term.

Funds Flow (Rs crore)

No data available.

Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 1.01 on May 15, from 1.17 compared to the previous session. An increasing PCR or being higher than 0.7 or surpassing 1 indicates selling more Put options than Call options, generally indicating a firming up of a bullish sentiment in the market.

India VIX

India VIX rose 0.95 percent to 18.79 and hovered around its short- and medium-term moving averages. A fall below the 17 level is necessary for bulls to gain support, while a rise above the 20 level could increase risks for bullish traders.

Long Build-up (36 Stocks)

A long build-up was seen in 36 stocks, indicating an increase in open interest (OI) and price.

Long Unwinding (76 Stocks)

76 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding.

Short Build-up (72 Stocks)

72 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.

Short-Covering (29 Stocks)

29 stocks saw short-covering, meaning a decrease in OI along with a price increase.

High Delivery Trades

No data available.

Stocks Under F&O Ban

Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit. Stocks added to F&O ban: Nil, Stocks retained in F&O ban: Kaynes Technology India, SAIL, Stocks removed from F&O ban: Nil.