Nifty 50, Sensex Forecast: Indian Stock Market Outlook for May 18
Indian Stock Market Set to Open Lower Amid Global Market Cues
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday, tracking weak global market cues amid a spike in crude oil prices due to escalating US-Iran war in the Middle East. The trends on Gift Nifty indicate a negative start for the Indian benchmark index, with the Gift Nifty trading around 23,539, a discount of nearly 105 points from the Nifty futures' previous close.
Recent Market Performance
On Friday, the Indian stock market ended lower on profit booking, with the Nifty 50 closing below 23,650 level. The Sensex dropped 160.73 points, or 0.21%, to close at 75,237.99, while the Nifty 50 settled 46.10 points, or 0.19%, lower at 23,643.50.
Sensex Prediction
Sensex formed a bearish candle on weekly charts, and is currently trading comfortably below short-term moving averages, which is largely negative. According to market analysts, a pullback is likely to continue if Sensex manages to trade above 75,000. On the higher side, the 50-day SMA at 75,800 will be a key level to watch. A move above 75,800 could lead to a test of the 20-day SMA or 77,000 – 77,300.
| Predicted Levels | Sensex | Nifty 50 | Bank Nifty |
|---|---|---|---|
| Resistance | 75,800 | 23,800 | 54,400 |
| Support | 74,500 | 23,200 | 53,100 |
| Downside Target | 74,000 | 23,000 | 52,400 |
Nifty 50 Prediction
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Nifty 50 index formed a small-bodied candle on the daily chart with a noticeable upper wick, indicating selling pressure at higher levels. The underlying trend of Nifty 50 remains choppy, and the index is expected to oscillate within a broader high-low range of 23,800 - 23,200 levels for this week.
Bank Nifty Prediction
Bank Nifty index ended 418.60 points, or 0.77%, lower at 53,710.35 on Friday. For the week, the Bank Nifty index plunged 2.89% and formed a sizable bearish candle, indicating sustained selling pressure. According to market analysts, a decisive break below the 53,000 level could trigger further downside, dragging the Bank Nifty index towards 52,400, followed by 51,800 in the short term.
Investor Takeaway
Expect a negative start for the Indian benchmark index due to weak global market cues.
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