Nifty 50, Sensex Outlook for 20 May: Market Analysts' Expectations

Indian Stock Market to Open Lower Amid Global Weakness

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Wednesday, tracking weak cues from global markets. Rising inflation and elevated bond yields have contributed to the bearish sentiment. According to the Gift Nifty, a gap-down start is anticipated for the Indian benchmark index, with the level trading around 23,450, a discount of nearly 162 points from the Nifty futures' previous close.

On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 23,650 level. The Sensex dropped 114.19 points, or 0.15%, to close at 75,200.85, while the Nifty 50 settled 31.95 points, or 0.14%, lower at 23,618.00.

Market Predictions

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Sensex Prediction

Sensex formed an Inverted Hammer candle on the daily chart, suggesting indecisiveness after the recent rebound move. According to Shrikant Chouhan, Head Equity Research at Kotak Securities, the short-term market texture is non-directional, and range-bound activity is likely to continue in the near future. Key resistance and support levels for Sensex are:

Nifty 50 Prediction

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Nifty 50 index formed a small bearish candle with a long upper shadow on the daily chart, signaling selling pressure at higher levels. Analysts at HDFC Securities and Choice Broking note that the 23,800 – 23,850 zone continues to act as a major resistance area for Nifty 50, while the 23,350 – 23,400 range is expected to provide strong support.

Bank Nifty Prediction

Bank Nifty index ended 127.85 points, or 0.24%, lower at 53,409.15 on Tuesday, forming a small-bodied candle on the daily chart, indicating lack of strong directional conviction and subdued price action. According to SBI Securities, the broader trend of the Bank Nifty index remains weak, as it continues to trade below its key moving averages.

Key resistance and support levels for Bank Nifty are:

The market setup remains cautious, and traders are advised to closely monitor important support and resistance levels for further directional cues.