Top / Sat, 18 May 2024 Mint

Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 18

The Indian stock market is open today as the BSE and the National Stock Exchange (NSE) will conduct a special live trading session. The Sensex gained 253.31 points, or 0.34%, to close at 73,917.03, while the Nifty 50 settled 62.25 points, or 0.28%, higher at 22,466.10. Here’s what to expect from Nifty 50 and Bank Nifty today:Nifty 50 PredictionThe Nifty 50 index continued the upside momentum with a range bound action on May 17 and closed the day higher by 62 points. Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, Dow Jones above 40,000 to oil pricesMeanwhile, V.L.A. Ambala, Co-founder, Stock Market Today (SMT) is of the view that Nifty’s technical indicators displayed mixed sentiments.

The Indian stock market is open today as the BSE and the National Stock Exchange (NSE) will conduct a special live trading session.

On Friday, the domestic equity benchmark indices ended higher, with the Nifty 50 closing above 22,450 level.

The Sensex gained 253.31 points, or 0.34%, to close at 73,917.03, while the Nifty 50 settled 62.25 points, or 0.28%, higher at 22,466.10.

Also Read: Indian stock market special live trading session today: Check out timings, purpose, other key details

Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadow.

“Technically, this pattern indicates a high wave type candle formation. The market has closed above the high of Thursday’s hanging man type candle pattern at 22,432 levels. This is a positive indication," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Nifty 50 on the weekly chart has bounced back sharply this week. After the formation of long bear candle in the last week, we observe a formation of long bull candle from the lows, which is signaling a bullish Piercing line type candle pattern. This is bullish formation and one may expect further upside in the short term, Shetti added.

He believes the short-term trend of Nifty is positive and the next upside levels to be watched are around 22,700 - 22,800 levels in the next few sessions.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

The Nifty 50 index continued the upside momentum with a range bound action on May 17 and closed the day higher by 62 points.

“The Nifty index continued its ongoing momentum but failed to surpass the 22,500 mark, where the highest open interest is built up on the call side. For the index to achieve its all-time high level in the near term, it needs to break this level decisively. The downside support is placed at 22,300, and dips towards this support level should be seen as an ideal opportunity to initiate long positions," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, Dow Jones above 40,000 to oil prices

Meanwhile, V.L.A. Ambala, Co-founder, Stock Market Today (SMT) is of the view that Nifty’s technical indicators displayed mixed sentiments.

“While the benchmark index has been trading above its 20-day SMA in the daily and weekly timeframe, it has formed a bearish candlestick pattern ‘Tweezer Top’ in the middle of the May series. Then again, Nifty formed a ‘Piercing Line’ candlestick pattern on the weekly timeframe with its RSI trading at 62, suggesting a somewhat neutral momentum," Ambala said.

Notably, the index has delivered around 3.5% gains in the last 6 months, and considering this trend, the key levels for the next rally could range between 22,650 and 22,350 levels. In fact, the next rally could take place within the next months and be within a range of 4-7%, she added.

Though the market is in overbought conditions, dips are being bought. In this situation, she believes adopting a neutral trading strategy and investing in quality stocks would be beneficial.