Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 21

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note Wednesday, tracking mixed cues from global markets.

The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,800 level, a premium of nearly 25 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market extended losses for the third consecutive session and ended lower.

The Sensex plunged 872.98 points, or 1.06%, to close at 81,186.44, while the Nifty 50 settled 261.55 points, or 1.05%, lower at 24,683.90.

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

Sensex Prediction

Sensex declined by 870 points, forming a long bearish candle on daily charts, and on intraday charts it is holding correction continuation formation which is largely negative.

“We are of the view that, as long as Sensex is trading below 81,700 the correction wave is likely to continue. On the down side, Sensex could retest the level of 80,800 - 80,500. On the higher side, above 81,700 the sentiment could change. Above the same, chances of hitting 82,200 and 82,500 would turn bright,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Prediction

Nifty 50 ended 1.05% lower at 24,683.90 on May 20, forming a strong bearish candle on the daily chart, extending the bearish momentum that was observed in the previous two sessions.

“Nifty 50 faced resistance near the upper Bollinger Band in the daily chart and may now move toward the middle Bollinger Band, which is placed around 24,500. The daily RSI shows a downward skew and is currently positioned just below the 60 mark. On connecting the recent swing low and swing high, Nifty 50 is now hovering near the 38.2% Fibonacci retracement level at 24,665, with the immediate support at the 50% retracement level of 24,500. A breach below this level may weaken the ongoing trend further,” said Om Mehra, Technical Research Analyst, SAMCO Securities.

India VIX stands at 17.39, and a surge above 18 could indicate rising volatility, potentially leading to larger swings in the coming sessions. Until a strong base is formed, it may be premature to re-enter the uptrend. Hence, a cautious approach is warranted for now, he added.

According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, Nifty 50 formed a bearish candle entering its immediate support at 24,700 levels.

“The zone at 24,700 - 24,500 plays a crucial support for the index, a break of which can take the index down further towards 24,200 levels; however, the zone looks to be strong for now. A bounce from the present level can take the index towards the 25,200 and 25,700 levels. The momentum indicators are in an over-bought region; however, on a higher time frame, the momentum indicators are still suggesting a positive momentum,” said Dwarakanath.

According to him, any dip in the Nifty 50 index can be a buying opportunity. The ADX average line is well below the 20 levels on the daily chart while the ADX DI+ is above the ADX DI- line, indicating continuation of bullishness in the index. However, Nifty 50 staying above 24,500 levels is crucial at present.

VLA Ambala, Co-Founder of Stock Market Today expects Nifty 50 to gain support between 24,500 and 24,420 and face resistance near 24,750 and 24,810.

Bank Nifty Prediction

Bank Nifty index dropped 543.35 points, or 0.98%, to close at 54,877.35 on Tuesday, forming a bear candle with a lower high and lower low pattern, signaling profit booking at higher levels at the upper band of the falling channel.

“Bank Nifty index index confirmed the shooting star candlestick pattern by sustaining below 55,290 and registered a low of 54,829 level, as expected. As long as Bank Nifty remains below 55,290, further weakness is likely. On the downside, strong support is seen near 54,460, where the 21-DEMA is placed. Traders are advised to follow a sell-on-rise strategy in Bank Nifty as long as it stays below 55,290,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Bajaj Broking Research noted that Bank Nifty continues to consolidate in the broad range of 56,000 - 53,500 in the last 4 weeks.

“A key technical observation on the daily chart is that the index has been trading within a downward-sloping channel for the past 19 sessions. In the last 19 sessions it has retraced just 38.2% of the prior 9-session rally (49,157 – 56,098), indicating a shallow pullback that suggests underlying strength and potential higher bottom formation,” said Bajaj Broking Research.

The brokerage firm expects the index to extend the last 4 weeks’ consolidation in the range of 53,500 - 56,000.

“Within the consolidation we believe dips should be used as a buying opportunity. Key support at 53,000 - 53,500 being the confluence of key retracement and 50 days EMA,” said the brokerage house.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.