IGI Logo

Market Closing Commentary

Benchmark indices witnessed heightened volatility on 18 May, as the Nifty touched an intraday low of 23,317.10 during early trade. However, a strong recovery of more than 300 points from lower levels helped the index regain momentum and eventually close above the crucial 23,600 mark despite rising crude oil prices, weakness in the Indian Rupee, and ongoing geopolitical uncertainties.

At the close, the Sensex advanced 77.05 points or 0.10% to settle at 75,315.04, while the Nifty gained 6.45 points or 0.03% to end at 23,649.95. Among the sectoral indices, Nifty IT emerged as the top outperformer, rallying 2.43% amid strong buying interest in technology stocks. Pharma and Private Banking stocks also provided mild positive support to the benchmark indices.

On the other hand, broader selling pressure persisted across several sectors, with Nifty Media, Auto, PSU Banks, and Consumer Durables ending as the major laggards of the session. The broader market remained under pressure, as the Nifty Midcap 100 declined marginally by 0.15%, while the Nifty Smallcap 100 slipped 1.26%.

Nifty Outlook  

Index in the daily chart formed a bullish candle with a lower high and a lower low and shadows in either direction. Nifty witnessed a strong pullback after a gap down opening as index continues to consolidate amid stock specific action. Going ahead, index holding above Monday’s low (23,317) will keep the pullback intact and retesting of the breakdown area of 23,800-23,900 is likely in the coming sessions.

However, Index need to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 23,800-23,900 to signal a pause in the recent downtrend. Failure to do so will lead to extension of the last 4 sessions consolidation in the range of 23,200-23,900. Nifty has key support at 23,200-23,000 levels being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601).

Bank Nifty Outlook

Index formed a bullish candle with a lower high and lower low and shadows in either direction signaling consolidation with high volatility as the index tested the lower band of the gap area of 8th April and witnessed a rebound during the intraday session. Index holding above the key support area of 52,700-52,400 will lead to a pullback towards the recent breakdown area of 54,000 and 54,700 levels in the coming sessions.

However, Index need to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400-54,700 to signal a pause in the recent downtrend. Failure to do so will lead to consolidation in the range of 52,700-54,000. Key support is placed at 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456). 

Above views are of the author and not of the website kindly read disclaimer