Stock Market Update: Nifty, Sensex Set for Flat Start as FIIs Sell Rs. 2,814 Cr, IT Stocks Shine

The Indian stock markets are expected to open on a cautious note amid mixed global cues and elevated oil prices. GIFT Nifty is at 23,648, up 30 points from its previous close. 

The Sensex rose 77.05 points or 0.10% to close at 75,315.04. The Nifty 50 gained 6.45 points or 0.03% to settle at 23,649.95.

Foreign institutional investors (FIIs) sold shares worth Rs. 2,814 crore on May 18. While domestic institutional investors (DIIs) bought shares worth Rs. 2,682 crore.

The Nifty Midcap 100 declined 0.15%, while the Nifty Smallcap 100 slipped 1.26%, reflecting continued risk aversion in broader equities.

Nifty IT led the rally with 2.43% gain on strong buying interest in technology stocks. Pharma and private banking stocks also supported the benchmark indices.

Sensex Outlook

The Sensex rebounded after the gap-down start and took support at 74,200. The index surged 1,200 points from the day's lowest point.

"For day traders, 75,000 would act as a trend-decider level. As long as the market is trading above this level, a pullback formation is likely to continue. On the higher side, the pullback move could continue till 75,500-75,800. On the flip side, below 75,000, it could retest the levels of 74,200-74,000," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a bullish candle on the daily chart with lower highs and lower lows, indicating consolidation amid high volatility.

"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," stated Bajaj Broking Research.

However, the brokerage noted that a sustained trend reversal would require to decisively move above the 23,800-23,900 breakdown zone. "Failure to do so will lead to extension of the last 4 sessions consolidation in the range of 23,200-23,900," it added.

Also Read: US Stock Market Today: S&P 500 and NASDAQ Rise as Chip Stocks Rebound After Bond Sell-off

Bank Nifty Outlook

On Monday, Bank Nifty fell 173.35 points or 0.32% to close at 53,537.00 and formed a bullish hammer-like candle on the daily chart.

Bajaj Broking said that holding above the support zone of 52,700-52,400 could trigger a pullback toward the 54,000 and 54,700 levels. A close above 54,400-54,700 is needed to confirm the downtrend is losing steam.