After a brutal session of sell-off on Tuesday that saw the key equity benchmark index BSE Sensex plummet nearly 2 per cent, all eyes are now on the Wednesday, May 13 opening. Investors are bracing for continued volatility as the market grapples with a spike in crude oil prices, uncertainty surrounding the West Asia conflict, unabated foreign fund outflows and the record-low rupee levels.
Amid a widespread sell-off, the 30-share Sensex tanked 1,456.04 points, or 1.92 per cent, to settle at 74,559.24. During the day, it dived 1,565.78 points, or 2 per cent, to 74,449.50.
In four trading days, the BSE gauge has tanked 3,399.28 points or 4.36 per cent, and the Nifty slumped 951.4 points or 3.91 per cent.
The index opened gap down by nearly 325 points and touched an intraday high of 75,741.96 within the initial minutes of trade. However, the market failed to sustain at higher levels, as continuous selling pressure emerged immediately after the opening and dominated the entire session. In the latter half, bearish momentum intensified further, pushing the Sensex to an intraday low of 74,449.50, before it finally settled near the day’s low at 74,559.24, indicating continued weakness and strong risk-off sentiment in the broader market, he further stated.
Sector-wise, heavy selling pressure was witnessed across almost all major sectors. Realty, IT, Focused IT, Services, Consumer Durables, Utilities, MidSmall Private Banks, Industrials, Capital Goods, Auto, Financial Services, and Private Banks emerged as the major laggards during the session. Meanwhile, Oil & Gas, Energy, and Metal showed relatively better resilience compared to the broader market, though they too ended in negative territory. Overall market breadth remained weak, indicating broad-based weakness across sectors, Tailor added.
Market experts believe the near-term outlook remains weak, with volatility likely to stay elevated unless benchmark indices reclaim key resistance levels.
Sensex Prediction for Wednesday, May 13 by Vipin Dixena
According to Vipin Dixena, SEBI-registered analyst, Sensex remains technically weak after breaking below key moving averages and is now testing the crucial 74,500 support zone.
“The structure continues to show lower highs and lower lows, reflecting strong selling pressure. RSI is in oversold territory, which may trigger a short-term bounce, but the overall bias stays bearish unless the index reclaims 75,000 quickly,” he said.
“Resistance remains strong near 75,000-75,500, while a breakdown below support can push the index towards 73,800 levels,” Vixena added.
Sensex Prediction for Wednesday, May 13 by Hitesh Tailor
From a technical standpoint, Tailor said the sharp decline has further weakened the near-term market structure, with the index slipping below key short-term support levels.
“Immediate support is now placed in the 73,800–74,000 zone, which is likely to act as a crucial demand area in the coming sessions. On the upside, resistance is seen around 75,000–75,200, where recovery attempts may continue to face selling pressure and profit booking,” he said.
Tailor further said, the near-term outlook remains bearish to cautious, as sustained selling pressure and weak sentiment continue to dominate market direction.
“Volatility is expected to remain elevated in the short term, and unless the index manages to reclaim resistance levels decisively, recovery attempts may remain limited and vulnerable to further profit booking,” the analyst concluded.
Sectoral market performance on Tuesday, May 12
In the broader market, the BSE MidCap Select index tanked 2.92 per cent, and the SmallCap Select index declined by 2.73 per cent.
Sectorally, realty dropped 4.22 per cent, Focused IT (3.61 per cent), services (3.51 per cent), IT (3.37 per cent), consumer durables (3.35 per cent) and industrials (3 per cent).
US President Donald Trump on Monday said the ceasefire with Iran was at its “weakest” and on “massive life support”, a day after he rejected Tehran’s proposal to end the months-long war as “totally unacceptable”.
“It is at its weakest… After reading that piece of garbage they sent us… It’s on life support, massive life support,” Trump told reporters at the Oval Office in response to a question on the ceasefire with Iran in the wake of the rejection of the peace proposal.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,437.56 crore on Monday, according to exchange data.
On Monday, the BSE benchmark tanked 1,312.91 points or 1.70 per cent to settle at 76,015.28. The Nifty dropped 360.30 points or 1.49 per cent to end at 23,815.85.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
