The stock markets on Monday witnessed extreme volatility, with the benchmark BSE Sensex plunging over 1,134 points in early trade before staging a stellar recovery to finish nearly flat, supported by value buying in IT and select blue-chip counters. However, continued concerns over elevated crude oil prices, weakening rupee, weak rupee against the US dollar and global geopolitical uncertainty capped the gains.
Market experts believe volatility is likely to continue on Tuesday, May 19, as investors closely monitor crude oil prices, rupee movement and global geopolitical developments.
Sensex close on Monday, May 18
A total of 3,034 stocks declined while 1,264 advanced and 194 remained unchanged on the BSE.
Sensex losers and gainers on Monday
Sector-wise, Information Technology, Focused IT, Healthcare, and Telecommunication showed relative strength during the session. On the other hand, Auto, Capital Goods, Metal, Oil & Gas, Consumer Durables, Power, Commodities, and Realty remained under pressure, while Banking and Financial sectors traded on a mixed note with limited directional momentum, he said.
Technical experts maintain that the underlying market structure remains volatile and cautious. They further stated the technical indicators suggest that while buying interest persists at lower levels, overhead supply pressure will continue to cap major gains on Tuesday.
Sensex Prediction Today by Hitesh Tailor
From a technical perspective, Tailor said the Sensex managed to recover sharply from lower levels after testing the crucial support zone near 74,000–74,250, indicating that buying interest still persists at lower levels.
However, the index continues to face resistance around 75,700–76,000, where supply pressure is visible on every rise, the analyst added.
“The overall market structure remains volatile and range-bound in the near term, and a decisive move on either side of the mentioned range could set the next directional trend for the market,” Tailor concluded.
Sensex Prediction Today by Vipin Dixena
Echoing a similar technical stance, SEBI-registered analyst Vipin Dixena emphasised that the index is currently undergoing a consolidation phase.
“Sensex is attempting a short-term recovery after defending the 74,300-74-100 support zone, with price now stabilizing above the 50 EMA. The index remains trapped between 74,100 support and 75,800 resistance, indicating a consolidation phase after recent volatility. RSI has moved higher from oversold levels, reflecting improving momentum and easing selling pressure,” Dixena stated.
A sustained move above 75,800 can trigger upside towards 76,300–76,500, while failure to hold above EMA 50 may bring renewed selling pressure, he further stated.
“Near-term bias has improved, but a decisive breakout is still needed for trend confirmation,” said Dixena.
Sectoral performance on Monday
The BSE MidCap Select index climbed 0.17 per cent, while the SmallCap Select index dropped 1.62 per cent.
Among the sectoral indices, BSE Focused IT jumped 2.53 per cent, IT (1.95 per cent), Healthcare (0.22 per cent) and Telecommunication (0.05 per cent).
PSU Bank declined 1.81 per cent, Auto dropped 1.74 per cent, Consumer Discretionary (1.26 per cent), Metal (1.13 per cent), Consumer Durables (1.05 per cent) and Oil & Gas (1.01 per cent).
Meanwhile, the Indian rupee weakened further and touched a fresh record low of Rs 96.34 against the US dollar on Monday as pressure on the domestic currency continued.
Global crude oil prices remained elevated as Brent crude, the global oil benchmark, traded 0.73 per cent higher at USD 110.1 per barrel, showing no signs of easing amid ongoing geopolitical tensions.
The rupee weakened further and closed at a record low of 96.35 (provisional) against the US dollar on Monday.
In the commodity market, gold prices continued to rise on Monday and were trading at Rs 1,58,971 per 10 grams for 24 karat gold at the time of filing this report. Silver prices also remained firm, gaining 0.22 per cent to Rs 2,72,721 per kilogram.
In the previous session on Friday, the Sensex dropped 160.73 points, or 0.21 per cent, to settle at 75,237.99. The Nifty settled lower by 46.10 points, or 0.19 per cent, at 23,643.50, snapping its two-day gaining streak.
(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.)
