Sensex Prediction for Wednesday, May 20: The BSE Sensex is bracing for a highly volatile and indecisive trading session on Wednesday, May 20. This comes after the equity benchmark indices ended marginally lower on Tuesday, May 19, following a late-session sell-off that erased early gains, due to a fag-end sell-off in blue-chip stocks HDFC Bank and Reliance Industries, as concerns rose over the rupee hitting a new record low.
Elevated global crude prices tracking geopolitical uncertainties also impacted market sentiment, but robust buying in IT stocks restricted the fall in indices, traders said.
During the day, it surged 431.23 points, or 0.57 per cent, to 75,746.27 after US President Donald Trump said he had halted fresh strikes on Iran at the request of Qatar, Saudi Arabia and the UAE, asserting that serious discussions were underway with Tehran that could lead to an acceptable deal.
Sensex gainers and losers on Tuesday
Sensex Prediction for Wednesday, May 20 by experts
Market experts suggest that Wednesday’s session is likely be characterised by defensive positioning, range-bound consolidation, and acute stock-specific movements.
Sensex Prediction for Wednesday, May 20 by Aakash Shah
From a technical perspective, Shah said the Sensex has formed an Inverted Hammer candle on the daily chart, suggesting indecisiveness after the recent rebound move. “The index managed to hold above the important 75,000 psychological zone, which continues to act as immediate short-term support. However, failure to sustain higher levels indicates that traders remain cautious near resistance zones,” he said.
Noting that the momentum indicators are showing a mixed setup, Shah stated, “RSI has stabilized after recovering from lower levels, indicating easing selling pressure, while short-term price action suggests consolidation within a broader recovery structure. Analysts tracking market structure indicate that sustained trade above immediate resistance levels will be crucial for continuation of upward momentum.”
Immediate support for Sensex is now placed near 74,500-74,600, followed by stronger support around 74,200. Shah further stated a decisive breach below these levels could trigger fresh corrective weakness.”On the upside, immediate resistance is visible near 75,700 – 75,800, while a breakout above 76,000 may strengthen bullish momentum and open the path toward higher levels in the near term,” the analyst added.
Overall, the short-term market structure remains cautiously positive but volatile, Shah said, adding, “Sustained buying above resistance zones will be essential for continuation of the recovery trend, while dips toward support areas are likely to attract selective buying interest.”
Sensex Prediction for Wednesday, May 20 by Vipin Dixena
SEBI-registered analyst, Vipin Dixena said the market continues to remain in a weak consolidation phase.
“Sensex remains in a weak consolidation phase after facing rejection near the 75,800 resistance zone. The index continues to trade below the 50 EMA, indicating that the broader trend is still under pressure despite recent recovery attempts. RSI has started turning lower from mid-levels, suggesting fading momentum and cautious sentiment in the near term,” he said.
According to Dixena, immediate support is placed around 75000, while 75,800 remains the key breakout zone on the upside.
“Unless Sensex sustains above 75,800, the market may continue to witness range-bound volatility with a slight negative bias,” the analyst concluded.
Key technical levels to watch on Wednesday, May 20
- Immediate support: 75,000
- Stronger support: 74,500–74,600 and 74,200
- Immediate resistance: 75,700–75,800
- Major breakout zone: 76,000
Sectoral indices on Tuesday, May 19
The BSE SmallCap Select index jumped 1.39 per cent, and the MidCap Select index went up by 0.93 per cent.
Among sectoral indices, BSE Top 10 Banks declined 0.55 per cent, Private Banks index (0.54 per cent), Services (0.30 per cent), Metal 90.26 per cent) and Telecommunication (0.21 per cent).
Focused IT jumped 3.25 per cent, IT (3.22 per cent), Realty (1.35 per cent), Utilities (0.67 per cent) and Consumer Discretionary (0.60 per cent).
Meanwhile, the rupee slipped to a record low of 96.60 against the US dollar before settling at 96.52 (provisional) on Tuesday.
Brent crude, the global oil benchmark, traded 1.80 per cent lower at USD 110 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 2,813.69 crore on Monday, according to exchange data.
The majority of Adani Group stocks ended higher after the US Department of Justice permanently dropped all criminal charges against business tycoon Gautam Adani and his nephew Sagar, bringing a high-profile securities and wire fraud case in New York to a complete close after prosecutors concluded they could not sustain the allegations.
Trump had made the announcement on Truth Social on Monday late afternoon.
“I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow (Tuesday),” Trump said.
“We were getting ready to do a very major attack tomorrow. I’ve put it off for a little while, hopefully, maybe forever, but possibly for a little while, because we’ve had very big discussions with Iran and we’ll see what they amount to,” Trump told reporters at the White House.
In the previous session on Monday, the BSE benchmark increased by 77.05 points, or 0.10 per cent, to settle at 75,315.04. The Nifty edged higher by 6.45 points, or 0.03 per cent, to end at 23,649.95.
(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.)
