Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 18

The Indian stock market indices, Sensex and Nifty 50, are likely to open on a weak note Monday following mixed global market cues.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around the 22,060 level, a discount of nearly 70 points from the Nifty futures’ previous close.

On Friday, the domestic equity indices continued with further weakness and closed over half a percent lower each amid profit booking.

The Sensex slipped 0.62% to close at 72,643.43, while the Nifty 50 ended 123.30 points, or 0.56%, lower at 22,023.35.

Nifty 50 formed a small negative candle on the daily chart that placed it at the edge of moving below the immediate support of 21,900 levels.

“The downside breakout of daily 10/20 period EMA (Exponential Moving Average) and ascending trend line is still intact and the market is finding resistance at the previous breakout area around 22,150 - 22,200 levels, as per change in polarity,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

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On the weekly chart, Nifty 50 formed a long bear candle, which indicates the formation of a bearish engulfing type candle pattern. 

“Nifty as per the weekly chart placed at the edge of moving below the strong support of 20-week EMA around 21,915 levels. This is not a good sign. The short-term and near-term trends of Nifty 50 remain weak. A decisive move below 21,900 could open sharp weakness down to the next lower support of 21,500 levels in the near term,” Shetti added.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

The Nifty 50 index declined 123 points to close at 22,023 on March 15, weighed down by a bout of profit-taking.

“The Nifty has once again closed below the rising trendline, bringing market sentiment back into a state of weakness. The momentum indicator suggests bearish momentum in the near term. Immediate support is situated at the 50-DMA, currently at 21,900, which is expected to provide support for the Nifty,” said Rupak De, Senior Technical Analyst, LKP Securities.

He believes a decisive drop below 21,900 could lead to a sharp decline in the index. On the upside, resistance is observed in the range of 22,200-22,250.

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Bank Nifty Prediction

The Bank Nifty index declined for the sixth consecutive session on Friday, falling 196 points to end at 46,594.

“The Bank Nifty index witnessed a volatile trading session, forming a doji candle that signals indecision in the market. Immediate resistance for the Bank Nifty index lies at 47,000, coinciding with the 20-day moving average (20-DMA). A decisive break above this level could propel the index higher towards the 47,500 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

On the flip side, the lower-end support is positioned at 46,500 - 46,300, where bulls are currently attempting to defend. However, a breach below this level may intensify selling pressure in the market, Shah added.

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