Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 16

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday amid mixed global cues.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,176 level, a premium of nearly 98 points from the Nifty futures’ previous close.

On Thursday, the Indian stock market ended sharply higher, with the benchmark Nifty 50 closing above the 25,000-mark.

The Sensex surged 1,200.18 points or 1.48%, to close at 82,530.74, while the Nifty 50 settled 395.20 points, or 1.60%, higher at 25,062.10.

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

Sensex Prediction

Sensex jumped 1,200 points to close above the 82,500 mark, which is largely positive.

“There is a bullish candle on the daily charts and an uptrend continuation formation on the intraday charts, indicating a further uptrend from the current levels. We believe that the market’s outlook remains positive, but buying on intraday corrections and selling on rallies would be the ideal strategy for day traders,” said Shrikant Chouhan, Head – Equity Research, Kotak Securities.

On the downside, 82,200 and 81,800 would act as key support zones for Sensex, while 82,800 – 83,000 could serve as key resistance levels for the bulls. However, below 81,800, the uptrend would become vulnerable, he added.

Nifty 50 Prediction

Nifty 50 witnessed an excellent upside breakout on May 15 and closed the day with hefty gains of 395 points.

“A long bull candle was formed on the daily chart that signals a sharp upside breakout in the market after a consolidation movement. Back-to-back long bull candle formations in the last four sessions, with minor weakness in between, indicate bulls are back in charge. The huge opening upside gap of 12th May remains open after four sessions of its formation and this gap could be considered as a bullish breakaway gap,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the overall trend of Nifty 50 continues to be positive and the next upside levels to be watched are around 25,250 and 25,500 in the near term. Immediate support is placed at 24,800.

Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Nifty 50 index confirmed a breakout from the NR3 (Narrow Range 3) pattern, suggesting the beginning of a directional expansion following a phase of consolidation.

“A robust bullish candle has been formed on the daily chart, highlighting the bullish outlook. The widening gap between the 9-day and 20-day exponential moving averages reflects accelerating momentum and trend strength. The next resistance is placed near 25,240, a zone last tested in October 2024. A sustained breakout above this level could potentially drive the index towards 25,650 in the short term,” said Mehra.

The Relative Strength Index (RSI) is currently at 66, indicating healthy momentum with further room to advance before approaching overbought territory. The support is placed at 24,800. A trend-following approach remains appropriate for the next session, he added.

Bajaj Broking Research highlighted that the Nifty 50 index formed a strong bull candle with a higher high signaling strength.

“Nifty 50 on expected lines witnessed buying demand from the upper band of the recent breakout area (24,400 – 24,600) and closed firmly above the 25,000 levels. We expect the index to maintain overall positive bias with immediate hurdle placed around 25,200 – 25,300 levels being the 78.6% retracement of the entire decline (26,277 – 21,744) and the measuring implication of the recent range breakout,” Bajaj Broking Research said in a note.

The brokerage firm added that a sustained breakout above the 25,300 levels will open further upside towards 25,750 in the coming weeks, while the recent breakout area of 24,500 – 24,400 is likely to act as key support going forward which also coincides with the recent breakout area and key retracement area.

VLA Ambala, Co-Founder of Stock Market Today said that the Nifty 50 can expect support around 25,020 and meet resistance between 25,200 and 25,280. Similarly, Bank Nifty can find support between 55,250 and 55,100 and expect resistance near 55,860 and 56,000 in the next session.”

Bank Nifty Prediction

Bank Nifty index rallied 554.30 points, or 1.01%, to close at 55,355.60 on Thursday, forming a bull candle with a higher high.

“The overall Bank Nifty structure is positive and dips should be used as a buying opportunity. We expect the index to head towards 56,400 levels in the short term, being the 123.6% external retracement of the recent breather (56,194 – 53,585). The daily stochastic remains in uptrend sustaining above its nine periods average highlighting strength and supports positive bias. Key support for the short-term point of view is placed at 54,500 – 54,000 being the confluence of the Monday’s gap area and 20-day EMA,” Bajaj Broking Research said.

Om Mehra said that the Bank Nifty index formed a bullish candle and attempted to sustain above the channel resistance near 55,500. The price has reclaimed the 20-day SMA, placed at 54,850, which could now act as immediate support.

“The RSI stands at 61, is comfortably above the median line and indicates improving momentum without being overbought. Additionally, the MACD continues to hover in negative territory but shows early signs of convergence, hinting at a potential crossover if follow-through strength emerges. As long as the index sustains above 54,850, the trend remains sloped to the upside. A decisive close above 55,600 could open the door for a move toward 56,098.70, the recent all-time high,” Mehra said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.