Indian Stock Market Preview for May 14
Indian equity markets are likely to open on a firmer note today, May 14, with the support of global sentiments and Gift Nifty cues that were trading at around 24,720 — some 80 points higher than the last Nifty futures close. Following the steep fall on Tuesday, investors are now looking closely at important support levels for indications of possible rebound.> Market Recap – May 13:
The last trading session witnessed steep falls in the backdrop of across-the-board profit booking:
- Sensex fell by 1,281.68 points (down 1.55%) to close at 81,148.22
- Nifty 50 fell 346.35 points (down 1.39%) to close at 24,578.35
> Nifty 50 Technical View:
In spite of recent weakness, technical experts opine that the short-term upmove remains intact:
- Key Support Levels: 24,500 – 24,400 (key zone); deeper support available around 24,250 – 24,200 (Bollinger Band midpoint)
- Resistance Levels: Near-term barrier at 24,800, then 24,850 and a psychological barrier at 25,000
- Upside Target: Rally to 25,200 – 25,300 is on the cards in the near term, based on Fibonacci retracement from the 26,277–21,744 correction
The Nifty has established a bearish harami pattern, an old indication of a short-term halt in bullish sentiment. Yet, the RSI pulling back to 65 from 67 is a sign of a healthy pullback and not trend exhaustion.
> Sensex Technical Setup:
- Support Levels: 81,000 and 80,800 are being considered as crucial thresholds
- Resistance Targets: A reversal back towards 81,800 – 82,000 is possible if support is maintained
A dip below 80,800 may initiate new selling pressure, which may lead to forced liquidation of long positions. Nonetheless, as long as these supporting levels hold, the overarching trend remains unchanged.
> Bank Nifty Market Outlook:
Indication of profit taking, instead of a trend shift, was shown as Bank Nifty dropped by 442 points closing at 54,940.85 while remaining in range from the day prior.
- Critical Support Zone: 54,500 – 54,000 (concurring with the 20-day EMA and prior gap area)
- Short-term Target: Upside potential to 56,400, calculated from a 123.6% extension of the 56,194–53,585 move
The ongoing pullback is being viewed as mean reversion during an uptrend. The index remains above significant moving averages, and such things as stochastic have issued a buy signal, further supporting bullish bias on dips.
> Analysts' Views:
"We anticipate a bounce back from the 24,500–24,400
support area for Nifty. Short-term resistance is at 24,800–25,000, and a
breakout may push it to 25,300."
— Nagaraj Shetti, HDFC Securities
"The overall picture for both Nifty and Bank Nifty is
positive. The current fall seems to be a short-term correction and the entry
point for medium-term players."
— Om Mehra, SAMCO Securities
> Final Thoughts:
May 13 pullback was due to profit-taking near the higher levels, but otherwise, the underlying is still in a constructive bias. With Nifty and Bank Nifty holding close to large support levels, today's session can see the possibility of bouncing back, marking confirmation of an uptrend revival.
Investors must remain keen to watch crucial technical levels and view any potential further fall as an opportunity — keeping themselves equipped to handle extended intraday volatilities.
Disclaimer: This article is a technical analysis and broker
research. Investors should seek advice from licensed financial advisors prior
to making investment choices.
