The benchmark equity indices opened higher on Friday, May 15, with BSE Sensex rising 451.46 points or 0.60% to 75,850.18 and NSE Nifty 50 advancing 143.25 points or 0.60% to 23,832.85 in early trade. However, according to The Economic Times, Nifty gave up gains made in the previous two weeks to end 2.2% lower but showed support at 23,260 level. Nifty ended the week below its 50-day moving average of 23,800, a key short-term average that could now act as an immediate hurdle amid selling at higher levels. Rupak De, Senior Technical Analyst at LKP Securities, warns that Nifty is showing signs of bear control after this weekly slide, with a set of lower tops suggesting weakness in the market. The market remains volatile within a broad trading range of 24,500 to 23,200, indicating a lack of strength and direction for the past month.
Leading gains on the Sensex were Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Kotak Mahindra Bank, HDFC Bank, Power Grid Corporation of India, Bharti Airtel, Titan Company, Bajaj Finance, and Maruti Suzuki India. However, as reported by The Economic Times, Nifty IT index tumbled another 6% after a 2.2% weekly slide, with the overall sentiment in the sector remaining bearish. Any short-term rise is likely to attract selling pressure, and although IT stocks witnessed some buying interest on Friday, a complete trend reversal cannot be confirmed based on a single day's recovery. The broader chart structure continues to remain weak, suggesting that further correction in the sector is still possible.
According to The Economic Times, support is placed at 23,500 for Nifty, with a decisive move below this level potentially triggering a significant fall toward 23,150 and may be lower. On the higher end, 23,800 continues to act as crucial resistance for the short term, as long as it remains below this resistance, the bears might have upper hand on the market. The technical analysis suggests that 23,200-23,100 will act as a crucial support zone, while any sustainable close above the 24,000 level may trigger upside momentum toward 23,300-23,500. Any range breakout on either side may indicate the further direction for the benchmark index. NAGRAJ SHETTI, Senior Technical Research Analyst at HDFC Securities, notes that Nifty formed a long bear candle with a long lower shadow on the weekly chart, signalling the emergence of buying interest around the 23,200 level during a weak trend.
NILESH JAIN, VP & Head of Technical and Derivative Research at Centrum Finverse, recommends deploying a Bear Put Spread in the upcoming weekly expiry. Buy 1 lot of 23,600 Put at 133 Sell 1 lot of 23,400 Put at 70, resulting in a net debit of 63 points with stop loss at 20 points. The maximum loss will be capped at ₹2,795, while the maximum profit potential is ₹8,905 with breakeven at 23,463. CHANDAN TAPARIA, Head of Derivatives & Technicals at Motilal Oswal Fin Services, suggests a Bear Put Spread for monthly expiry on May 26, 2026, buying one lot of 23,700 strike Puts and selling one lot of 23,400 Puts. Maximum risk is ₹115 points or ₹7,475 per lot, while maximum potential profit is ₹185 points or ₹12,025 per lot if the index expires below the 23,400 zone. Rupak De of LKP Securities has identified selective buying opportunities including Marico at ₹841 with target ₹880 and support at ₹824, Arvind at ₹451 with target ₹495 and support at ₹429, and Triveni Turbine at ₹607 with target ₹642 and support at ₹590.
Shares of oil marketing companies declined over 2% after petrol and diesel prices were increased by ₹3 per litre each - the first hike in more than four years. According to The New Indian Express, this price increase amid rising losses due to elevated crude oil prices weighed on the sector. Brent crude, the global benchmark, climbed more than 1% to trade above $107 per barrel, adding to the sector's challenges. The sector continues to face pressure from elevated crude oil prices and the recent fuel price hikes.
