The Indian stock market opened sharply lower on Monday, 18 May, with Nifty 50 declining 1.1% to 23,391.9 and Sensex dropping 1.16% to 74,374.04 in early trade. According to latest reports, selling pressure was broad-based with all 16 major sectoral indices trading in the red. The broader market also witnessed sharp weakness, with small- and mid-cap indices falling 1.5% and 1.2% respectively. The decline came after Brent crude climbed to nearly $112 per barrel, marking a two-week high, following a drone attack on a nuclear power facility in the United Arab Emirates that escalated Middle East tensions. U.S. President Donald Trump warned that 'the clock is ticking' for Iran, signalling stalled diplomatic efforts to resolve the ongoing conflict. As per Economic Times, Nifty has broken its consolidation phase and signalled near-term weakness, with the index now trading below key technical levels.
The Indian stock market is expected to begin the new trading week on a cautious to bearish note, with the Gift Nifty index trading around 23,525 zone, more than 175 points below Friday's Nifty spot close of 23,643. According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the key benchmark index would have near-term support around the 23,200 zone, which needs to be sustained to maintain the overall bias intact. On the upside, the 24,300 band shall be the tough resistance hurdle, which needs to be breached decisively to establish conviction and clarity. The lack of sustainability above 50 days EMA has kept the market in a prolonged consolidation phase over past four weeks, though the slower pace of retracement signifies healthy consolidation that has helped cool overbought conditions. As per Economic Times, Nifty has broken its consolidation phase and signalled near-term weakness, with the index now trading below key technical levels.
Regarding the Bank Nifty outlook, Parekh noted that the index is consolidating and would need a significant revival to move past the 50-EMA at 55,600 to improve the bias and establish conviction for a further upward move in the coming days. On the downside, a decisive breach below the 53,500 zone shall trigger fresh downside targets of 51,800 and the 50,000 levels in the coming days. As per Economic Times, Bank Nifty has broken below its 50-EMA at 55,600, signalling potential further weakness in the banking sector.
Despite the sharp market decline and Nifty's break below consolidation, Vaishali Parekh recommended three buy-or-sell stocks for today's trading session. Astrazeneca Pharma is recommended as a buy at ₹8,475 with a target of ₹8,650 and stop loss at ₹8,350. Suzlon Energy is suggested as a buy at ₹53.80 with a target of ₹57 and stop loss at ₹52. Prism Johnson is recommended as a buy at ₹128 with a target of ₹133 and stop loss at ₹125. These recommendations come as the market faces pressure from geopolitical tensions and global risk-off sentiment, with key support placed at 23,100 being 61.8% retracement of the previous move and price gap support from April 7, 2026. As per Economic Times, Nifty has broken its consolidation phase and signalled near-term weakness, making these stock picks particularly relevant for investors seeking opportunities in the current market environment.
