Sensex, Nifty today: Key levels and sectors to watch. Here's how to trade

India Today

19-05-2025

The stock market is expected to open lower on Monday with the Sensex and Nifty likely to begin the week on a quiet note. This comes as investors look for fresh triggers after a strong rally last week.Both benchmark indices ended in red on Friday. Traders chose to book profits after days of gains. The Nifty50 had jumped 4.2% last week, while foreign portfolio investors bought shares worth Rs 15,925 crore, marking their fifth straight week of buying.TECHNICAL LEVELS TO WATCHMarket experts say there is still positive momentum in the market, but traders should be cautious and focus on key levels.Aditya Gaggar, Director of Progressive Shares, said, 'The weekly line chart of the Index displays a rounding bottom breakout, signaling strong bullish momentum. The key levels to watch for the Index are resistance at 25,200 and support at 24,930. In BankNifty, a Bullish Flag and Pole formation is forming, with immediate resistance at 55,580 and support at 54,900, awaiting breakout confirmation.'He added that many sectors are showing strong signals on the charts. These include auto, energy, metal, pharma, real estate, and railways.SECTORS TO KEEP AN EYE ONGaggar shared a detailed sector-wise breakdown of how different parts of the market are looking based on chart patterns:Auto: Stocks like Bajaj Auto and Exide Industries are showing bullish signals such as inverted head and shoulder breakouts and falling channel patterns.Energy: After over three months of moving sideways, this sector is now showing strong upward movement. Stocks like CG Power, JSW Energy, and SJVN have seen bullish breakouts.Metal: This sector is showing a reversal of the earlier downward trend. Jindal Steel and SAIL have both seen symmetrical triangle breakouts.Pharma: The sector is expected to see a strong rally after a breakout from an inverted head and shoulder pattern.Realty: A range breakout has been seen in this sector, with stocks like AnantRaj and DLF showing symmetrical triangle breakouts.Railways: Stocks like HBL Engineering, IRFC, Jupiter Wagon, Railtel, RVNL, Texmaco Rail, and Titagarh were top gainers last week. Many of these stocks showed bullish breakouts and could be good for a 'buy on dips' strategy.Defence: This sector may see some profit-booking after a sharp rally. Investors are advised to be careful while trading these stocks.Gaggar concluded, 'Summing up all the above analysis, we conclude that the 'buy on dips' strategy would be ideal.'MARKET OUTLOOK AND RISKSDr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, 'An apparently perplexing trend from the last trading day is that the market declined despite Rs 14,018 crore of institutional buying (FIIs plus DIIs). This indicates that FIIs are increasing their short positions in the derivatives market. So expect more volatility ahead.'He also warned about the recent rally in defence stocks.'An important trend in the market is the sharp rally in defence stocks. Even though this segment has bright medium to long-term prospects, their valuations have become excessive and, therefore, investors have to be extremely cautious. Some profit booking in this segment would be appropriate,' Vijayakumar added.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)Tune InMust Watch