Stock Market Outlook: How Will Nifty 50, Sensex Trade On May 21?

Stock Market Today: The Indian benchmark stock market bourses Sensex, and Nifty 50 are expected to witness a positive opening on May 21, tracking Wall Street gains and renewed hopes pinned to the end of the Middle East conflict after the US President Donald Trump noted that negotiations between the US and Iran were in final stage.

The trends on Gift Nifty also indicated a strong start for the Indian benchmark indices. The Gift Nifty was trading nearly 23,804 level, a premium of approximately 136 points from the Nifty futures’ previous close.

On Wednesday, the Indian stock market ended marginally higher, with the benchmark Nifty 50 holding above 23,600 level.

The Sensex surged 0.16% to settle at 75,318.39 level, while the Nifty 50 ended 0.17% higher at 23,659.00 level.

Nifty 50 Outlook 

The Nifty 50 formed a bullish candle after a gap-down opening, reflecting healthy buying interest from the day’s low and indicating resilience near lower levels. However, the index continues to trade below all major moving averages — including the 10-, 20-, 50-, 100-, and 200-day EMAs — with each average maintaining a downward slope, highlighting that the broader trend remains under pressure.

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On a positive note, the histogram weakness eased further for the fifth consecutive session, indicating that bearish momentum is gradually losing intensity. Technically, immediate resistance is placed at 23,695, followed by 23,764 and 23,876, whereas key support levels are seen at 23,470, 23,401, and 23,289.

Sensex Outlook

Technically, the index continues to trade within a broader consolidation range for the sixth consecutive session, indicating indecisiveness and the absence of strong directional momentum. Immediate support is placed around the 74,400–74,500 zone, while key resistance is seen near 76,100–76,200. A decisive breakout beyond this broader range of 74,400–76,200 is likely to determine the next directional move.

On a sectoral basis, Capital Goods, Power, Energy, Oil & Gas, Hospitals, Auto, Industrials, Realty, Telecom, PSU Banks, and Metals displayed relative strength and outperformed the broader market, whereas FMCG, IT, Consumer Durables, and select Financial counters remained under pressure.

Stocks In Focus On May 21

Life Insurance Corporation of India, ITC, Nykaa, LG Electronics India, GAIL India

The shares of top sectoral giants such as Life Insurance Corporation of India, ITC, Nykaa, LG Electronics India, GAIL India will be in focus today as these companies are set to release their Q4 results today.

Aditya Birla Capital

The financial services company announced that its board has cleared a ₹4,000 crore preferential equity share issue to promoter Grasim Industries, Suryaja Investments Pte. — an Aditya Birla Group firm — and International Finance Corporation, aimed at supporting growth and bolstering its capital base.

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Dr Reddy's Lab

The pharmaceutical company announced the launch of its oral semaglutide biosimilar in India under the brand name Obeda for the treatment of type 2 diabetes mellitus.

Lenskart

Eyewear retailer Lenskart on Wednesday posted a 9% year-on-year (YoY) decline in consolidated net profit to ₹200 crore for the fourth quarter.