Stock Market Today: Relief Rally On The Cards – Will NSE Nifty50 & BSE Sensex Rebound After Tuesday’s Fall?

Stock Market Today Prediction: Indian benchmark indices witnessed a volatile start to the week, with a massive rally on Monday followed by sharp profit booking on Tuesday. Ahead of market opening on Wednesday, May 14, early indications point to a positive start, with, the Gift Nifty is trading at 24,730, up by 94.0 points, or +0.38% as of 8:35 AM.

On Tuesday, May 13, the Nifty50 closed at 24,578.35, down 346.35 points or 1.39%, while the BSE Sensex plunged 1,281.68 points or 1.55% to settle at 81,148.22.

This sharp correction came right after Monday’s euphoric rally on May 12 when the Sensex soared 2,975 points (3.74%) to an all-time high of 82,429.90 and Nifty gained 865.90 points (3.61%) to end at 24,873.90—marking the biggest single-day jump for both indices since February 1, 2021.

Global Relief Rally Boosts Sentiment, But Risks Linger
Market expert Ajay Bagga attributed the global rebound to positive cues from the US, stating, "US CPI came in lower than expected, as the tariff impact was not seen yet in the US economy due to inventory destocking. US stocks have wiped out their losses so far this year, as Tuesday’s lower-than-expected inflation figures added fuel to a rally sparked by President Donald Trump’s deal with China to cut tariffs."

He added that despite underlying risks, investors are riding the relief rally: "Trump’s tour of the Middle East and massive investment announcements by the Saudis in the US are masking underlying trouble in global automakers and elsewhere. The unravelling of tariffs by the US, including with China, has truly astounded the markets."

Bagga emphasised that a more stable outlook may now prevail: "The big message is that the adults in the Trump administration seem to be dominant once more and hence the end results should be more tempered and conducive for economic growth and risk-on sentiment."

Technical View: Nifty Support at 24,450; Resistance at 24,760
According to Sudeep Shah, Deputy VP and Head of Technical & Derivatives Research at SBI Securities, Tuesday’s correction was technical in nature following Monday’s euphoric rally.
"After recording its biggest single-day gain in four years on Monday, the benchmark index Nifty failed to hold on to higher levels on Tuesday and came under profit booking. The index eventually slipped below the 24,600 mark, ending the session with a loss of 1.39%," Shah said.

He added that on the daily chart, the Nifty has formed a bearish candle with a prominent upper shadow—signaling selling pressure at higher levels.
Support Levels: 24,470–24,450 (Immediate); 24,300 (Crucial next support)
Resistance Levels: 24,740–24,760 (Crucial hurdle on the upside)

Sensex Range: 80,500–81,700 in Focus
On the BSE front, Shah noted that the Sensex too saw profit booking after touching a high of 82,573 on Monday.

"The benchmark index, Sensex, also witnessed profit booking after marking the high of 82,573 and ended the session with a loss of 1.55%."

Support Levels: 80,600–80,500
Resistance Levels: 81,600–81,700
Volatility Eases; India VIX Hovers Near 20-Day EMA

The volatility index, India VIX, slipped over 1% on Tuesday. According to Shah, "Currently, it is oscillating near its 20-day EMA level. Going ahead, the zone of 19.70–20 will act as an immediate hurdle for the index, while 17.20–17 will act as crucial support."1

Sectoral Outlook: Defence, PSU Banks & Metals May Outperform
Despite the market-wide correction, several sectors are showing bullish trends. Shah noted, "Nifty India Defence gave a consolidation breakout on Tuesday. Currently, all the moving averages and momentum-based indicators are suggesting further bullish momentum."

Other sectors likely to outperform in the near term include:
Nifty PSU Bank
Financial Services
Metal
Automobile
Capital Markets

 

FII-DII Activity: Contrasting Moves in Cash and Futures
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) showed divergent trends in Tuesday’s session.

"In the cash segment, FIIs sold to the tune of Rs 476.86 crore, while DIIs bought shares worth Rs 4,273.8 crore," Shah noted.

In the derivatives segment, the FIIs’ long-short ratio for index futures stood at 37.54, with net selling of 36,653 index futures—a point of mild concern for short-term sentiment.

"For now, domestic retail investors have picked up this selling with a contra net positive position in the futures. DIIs also bought heavily, a result of both investment of excess cash holdings as well as a surge in flows into mutual funds post the relief rally," Bagga said.

Global Cues: US Market Rally on Truce and CPI Data
Wall Street continued its recovery, fueled by a temporary truce on tariffs between the US and China and softer inflation numbers.
"Wall Street rebounded after the U.S. and China reached a temporary truce on tariffs earlier this week. The development led to stocks surging, with the Dow gaining more than 1,000 points on Monday," said Shah.

On Tuesday, US indices gave a mixed closing:
S&P 500: +0.72% to 5,886.55 (Strongest finish in 2+ months)
Nasdaq Composite: +1.61% to 19,010.08
Dow Jones: -0.64%, losing 269.67 points due to an 18% drop in UnitedHealth shares
Shah stated, "Currently, the S&P 500 is above its short and long-term moving averages. Going ahead, the index is likely to continue its northward journey and test the level of 5,950, followed by 6,020. On the downside, the zone of 5,850–5,830 will act as immediate support."

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Commodities: Brent Crude Holds Gains; Gold in Balance
Oil: Brent crude logged its fourth straight positive session, trading near its 50-day EMA level. Shah said, "$64.70–64.50 will act as immediate support, while $66.80–67 will be the next hurdle."
Gold: Demand remains strong, but prices are witnessing some profit booking at all-time highs.

AI Optimism Lifts Chip Stocks Globally
Investor sentiment was also bolstered by developments in AI. Shah highlighted, "Investors will be keeping an eye on Asian chip stocks after shares of Nvidia jumped following CEO Jensen Huang’s remarks that the company will sell more than 18,000 of its latest artificial intelligence chips to Saudi firm Humain."

Stock Market Today Prediction: What to Expect?
With a positive start on Wednesday morning, market participants are eyeing whether Nifty can reclaim and sustain levels above 24,700 and if the Sensex can bounce back toward the 81,700 mark
.
While domestic buying remains strong and technical levels offer support, the caution stems from FII selling in futures and a high volatility zone. Market action is expected to remain stock-specific and sector-driven with indices possibly staying range-bound.

Investors are advised to keep a close watch on key technical zones and global triggers—particularly around US tax cut deals, oil prices, and AI-related developments—for further cues.