Stock Market Outlook Today, August 18: Sensex, Nifty Likely To Remain Range-Bound; Crude Oil, Rupee in Focus

Sensex & Nifty are likely to remain cautious on Tuesday, August 18, after extending their decline for the fifth consecutive session. The Nifty 50 ended below the 24,300 mark on Monday, while the Sensex also closed lower as investors continued to track elevated crude oil prices, geopolitical uncertainty and weakness in the rupee.

Stock Market Outlook Today, 18 August 2026: Sensex, Nifty Prediction for Tuesday

At Monday’s close, the Nifty 50 fell 0.32% to settle at 24,287.65, while the Sensex declined 0.36% to 77,728.16. With the frontline indices still showing a corrective trend, technical levels around 24,200 and 24,360 are likely to remain important for the Nifty during Tuesday’s trading session.

Market sentiment is expected to remain closely linked to developments in global markets, crude oil prices and geopolitical tensions. Investors have now shifted their attention from the recently concluded Q1FY27 earnings season towards global macroeconomic developments and external risks.

“Indian equities are likely to remain range-bound as the market shifts focus from the concluded Q1FY27 earnings season to global macro and geopolitical developments. The Strait of Hormuz and the trajectory of crude oil prices will remain the key near-term drivers, as conflicting US-Iran positions have clouded prospects of a near-term resolution, raising risks of elevated crude prices,” said By Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Higher crude prices remain a concern for India because the country relies significantly on imported oil. Any sustained increase in energy prices could influence inflation, the trade deficit and corporate costs, while geopolitical uncertainty could keep investors cautious.

Nifty Prediction Today for August 18: Check Technical Outlook

According to Bajaj Broking Research, the Nifty formed a small bearish candle on Monday with a small lower shadow, maintaining a pattern of lower highs and lower lows. The index has continued to show a corrective bias over the past seven sessions.

The brokerage said the Nifty needs to break this sequence and start forming higher highs and higher lows on the daily chart before a sustained upward move can be confirmed.

“Going ahead a move above Monday’s high of 24,360 will signal pullback towards last week high of 24,620 in the coming sessions. Overall, the index is expected to extend the recent consolidation and trade in the broad range of 24,200-24,700,” said Bajaj Broking Research.

The Nifty has been consolidating within a relatively narrow range over the past 10 sessions after retracing only around 38.2% of its earlier seven-session rise from 23,606 to 24,774. According to the brokerage, the shallow retracement indicates the formation of a higher base.

For Tuesday’s trading session, the 24,200 level is expected to remain an important immediate support for the Nifty. Bajaj Broking Research noted that this level coincides with the 100-day and 50-day exponential moving averages.

Below 24,200, the next important support zone is placed at 24,000-23,800. This area is supported by a trendline connecting the lows of the past four months and the 61.8% retracement level of the previous move from 23,606 to 24,774.

On the upside, 24,360 will be the first level to watch. A sustained move above this level could strengthen the possibility of a recovery towards 24,620, which was last week’s high. A broader breakout above the recent range could provide a stronger signal of renewed upward momentum.

Bank Nifty Prediction Today

Bank Nifty also remained within its broader consolidation phase. The index formed a high-wave candle as buying interest emerged near the rising trendline connecting the lows of the past four months and the 50-day EMA.

The broader eight-week consolidation range for Bank Nifty remains between 56,500 and 58,700. Traders are likely to watch 58,000 closely because a decisive move above this level could open the way towards 58,500-58,700.

“Within the consolidation index is facing resistance around 58,000 levels, a move above the same will open upside towards 58,500-58,700 levels while failure to move above 58,000 will lead to consolidation in the broad range of 57,000-58,000,” said Bajaj Broking Research.

The index has also retraced around 50% of its previous seven-session rise from 56,023 to 58,248 over the past 10 sessions. The brokerage believes this relatively shallow correction points towards a higher base formation.

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