Stock market recommendations for the week starting May 18, 2026: Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, advises buying Bharti Airtel and Kirloskar Oil Engines. The analyst also provides his outlook on Nifty and Bank Nifty.
Nifty View
After trading within a tight range for several sessions, the benchmark index Nifty witnessed a decisive breakdown from its consolidation phase last week, indicating a continuation of underlying weakness. The index declined sharply, touching a low of 23,262 before experiencing a mild pullback from lower levels. Despite this recovery attempt, Nifty ended the week with a loss of over 2%, forming a bearish candle with a prominent lower shadow on the weekly chart, reflecting some buying interest at lower levels. The decline was largely led by heavyweight sectors such as Nifty IT and Bank Nifty.
As anticipated, the broader market also took a breather following its strong rally over the past few weeks. The pressure was more pronounced in the Nifty Smallcap 100 index, which had been a key outperformer. During the week, the index corrected by more than 4% and formed a sizeable bearish candle on the weekly chart, indicating profit-booking at elevated levels and a temporary pause in broader market momentum.
Focusing on Nifty, the index continues to trade below its key moving averages, suggesting that the short-term trend remains under pressure. However, momentum indicators offer a slightly contrasting view. The daily RSI has taken support near the 40 mark and rebounded from lower levels, currently oscillating within the 40–60 range. In line with the RSI range shift concept, this reflects a phase of consolidation rather than a strong directional trend, highlighting a lack of clear momentum and suggesting that the index may continue to move in a range-bound manner over the next few sessions.
From a momentum standpoint, the 40 level on the daily RSI remains a critical threshold. A decisive breakdown below this level could further weaken market sentiment and potentially trigger a fresh leg of bearish momentum in the near term.
In terms of key levels, the 23,300–23,250 zone is likely to act as immediate support. A sustained breach below 23,250 could accelerate selling pressure and drag the index towards 23,000, followed by 22,800 in the short term. On the upside, the 20-day EMA zone near 23,850–23,900 is expected to act as strong resistance, and only a decisive move above this range may signal a revival in bullish sentiment.
Bank Nifty View
Over recent weeks, the banking benchmark index Bank Nifty has continued to lag the broader frontline indices, indicating persistent relative weakness. In the past week, the index declined by nearly 3% and formed a strong bearish candle on the chart, reflecting sustained selling pressure across the segment.
Currently, the index remains well below its key moving averages, which are trending downward and reinforcing the negative short-term outlook. However, momentum indicators are displaying a neutral to sideways bias, suggesting the absence of a clear directional move in the immediate term.
Looking ahead, the 53,200–53,000 zone is likely to act as a critical support area. A decisive breach below 53,000 could accelerate downside momentum, pushing the index towards 52,400, followed by 51,800 in the short term. On the upside, the 54,400–54,500 zone is expected to act as strong resistance, and only a sustained move above this band could indicate the possibility of a meaningful pullback.
Stock Recommendations
Bharti Airtel
Bharti Airtel has given a downward sloping trendline breakout on the daily chart decisively, signaling a potential trend reversal. The breakout is backed by a notable surge in trading volumes, reflecting strong buying interest at higher levels. Adding to the bullish setup, the stock has also confirmed a double bottom neckline breakout, strengthening the possibility of sustained upside momentum. Momentum indicators remain supportive, with the RSI trending higher and indicating growing strength. Moreover, the DI+ crossing above DI- on the ADX indicator highlights that buyers have gained control, which could pave the way for further upward movement in the near term. Hence, we recommend accumulating the stock in the zone of 1,900–1,910 with a stop-loss of 1,845. On the upside, it is likely to test the level of 2,040 in the short term.
Kirloskar Oil Engines
Kirloskar Oil Engines continues to exhibit a strong bullish structure after delivering a breakout above the previous swing high of 1,530 recorded on March 6. Following the breakout on April 15, the stock witnessed a healthy throwback towards the breakout zone, which successfully acted as support and triggered a sharp rebound, highlighting strong buying interest at lower levels. Momentum indicators have also turned favourable, with the RSI recovering from the 45 zone and moving above 60 on the daily chart, indicating renewed bullish momentum. Additionally, the 50-day EMA has consistently acted as dynamic support since February 2026. Sustained follow-through buying from current levels could further strengthen the upward trajectory in the stock. Hence, we recommend accumulating the stock in the zone of 1,735–1,745 with a stop-loss of 1,685. On the upside, it is likely to test the level of 1,860 in the short term.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
