Energy Crisis Fears Hit Markets; Nifty Structure Turns Weak

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By S. JHA

Brokerage flags weakening technical indicators as rising oil prices, inflation fears, FII outflows and energy concerns pressure market sentiment.

Mumbai, May 18, 2026 — Deepening US and Iran tension is weighing down the Asian markets on Monday morning. With the Brent crude oil trading at $110, Indian market may open with cuts. Technically, Nifty, the 50-share index, is presenting a weak structure, said Angel One in a market note.

“Technically, despite the mid-week rebound, the overall chart structure has weakened, with prices slipping below the short-term moving averages of 20 DEMA and 50 DEMA,” said the Delhi-based brokerage in a market note shared with clients.

The Indian indices while opening firm on Friday in the early hours had erased all gains to dive into the red. The choppy trades on Friday hinted weaknesses in the market.

“Momentum indicator RSI Smoothened, which earlier failed to move beyond the 60 mark, has now slipped below 40, indicating prevailing bearish momentum in the market. During the week, Nifty managed to hold the crucial support of the 50% retracement of the entire April rally from 22182 to 24602, resulting in a longer lower wick formation on the weekly chart,” added Angel One.

The brokerage firm also warned that “going ahead, the zone between the 50% and 61.8% retracement levels of the said rally, placed within 23400 – 23100, is likely to act as an important support zone.”

“A decisive break below this band could trigger further downside towards the 22700 zone and lower levels thereafter. On the upside, resistance is expected in the 23900 – 24200 zone, which coincides with the 20 DEMA and 50 DEMA,” it added.

With India facing energy crisis, the situation seems gloomy. Prime Minister Narendra Modi has been urging the people for austerity.

In addition, state governments are taking measures such as work from home which are also likely to weigh down sentiments on the street. With the government raising fuel prices in staggered manner, India also faces risks of higher inflation in the coming weeks. The FII outflow and weak rupee further add to the negative sentiments on the street.

(Disclaimer: This article is only for informational purposes. Please consult SEBI-registered advisor for investment related decisions.)