On May 21, the market witnessed a mix of cautious trading and landmark achievements, providing a nuanced picture of the current financial landscape.
The Sensex, closed with a slight decrease of 53 points, or 0.07%, landing at 73,953.31. On the other hand, the Nifty 50 experienced a modest increase of 27 points, or 0.12%, ending the day at 22,529.05.
Despite these mixed results, the market capitalization of companies listed on the BSE reached a historic high of $5 trillion. This milestone marks a significant achievement, reflecting an increase of over $633 billion since the beginning of the year. The contribution from PSUs has been notably significant in reaching this landmark.
Rupak De, Senior Technical Analyst at LKP Securities, shared his perspective on the Nifty 50. He observed that the index remained within a tight range of 22,400 to 22,600. According to De, strong put writing at these levels is likely to provide support, and a decisive move above 22,600 could potentially lead to a rally towards 22,800. Until such a breakout occurs, the Nifty 50 might continue to consolidate within this range.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, provided his analysis on the Bank Nifty. Shah noted that the Bank Nifty struggled to surpass the 48,400 mark, where the 20-day moving average is placed. A breakthrough above this level could trigger a fresh upward move.
Conversely, support at 48,000, where the highest open interest is built up on the put side, is crucial. The index needs to break these levels decisively on either side to see trending moves in the near term.
Sumeet Bagadia recommends buying Vedanta Ltd at ₹491.7 with a target of ₹515 and a stop loss at ₹475. The stock has shown a higher high and higher low pattern, with increased trading volume indicating strong upward momentum. Vedanta is trading above its 20, 50, and 200-day EMAs, suggesting a bullish trend.
Tech Mahindra Ltd is another pick by Bagadia, who suggests buying at ₹1,323.90 with a target of ₹1,415 and a stop loss at ₹1,280. The stock has bounced back from the support level of 1280 and recently broke above 1320, signaling robust strength. Tech Mahindra is trading above its key moving averages, and the RSI indicates increased buying activity.
Shiju Koothupalakkal advises buying Railtel Corporation of India Ltd at ₹433 with a target of ₹455 and a stop loss at ₹422. The stock has shown a bullish breakout above 414, with a positive RSI trend suggesting potential for further rise.
UCO Bank is another recommendation from Koothupalakkal, who suggests buying at ₹56.55 with a target of ₹60 and a stop loss at ₹55. The stock displayed a bullish candle formation past the 50EMA level of 53.75, with a strong RSI indicating strength and potential for further gains.
Madras Fertilizers Ltd is also on Koothupalakkal’s list, with a recommendation to buy at ₹91.40 with a target of ₹96 and a stop loss at ₹89. The stock has shown a higher low formation and moved past the 50EMA level at 90.20, with a positive RSI trend indicating potential for further upward movement.
Today’s stock market analysis highlights a blend of cautious optimism and significant milestones. While the Sensex and Nifty 50 exhibited mixed performances, the achievement of a $5 trillion market capitalization for BSE-listed companies underscores the robust health of the broader market.
The expert stock picks offer strategic insights into potential investment opportunities, focusing on the importance of technical indicators and market momentum. As always, investors are advised to consider these recommendations carefully and consult with certified experts before making any investment decisions.
