Stock market today: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Friday — May 31

Stock market today: Despite strong buying in banking stocks, the Indian stock market ended lower for the fifth straight session on Thursday. The Nifty 50 index lost 216 points and closed at 22,488, while the BSE Sensex shed 617 points and ended at 73,885. However, the Bank Nifty index gained 181 points and closed at 48,682. The mid-cap index crashed 1.21 percent in the broad market, whereas the small-cap index nosedived 1.33 percent.

Trade setup for Friday

On the outlook for the Nifty 50 index, Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty 50 index has remained volatile during the session with predominant bearishness. The sentiment for the short term remains weak as the index slipped below the critical 21-day Exponential Moving Average (21EMA). Call writing activity was significant at 22,500. Therefore, Nifty needs to sustain above 22,500 to witness a meaningful recovery. However, failure to move above 22,500 might attract fresh selling in the market, potentially driving the index towards 22,300/22,100."

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 31

On the outlook for Bank Nifty today, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty index opened on a negative note but after that witnessed a strong recovery, finally settling the day on a positive note at 48,682. As we mentioned, the index defended the support at 48,000 levels and witnessed a recovery. Technically, the Bank Nifty has defended the support of the 21-DEMA at 48,403 and found resistance near 49,000-49,050 levels. If the index sustains above 49,050, then the rally could stretch towards 49,690 and 50,000 levels."

On the outlook for the Indian stock market today, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, "Nervousness ahead of the exit poll on 1st June and weak global cues continue to dent sentiments. Global markets remained under pressure due to rising bond yields and denting hopes of a rate cut. We expect market volatility to heighten as we approach the general election outcome."

Speaking on the rising India VIX Index, Sumeet Bagadia, Executive Director at Choice Broking, said, "The India VIX Index has breached the immediate hurdle placed at 23, and the volatility index is now facing the hurdle at 25. On breaching this resistance on a closing basis, we can expect more volatility in the Indian stock market as the index may touch the 28 mark in the near term."

Buy or sell stock ideas by experts

Regarding stocks to buy today, stock market experts Sumeet Bagadia of Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended five buy or sell stocks: Dixon Technologies, Ujjivan Small Finance Bank, PNB Housing Finance, BEL, and Escorts.

Sumeet Bagadia's stocks to buy today

1] Dixon Technologies: Buy at ₹9308, target ₹9900, stop loss ₹9000.

Dixon Technologies share price is currently trading at ₹9308, showcasing significant bullish momentum. The stock has recently achieved a decisive breakout above the ₹9000 level, which now acts as a solid support zone after being retested. This consolidation above the breakout level indicates robust investor confidence and buying interest at these levels. Additionally, DIXON is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMAs), reinforcing its overall strength and positive trend.

2] Ujjivan Small Finance Bank: Buy at ₹589.50, target ₹630, stop loss ₹568.

The current trading price of UJJIVAN is ₹589.5. The stock has recently formed a Rounding Breakout pattern on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price halves above the ₹590 level, it may reach short-term targets of ₹630. On the other hand, immediate support levels are located at ₹575 and ₹568. These levels can be considered as opportunities to buy on dips.

Ganesh Dongre's buy or sell stocks

3] PNB Housing Finance: Buy at ₹748, target ₹780, stop loss ₹720.

We have seen significant support in this stock at around ₹720. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹748 price level, which may continue its rally till its next resistance level of ₹780. So traders can buy and hold this stock with a stop loss of ₹720 for the target price of ₹780 in the near term.

4] BEL: Buy at ₹290, target ₹305, stop loss ₹282.

In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹305. So, holding the support level of ₹282, this stock can bounce toward ₹305 in the short term. Hence, the trader can use a stop loss of ₹282 for the target price of ₹305.

5] Escorts: Buy at ₹3856, target ₹4050, stop loss ₹3780.

We have seen major support in this stock at around ₹3780. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹3856 price level, which may continue its rally till its next resistance level of ₹4050. So traders can buy and hold this stock with a stop loss of ₹3780 for the target price of ₹4050 in the near term.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.