BackStock market today: Trade setup for Nifty 50 to India VIX, five stocks to buy or sell on Wednesday — May 22
Stock market today: Prabhudas Lilladher's Shiju Koothupalakkal, and Choice Broking's Sumeet Bagadia have suggested a total of five buy or sell stocks for today.
PremiumStock market today: The Indian stock market's key indices, Sensex and Nifty 50, maintained a stance of cautious trading on Tuesday, May 21st, as the majority of stocks experienced declines.
The Sensex concluded the day with a marginal decrease of 53 points, or 0.07 percent, settling at 73,953.31, while the Nifty 50 saw a slight uptick of 27 points, or 0.12 percent, closing at 22,529.05.
According to data on the BSE website, the market capitalization of companies listed on the BSE, reached a new high of $5 trillion, surpassing the $5 trillion mark for the first time this year and increasing by over $633 billion from the starting of this year.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 22
“The $5 trillion market cap for BSE listed companies is a major milestone that reflects the sustained momentum of the Indian stock market. It is important to understand that this landmark has been achieved when the market is almost flat trading in a range. This means the contribution to the up move in market cap has come from the broader market. PSUs have contributed significantly to this achievement," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Trade setup for Wednesday
On the Nifty outlook, Rupak De, Senior Technical Analyst, LKP Securities, said, "The index remained within the range of 22,400 and 22,600. Strong put writing at 22,400 and 22,500 might provide support to the Nifty. On the higher end, a decisive move above 22,600 might induce a rally towards 22,800 in the near term. Till then the index might continue consolidating as long as it remains within the range of 22,400 to 22,600."
On the Bank Nifty outlook, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, "The Bank Nifty index failed to surpass the mark of 48,400, where the 20DMA is placed. A break above this level will lead to a fresh move on the upside. The lower-end support is placed at 48,000, where the highest open interest is built up on the put side. The index needs to break these levels decisively on either side to have trending moves in the near term."
Buy or sell stock ideas by experts
Prabhudas Lilladher's Shiju Koothupalakkal, and Choice Broking's Sumeet Bagadia have suggested a total of five buy or sell stocks for today. These stocks are arranged and explained further under the names of the experts.
Sumeet Bagadia's shares to buy
1] Vedanta Ltd: Buy at ₹491.7, target ₹515, stop loss ₹475
The daily chart analysis of Vedanta reveals a promising outlook for the upcoming week, signalling a sustained upward movement. Notably, the stock has formed a significant higher high and higher low pattern, and the recent upward swing has successfully breached the neckline, establishing a new week high for the stock. This breakout suggests the potential for a substantial follow-through upward movement in the stock price.
Adding to the positive momentum, there has been an increase in trading volume, indicating growing market interest. The Volume Weighted Average Price (VWAP) for short term is 482. And NATIONALUM stock is trading above this level this is a good sign for the stock and it could move higher. VWAP is rising upwards. Furthermore, NATIONALUM is currently trading above its crucial 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.
Based on the above analysis we recommend buying VEDL in cash at CMP of 491.7 for the target of 515 with a stop loss of 475.
2] Tech Mahindra Ltd: Buy at ₹1,323.90, target ₹1,415, stop loss ₹1,280
Tech Mahindra, a prominent player in the technology sector, has demonstrated resilience by bouncing back from the support level of 1280, which aligns closely with its 20-Day Exponential Moving Average (EMA). Currently trading at 1323.90 per share, the stock has recently broken above the 1320 level, signalling robust strength. This positive sentiment is further reinforced as TECHM trades above its 20, 50, and 200-day moving averages, a clear indication of bullish momentum.
The stock faces a minor resistance at 1345 levels. Sustaining above this resistance could trigger additional upward momentum, paving the way for further gains. The Relative Strength Index (RSI) is presently at 64.53 and trending upwards, highlighting increased buying activity and further supporting the bullish outlook.
Given these technical indicators, TECHM presents a compelling investment opportunity. The combination of a strong bounce from support, a significant breakout, and favourable RSI readings makes it an attractive prospect for investors looking to capitalize on its upward trajectory.
Investors should be cautious and keep a watch on the stock if it falls below 1280, as this could negate the positive outlook. A short-term target of 1415 is achievable.
Shiju Koothupalakkal's buy or sell stocks
3] Railtel Corporation of India Ltd: Buy at ₹433, target ₹455, stop loss ₹422
The stock has witnessed a decent pullback with currently indicating a breakout with a bullish candle formation above the previous peak zone of 414 levels to anticipate for further rise in the coming sessions. The RSI is on the rise with much upside potential visible from current rate and can carry on with the positive move further ahead. We suggest to buy the stock for an initial target of 455 keeping the stop loss of 422 level.
4] UCO Bank: Buy at ₹56.55, target ₹60, stop loss ₹55
The stock after a short span of consolidation has indicated a big bullish candle formation on the daily chart moving past the important 50EMA level of 53.75 zone to improve the bias and can expect for further rise. The RSI currently is well placed showing strength and has signalled a buy with potential to carry on with the positive move further ahead. We suggest to buy the stock for an initial upside target of 60 keeping the stop loss of 55.
5] Madras Fertilizers Ltd: Buy at ₹91.40, target ₹96, stop loss ₹89
The stock after indicating a higher low formation on the daily chart has picked up well to move past the 50EMA level at 90.20 zone to strengthen the trend and with a positive candle formation, we anticipate further upward movement in the coming sessions. The RSI currently is well placed and on the rise with much upside potential visible from current rate. With the chart looking attractive, we suggest to buy the stock for an initial target of 96 keeping the stop loss of 89.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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