Stock market today: Trade setup for Nifty 50 to India VIX, eight stocks to buy or sell on Tuesday — May 21

Stock market today: The domestic benchmark indices, Sensex and Nifty 50, are probably going to open higher on Tuesday's trading session, amidst mixed global cues.

The Indian benchmark indices is off to a solid start, based on Gift Nifty's trends. The Gift Nifty was trading at a premium of around 70 points from the previous closing of the Nifty futures, at 22,610.

 The benchmark Nifty 50 closed the special trading session on Saturday over the 22,500 mark, while the domestic market indices finished with modest gains.

The Nifty 50 closed 35.90 points, or 0.16%, higher at 22,502.00, while the Sensex increased 88.91 points, or 0.12%, to conclude at 74,005.94.

Due to the Lok Sabha elections in Mumbai on Monday, the Indian stock market was closed.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today - May 21

Trade setup for Tuesday

The Nifty 50 is still in the channel and closed over 22,500 for the first time in a few days, according to Rupak De, Senior Technical Analyst at LKP Securities. On the daily chart, a small-bodied candle, however, offers very little information about the direction the price will go in the future. Furthermore, there is noticeable inflection around the 22,500 strike, as seen by the thick writing in both the call and put. To confirm any directional shift, traders must thus exercise caution throughout the first hour of trading. At 22,400, support is evident. On the plus side, a strong advance might push the index in the near future towards 22,600 and beyond.

Also Read: Indian stock market: 7 key things that changed for market overnight - Gift Nifty, Nasdaq at record high to oil prices

Buy or sell stock ideas by experts

Anand Rathi's Ganesh Dongre, Prabhudas Lilladher's Shiju Koothupalakkal, and Choice Broking's Sumeet Bagadia have suggested a total of eight buy or sell stocks for today. These stocks are arranged and explained further under the names of the experts.

Ganesh Dongre's shares to buy today

Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi

1. Tata Motors: Buy at ₹954, target ₹985, stop loss ₹930

We have seen major support in this stock around ₹930. So, at the current juncture, the stock has again seen a reversal price action formation at the 954 price level, which may continue its rally till its next resistance level of ₹985. So traders can buy and hold this stock with a stop loss of ₹930 for the target price of ₹985 in the upcoming weeks.

2. Indian Energy Exchange: Buy at ₹159, target ₹172, stop loss ₹152

In the short-term trend, the stock has seen a bullish reversal pattern; technically, retrenchment could be possible till ₹172. So, holding the support level of ₹152, this stock can bounce toward the level of ₹172 in the short term, so the trader can go along with a stop loss of ₹151 for the target price of ₹172. 

3. Vedanta: Buy at ₹462, target ₹482, stop loss ₹450

We have seen strong support in this stock around ₹482. So, at the current juncture, the stock has again seen a reversal price action and bullish candlestick pattern formation at the 462 price level, which may continue its rally till its next resistance level of ₹482, so traders can buy and hold this stock with a stop loss of ₹450 for the target price of ₹482 in the upcoming weeks.

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Shiju Koothupalakkal's buy or sell stocks

4. West Coast Paper Mills: Buy at ₹651.40, target ₹680, stop loss ₹637

The stock, after witnessing the short correction, has taken support near the 612 zone and indicated a pullback to form a higher low pattern on the daily chart, breaching above the 50EMA level of 640 to improve the bias. We can expect further rises in the coming sessions. The RSI is well placed, signalling a buy, and with upside potential visible from the current rate, we suggest buying the stock for an initial target of 680, keeping the stop loss at 637.

5. Fertilisers and Chemicals Travancore: Buy at ₹696.30, target ₹730, stop loss ₹682

The stock has recently moved past the important 200 period MA and has also breached above the significant 50EMA level of 693 to improve the bias and is anticipated to further rise in the coming sessions. The RSI currently well placed, showing strength, and has signalled a buy with the potential to carry on with the positive move further ahead. We suggest buying the stock for an initial upside target of 730 while keeping the stop loss of 682.

6. Royal Orchid Hotels: Buy at ₹379.60, target ₹400, stop loss ₹381

The stock, after the decent correction, has bottomed out near the 360 zone and indicated a decent pullback to improve the bias, anticipating further rises in the coming sessions. The RSI is currently well placed and improved, with a trend reversal confirmed to signal a buy and much upside potential visible from the current rate. With the chart looking attractive, we suggest buying the stock for an initial target of 400 while keeping the stop loss of 381.

Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 21

Sumeet Bagadia, Executive Director at Choice Broking

7. Sterling and Wilson Renewable Energy: Buy at ₹820.65, target ₹865, stop loss ₹791

Sterling and Wilson Renewable Energy, which is presently trading at an all-time high of 823 levels, is displaying significant bullish momentum. Strong trading volumes have backed the recent breakout above the critical resistance at 755 levels, which is an important technical development that highlights the strength of the stock. The discovery raises the possibility that the upward trend would continue, providing investors with a positive outlook.

To further support its bullish outlook, Sterling and Wilson Renewable Energy is also trading above important moving averages, such as the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs. Relative Strength Index (RSI), a momentum indicator, is currently at 76.33 points.

It is advisable for traders to monitor the strong support level around 791 levels, as a breach of this level may indicate a change in market attitude. Sterling and Wilson Renewable Energy present technical configuration overall shows a favourable atmosphere for potential upside growth going forward, so long as traders and investors keep a careful eye on important support and resistance levels and are alert to any possible reversals.

We advise purchasing Sterling and Wilson Renewable Energy at the CMP of ₹820.65 and a stop loss of ₹791 in order to reach the target of ₹865, based on the analysis above.

8. Tide Water Oil: Buy at ₹1936.2, target ₹2,050, stop loss ₹1,866

Tide Water Oil Ltd is currently trading at ₹1,936.2. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹1,870 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹2,050 levels. On the downside, substantial support is evident near ₹1,866.

Furthermore, Tide Water Oil Ltd is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 74.23, signalling an upward trajectory and confirming an increase in buying momentum.

In summary, considering the technical analysis and prevailing market conditions, Tide Water Oil appears to present a promising buying opportunity for those targeting a ₹2,050 price objective, contingent upon the implementation of prudent risk management measures.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹1,866 to protect the investment in case of an unexpected market reversal.

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 taking any investment decisions.