Stock market today: Trade setup for Nifty 50 to Sensex, eight stocks to buy or sell on Monday — May 27

Stock market today: After making fresh highs in early morning trade, the Indian stock market settled flat on Friday last week. The Nifty 50 index settled at 22,957 after climbing to a new peak of 23,026. The BSE Sensex went off 7 points and ended at 75,410, while the Bank Nifty index finished 203 points higher at 48,971. The mid-cap index closed 0.23 percent higher even as the advance-decline ratio fell to 0.66:1. This stability in the market indicates a secure and confident environment for traders and investors.

Trade setup for Monday

On the outlook for Nifty today, Ruchit Jain, Lead Research, 5paisa.com, a trusted expert in the field, said, "The overall trend continues to be positive as there are no signs of reversal yet. The higher end of the channel and the retracement levels indicate an initial hurdle in the range of 23,050 to 23,150 in the coming week, and once this is crossed, we could see a continuation of the rally towards the 23,400 to 23,500 zone. On the flip side, the immediate support for Nifty today is around 22,700, followed by 22,500."

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 27

On the outlook for the 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 an initial dip, the index witnessed buying interest, which helped it to settle the day on a positive note at 48,972 levels. Technically, Bank Nifty broke the short-term resistance of 48,260 levels and closed above it, indicating strength. If the index holds above 48,000 levels, we expect it to test levels of 49,500. Thus, a buy-on-dips approach should be adopted in Bank Nifty."

On the outlook for the Indian stock market today, Ruchit Jain of 5paisa.com said, "Traders are advised to continue to trade with a positive bias and look for buying opportunities on any declines. INDIA VIX remains high due to the event (elections results) ahead, but it should start cooling off if the actual event outcome does not deviate much from the expectations."

"Overall, we expect the market to witness a gradual up-move and see some volatility next week as both election and earning season are nearing the end," said Siddhartha Khemka, Head of Retail Research at Motilal Oswal.

Buy or sell stock ideas by experts

Regarding stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; and Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladherhave — recommended eight buy or sell stocks for today.

Sumeet Bagadia's stocks to buy today

1] Tata Steel: Buy at ₹175, target ₹185, stop loss ₹169.

The daily chart analysis of TATASTEEL 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, offering a promising opportunity for profit.

2] TARC: Buy at ₹184, target ₹195, stop loss ₹177.

TARC is currently trading at ₹184.1. After a period of small falls and sideways consolidation, the stock has lately broken the neckline levels of ₹178.5 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching ₹195 levels. On the downside, considerable support is evident at nearly ₹177.

Ganesh Dongre's shares to buy today

3] HDFC Bank: Buy at ₹1520, target ₹1570, stop loss ₹1480.

We have seen significant support in this stock at around ₹1480. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹1520 price level, which may continue its rally till its next resistance level of ₹1570. So traders can buy and hold this stock with a stop loss of ₹1480 for the target price of ₹1570 in the near term.

4] TCS or Tata Consultancy Services: Buy at ₹3850, target ₹3940, stop loss ₹3800.

In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹3940. So, holding the support level of ₹3800, this stock can bounce toward ₹3940 in the short term. Hence, the trader can use a stop loss of ₹3800 for the target price of ₹3940.

5] Federal Bank: Buy at ₹163, target ₹173, stop loss ₹158.

We have seen strong support in this stock, around ₹158. So, at the current juncture, the stock has again seen a reversal price action and bullish candlestick pattern formation at the ₹163 price level, which may continue its rally till its next resistance level of ₹173. Hence, traders can buy and hold this stock with a stop loss of ₹158 for the target price of ₹173 in the near term.

Shiju Koothupalakkal's buy or sell stocks

6] M&M Finance: Buy at ₹271.40, target ₹285, stop loss ₹266.

The stock, after the consolidation, has indicated a bullish candle formation on the daily chart to improve the bias. With the RSI gradually on the rise, indicating strength, it has indicated a trend reversal with much upside potential to carry on with the positive move further ahead. We suggest buying the stock for an initial upside target of ₹285, keeping the stop loss of ₹266.

7] BASF: Buy at ₹4430, target ₹4580, stop loss ₹4345.

The stock has indicated a series of higher low formations on the daily chart, taking support near the ₹4280 level. A pullback has improved the bias, anticipating a further rise. With the chart looking good, we suggest buying the stock for an initial upside target of ₹4580, keeping the stop loss of ₹4345.

8] Kabra Extrusion: Buy at ₹394.60, target ₹410, stop loss ₹386.

The stock, after the consolidation, taking support near the ₹367 zone, has indicated a bullish candle formation on the daily chart to improve the bias, and with the RSI indicating a trend reversal after the consolidation witnessed, has much upside potential to carry on with the positive move further ahead. We suggest buying the stock for an initial upside target of ₹410, keeping the stop loss of ₹386.

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.