Buy or sell stocks: Indian benchmark indices ended lower on Friday, 15 May, snapping a two-session gaining streak as investors booked profits amid negative global signals, rising crude oil prices and continued weakness in the rupee.
The BSE Sensex declined 161 points, or 0.21%, to close at 75,237.99, while the NSE Nifty 50 slipped 46 points, or 0.19%, to settle at 23,643.50.
Selling pressure was visible across several sectoral indices. On the BSE, Metal, Oil and Gas, PSU Bank, Realty, Energy and Commodities indices dropped over 1% each. However, the IT index bucked the trend and gained more than 1%.
Market sentiment remained under pressure as the Indian rupee touched a fresh record low against the US dollar. The domestic currency briefly slipped past the 96-mark during intraday trade before ending 30 paise weaker at 95.94 per dollar.
The sharp rise in crude oil prices also weighed on investor confidence. Brent crude climbed more than 3 percent and traded above USD 108 per barrel, raising concerns over inflationary pressures and India’s import bill.
Global cues remained subdued after US President Donald Trump concluded his two-day visit to Beijing without any significant progress on trade discussions or stronger backing from China regarding the ongoing West Asia conflict.
Nifty Outlook
Sumeet Bagadia, Executive Director at Choice Broking stated that on the daily timeframe, the formation of a bearish candlestick pattern indicates profit booking at higher levels and cautious sentiment among market participants.
From a technical perspective, Bagadia said that the immediate support is placed in the 23,450–23,500 range, while resistance is observed between 23,850 and 23,900 levels.
“The Relative Strength Index (RSI) stands at 45.13, indicating weak momentum and lack of strong bullish conviction. The volatility index, India VIX, increased by 0.95% to close at 18.79, suggesting a slight rise in market uncertainty. In the derivatives segment, notable call writing was seen at the 23,700 strike, followed by 23,800, while significant put writing was observed at 23,500 and 23,400 levels, indicating near-term support zones within a defined trading range,” noted the expert.
Bank Nifty Outlook
According to the Choice expert, on the daily timeframe, the formation of a bearish candlestick pattern with the intraday high near the opening level reflects selling pressure right from the start of the session.
“From a technical standpoint, immediate support is placed in the 53,000–53,100 range, while resistance is seen in the 54,400–54,500 zone. The Relative Strength Index (RSI) stands at 41.60, indicating weakening momentum and a cautious undertone in the banking index. Sustaining above key support levels will be important to avoid further downside pressure,” Bagadia predicted.
He further added that the recent price action suggests a weak trading session with both benchmark indices witnessing selling pressure from higher levels after a positive opening. Rising volatility and bearish candlestick formations indicate cautious sentiment among market participants. Traders are advised to remain selective and monitor key support zones closely, as sustained weakness below these levels could trigger further downside pressure in the near term, suggested the market expert.
Sumeet Bagadia’s stock recommendations today
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks: Dabur, Pidilite Industries, and Sun Pharma.
Dabur
Buy DABUR in Cash @467 SL @ 444 TGT @ 505
Dabur India is showing early indications of a trend reversal after witnessing sustained selling pressure over the past few months. The stock has managed to hold above the crucial 450 support zone and is now attempting to build momentum near the 470 level. Recent candlestick formation and recovery from lower levels suggest that buying interest is gradually strengthening.
From a technical perspective, the stock has crossed above its short-term moving averages, while the 20-day & 50-day EMA is also providing support to the ongoing recovery. The RSI is holding above the 50 mark, indicating improving strength and positive price momentum. Additionally, rising volumes during the recent up-move signal accumulation at lower levels.
If Dabur sustains above the 475 and 487 resistance band, which coincides with its 100-day EMA and 200-day EMA levels, it could signal a stronger trend reversal and attract fresh buying momentum. A decisive breakout and sustained trading above these crucial long-term moving averages may strengthen bullish sentiment and pave the way for a potential rally towards the 505 target zone in the coming sessions. However, the 444 level remains a critical support area, and any weakness below this level could weaken the bullish setup in the near term.
Pidilite Industries
Buy PIDILITIND in Cash @ 1467 SL @ 1405 TGT @ 1595
Pidilite Industries is showing signs of a strong technical recovery after rebounding sharply from lower levels near the 1260 zone. The stock is currently trading around 1467 and has managed to regain momentum with sustained buying interest visible on the daily chart. Recent price action indicates the formation of a bullish structure, supported by higher lows and gradual improvement in trend strength.
Technically, the stock has crossed above its important short and medium-term moving averages, which reflects improving sentiment and positive momentum in the near term. The recovery has also been supported by rising volumes, indicating accumulation at lower levels. Momentum indicators such as RSI are moving higher and remain in bullish territory, suggesting that the current uptrend may continue in the coming sessions.
If Pidilite sustains above the major key EMA breakout zone, the stock could witness further upside momentum towards the 1595 target level. On the downside, the 1405 level remains a crucial support and 50-day EMA levels should be maintained as the stop-loss level for the trade setup.
Sun Pharma
Buy SUNPHARMA in Cash @1878 SL @ 1801 TGT @ 2000
Sun Pharma is showing renewed bullish strength after successfully giving a breakout above its descending trendline resistance on the daily chart. The breakout indicates a potential end to the recent consolidation phase and suggests that fresh buying momentum is emerging at higher levels. The stock is currently trading around 1878 and continues to hold firmly above its key moving averages, reflecting a positive trend structure.
The breakout has been supported by improving volumes, which adds credibility to the bullish setup and signals strong market participation. Momentum indicators such as RSI are also trending upward, indicating strengthening price momentum and improving sentiment in the stock. Technically, Sun Pharma is now inching closer towards the crucial 1960 zone, which stands as its all-time high resistance level.
A sustained move above 1960, backed by volume expansion, could trigger a fresh breakout rally towards the psychological 2000 mark in the near term. On the downside, 1801 remains a crucial support and hold near 20-day EMA level’s and stop-loss level for the trade setup.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
