Buy or sell stocks: Benchmark indices Sensex and Nifty 50 ended their two-session gaining streak on Tuesday, May 26, as profit booking, weak global sentiment, and rising crude oil prices weighed on market sentiment.
The Sensex declined 479 points, or 0.63%, to finish at 76,009.70, while the NSE’s Nifty 50 fell 118 points, or 0.49%, to close at 23,913.70. However, mid- and small-cap indices outperformed the broader market, with the BSE 150 Midcap index gaining 0.33% and the BSE 250 Smallcap index advancing 0.21%.
Stock market today
Nifty 50
On Tuesday, the Nifty 50 opened with a marginal gap-down of 27.60 points at 24,004.10, reflecting a cautious start to the session after the previous rally. During the first half, the index witnessed buying interest and gradually moved higher, registering its intraday high of 24,089.80. However, the momentum failed to sustain at higher levels as selling pressure emerged thereafter. Weakness intensified during the second half, dragging the index steadily lower throughout the session. Nifty eventually registered its intraday low of 23,885.45 towards the closing hours and settled at 23,913.70, ending the day with a decline of 118.00 points or 0.49% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a bearish kicker candlestick pattern indicates profit booking emerging after the recent sharp upmove. The inability to sustain higher levels and closing near the intraday low reflects weakening short-term momentum and cautious sentiment in the near term.
“From a technical perspective, immediate support is placed in the 23,750–23,800 range, while resistance is observed between 24,050 and 24,100 levels. The Relative Strength Index (RSI) stands at 51.51, indicating that momentum still remains above neutral territory despite the corrective move. In the derivatives segment, notable call writing was seen at the 24,000 strike, followed by 24,100, while significant put writing was observed at 23,900 and 23,700 levels, indicating immediate resistance near higher levels while support continues around lower strikes,” Bagadia said.
Bank Nifty
The Bank Nifty index opened with a marginal gap-up of 18.15 points at 55,311.80, reflecting a relatively stable opening in the banking space. The index registered its intraday high of 55,536.80 within the initial few minutes of trade. However, profit booking emerged at higher levels and the index gradually slipped lower throughout the session. Selling pressure intensified during the second half, dragging Bank Nifty towards its intraday low of 54,979.75. The index eventually settled at 55,092.90, ending the session with a decline of 200.75 points or 0.36%.
Bagadia further noted that on the daily timeframe, the formation of a bearish candlestick pattern indicates weakness emerging after the recent sharp recovery. The inability to sustain above higher levels reflects cautious sentiment among participants in the banking segment.
“From a technical standpoint, immediate support is placed in the 54,500–54,600 range, while resistance is seen in the 55,500–55,700 zone. The Relative Strength Index (RSI) stands at 53.17, suggesting that momentum remains mildly positive though signs of short-term exhaustion are visible after the recent rally. Sustaining above immediate support levels will remain important to maintain the broader positive undertone in the banking space,” he said.
Bagadia further adivised traders to closely monitor immediate support and resistance zones, as sustained movement beyond these levels will be crucial in determining the next directional trend in the near term, as recent price action suggests a volatile trading session with profit booking emerging at higher levels after the recent strong upmove.
While both benchmark indices initially attempted to extend gains during the first half, sustained selling pressure during the latter half dragged the markets lower towards the close. Despite the corrective move, overall market breadth remained balanced and volatility eased further, indicating that the broader undertone of the market still remains relatively stable, he added.
Sumeet Bagadia’s stocks to buy
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Wednesday, 27 May: Adani Energy Solutions, Wockhardt, Vedanta, IFCI, and Tata Motors Passenger Vehicles.
1] Adani Energy Solutions: Buy at ₹1463, Target ₹1590, Stop Loss ₹1395
Adani Energy Solutions share price has successfully retested its previous range consolidation breakout level and has again started moving upwards with an increase in daily volume, indicating renewed buying interest and strengthening bullish momentum in the stock. The ability of the stock to sustain above the breakout zone highlights the validity of the breakout and reflects strong participation from market participants at lower levels. In addition to this, the stock also took support from its 20-DEMA level while bouncing back, indicating presence of strong short-term support and continuation of the prevailing uptrend. The ongoing technical setup suggests a positive trading opportunity, where traders may consider initiating long positions at CMP, with a potential upside target of ₹1590, while keeping a stop loss at ₹1395 for prudent risk management.
2] Wockhardt: Buy at ₹1700, Target ₹1850, Stop Loss ₹1620
Wockhardt share price has broken out from a range consolidation pattern on the daily timeframe, indicating emergence of fresh buying momentum and potential continuation of the ongoing upward move. The breakout reflects strength in price action and suggests increased participation from market participants at higher levels. In addition to this, the stock is trading above all its crucial DEMA levels, including the 20, 50, 100, and 200 DEMA, indicating strong trend alignment and sustained bullish undertone across multiple timeframes. Considering the current technical setup, traders may consider initiating long positions at CMP for a potential upside target of ₹1850, while maintaining a strict stop loss at ₹1620 as part of disciplined risk management.
3] Vedanta: Buy at ₹345, Target ₹375, Stop Loss ₹329
Vedanta share price has successfully retested its breakout from an upward sloping resistance trendline on the daily timeframe and bounced back after taking support near the breakout zone, indicating strength in the ongoing uptrend and confirming the validity of the breakout. The rebound from the support area reflects sustained buying interest at lower levels and continuation of bullish momentum in the stock. In addition to this, the stock also registered a fresh all-time high (ATH) in today’s session, indicating strong price strength and increasing bullish sentiment among market participants. The prevailing chart structure supports a bullish outlook, where traders may consider initiating long positions at CMP for a potential upside target of ₹375, while maintaining a stop loss at ₹329 to manage risk effectively.
4] IFCI: Buy at ₹64.40, Target ₹70, Stop Loss ₹61.40
IFCI share price has broken out from a short-term rounding bottom pattern and has managed to trade and sustain above the breakout zone, indicating strengthening bullish momentum and possibility of continuation in the ongoing upward move. The breakout suggests a shift in sentiment in favor of buyers and reflects improving price structure on the daily timeframe. In addition to this, the momentum indicator RSI is at 60.39, which is above its midpoint, indicating positive momentum and increasing strength in the current trend. Given the favorable technical setup, traders may consider taking long positions at CMP, with a potential upside target of ₹70, while keeping a strict stop loss at ₹61.40 to ensure disciplined risk management.
5] Tata Motors Passenger Vehicles: Buy at ₹386, Target ₹420, Stop Loss ₹369
TMPV share price has broken out from an upward sloping symmetrical triangle pattern on the daily timeframe, indicating strengthening bullish momentum and continuation of the prevailing uptrend. The breakout from this pattern reflects increasing buying interest and suggests the possibility of further upside movement in the near term. In addition to this, the stock showed strength in today’s session by taking support near its 100 DEMA level, indicating presence of strong demand at lower levels and reinforcing the importance of this support zone in the current trend structure. The current market structure indicates a constructive outlook for the stock, where traders may consider initiating long positions at CMP, targeting a potential upside move towards ₹420, while maintaining a stop loss at ₹369 for effective risk control.
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.
