The capital goods, media, PSU bank and pharma indices posted gains of 1-1.6%, while the IT, metal, FMCG, oil and gas, and realty indices fell 0.9-2.5%.
Two stock recommendations for today by MarketSmith India
Buy: Bharat Electronics Ltd (current price: ₹335.75)
- Why it’s recommended: Strategic importance in defence and aerospace, high barriers to entry
- Key metrics: P/E: 47.65, 52-week high: ₹340.50, volume: ₹1,937.63 crore
- Technical analysis: Double-bottom formation breakout
- Risk factors: High client concentration, supply chain disruptions, regulatory and policy risks
- Buy at: ₹335.75
- Target price: ₹398 in three months
- Stop loss: ₹305
Also read: Britannia’s cost-cutting efforts may not matter without a volume growth rebound
Buy: PNB Housing Finance Ltd (current price: ₹1,092)
- Why it’s recommended: Robust home loan demand across segments, strategic focus on affordable housing
- Key metrics: P/E: 14.38, 52-week high: ₹ 543.55, volume: ₹ 254.16 crore
- Technical analysis: Cup-with-handle breakout
- Risk factors: Economic and geopolitical uncertainties, intensifying competition
- Buy at: ₹1,092
- Target price: ₹1,320 in three months
- Stop loss: ₹995
How Nifty 50 performed on 13 May
Nifty 50 paused after Monday’s sharp rally, which was fueled by the ceasefire agreement between India and Pakistan. On Tuesday the index came under pressure as traders chose to book profits at higher levels. It opened on a muted note at 24,864 and gradually declined throughout the session, closing near the day’s low at 24,578. This resulted in the formation of a bearish candlestick on the daily chart.
Sectorally, most indices ended in the red except media, PSU bank, pharma and healthcare, which posted modest gains. Despite the decline, overall market breadth remained strong, with an advance-decline ratio of 2:1, indicating broad-based buying interest across the wider market.
From a technical perspective, Nifty 50 is trading firmly above all its key moving averages, indicating a well-established uptrend. The index is showing strong bullish momentum on both daily and weekly timeframes, supported by robust volume activity.
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The relative strength index (RSI) has turned upward and is currently positioned around 60, reinforcing the bullish bias. Additionally, the moving average convergence divergence (MACD) remains in positive territory with a bullish crossover, further validating the strength of the ongoing upward momentum.
According to O’Neil’s methodology of market direction, Nifty 50 transitioned from a “rally attempt” to a “confirmed uptrend”. Overall market sentiment remains positive, and the prevailing uptrend is expected to continue as long as the index remains above 24,400. The next immediate resistance is anticipated in the range of 25,100–25,200.
How did Nifty Bank perform?
Nifty Bank opened on a negative note but attempted to recover, only to face profit booking at higher levels. The index opened at 55,233.50, traded within the range of 55,499.65–54,888.50, and closed at 54,940.85. Despite forming a bearish candle on Tuesday, the index has maintained its bullish momentum as there are no signs of weakness thus far. It continues to trade well above its key moving averages.
The RSI has modestly tilted to the downside and is currently positioned near 59. Meanwhile, MACD remains in a negative crossover, though it continues to trade above the neutral line.
According to O’Neil’s methodology of market direction, Nifty Bank transitioned from an “uptrend under pressure” to a “confirmed uptrend”.
Also read: Asian Paints sees a greener FY26; analysts see red
Currently, the index is trading above all its key moving averages, indicating a sustained positive momentum. A critical resistance point to watch is 56,000. A decisive breakout and sustained trading above this could pave the way for further upward movement toward 57,500–58,000. On the downside, robust support is seen around 54,000, which is expected to provide a cushion in the event of a near-term pullback.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
