Early losses were reversed as buying interest emerged in sectors such as IT, metals, oil and gas, and telecom, while banking and financial stocks underperformed.
Broader market indices outperformed, with mid-cap and small-cap segments posting significant gains. Additionally, softer inflation data from both India and the US boosted investor sentiment.
Two stock recommendations by MarketSmith India for 15 May:
Buy: Sarda Energy & Minerals Ltd (current price: ₹ 335.75)
● Why it’s recommended: Strong financial performance, attractive shareholder returns
● Key metrics: P/E: 23.46, 52-week high: ₹ 563.45, volume: ₹ 32.54 crore
● Technical analysis: Holding its 200-DMA for the past three days
● Risk factors: Exposure to raw material price volatility, regulatory and environmental compliance:
● Buy at: ₹ 451.95
● Target price: ₹ 525 in three months
● Stop loss: ₹ 421
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● Why it’s recommended: Strategic capacity expansion and robust financial performance
● Key metrics: P/E: 59.97, 52-week high: ₹ 743, volume: ₹ 104.81 crore
● Technical analysis: Horizontal trendline breakout
● Risk factors: Dependence on key geographies
● Buy at: ₹ 692
● Target price: ₹ 845 in three months
● Stop loss: ₹ 625
How Nifty 50 performed on 14 May
The benchmark Nifty 50 opened with a mild gap-up after a one-day pause and remained volatile throughout the session. Despite the choppiness, it managed to close on a positive note, forming a small bullish candle on the daily chart.
Barring the financial sector, all major sectoral indices and broader market indices ended in the green. Market breadth remained strong, with the advance-decline ratio settling around 3:1, indicating broad-based participation.
From a technical standpoint, the index is trading well above all its key moving averages, signalling a firmly established uptrend.
Bullish momentum remains strong across both daily and weekly timeframes. The relative strength index (RSI) has turned upward and is currently hovering around 62, reinforcing the positive bias. Additionally, the moving average convergence divergence (MACD) continues to trade in positive territory with a bullish crossover, further confirming the strength and sustainability of the ongoing upward momentum.
According to O’Neil’s methodology of market direction, Nifty50 transitioned from a “Rally Attempt” to a “Confirmed Uptrend”.
On Thursday, Nifty 50 regained positive momentum after a brief pause on Wednesday, though it remains within a sideways range. Sentiment stays optimistic, with the uptrend expected to continue as long as the index sustains above 24,400.
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Immediate resistance is seen near 24,800, and a decisive breakout above this level could drive the index toward 25,100–25,200. However, failure to surpass 24,800 may result in continued consolidation within the current trading range.
How did Bank Nifty perform?
On 14 May, the trading session began on a positive note for Bank Nifty. However, it failed to sustain the bullish momentum and turned volatile as the day progressed. The index declined 0.25% on Thursday, forming a bearish candle on the daily chart with a lower-high and lower-low price structure. It had opened at 55,008, traded within a range of 55,208–54,491, and closed at 54,940.
The FinNifty index also witnessed volatility, ending 0.23% lower and marking a second consecutive bearish candle.
Bank Nifty continues to trade above all its key moving averages on the daily chart, reflecting its broader bullish structure. However, the RSI has turned downward and is currently hovering around 58, indicating a shift toward sideways momentum. At the same time, the MACD maintains a negative crossover while still trading above the central line, highlighting a mixed short-term bias.
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According to O’Neil’s methodology of market direction, Nifty Bank transitioned from an “Uptrend Under Pressure” to a “Confirmed Uptrend”.
The index continues to trade above all its key moving averages, indicating sustained bullish momentum. However, it is currently exhibiting signs of sideways consolidation. A decisive breakout above 56,000 could open the door for further gains toward 57,500–58,000. On the downside, strong support near 54,000 is likely to provide a cushion against any 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.
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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.
