The broader market indices staged a sharp reversal on Thursday, with the Sensex soaring nearly 1,400 points intraday and the Nifty reclaiming 25,000 for the first time in seven months as heavy buying in metal, auto, IT and realty stocks lifted investor sentiment.
Indian stock market on 15 May
The trends are now showing that there is a revival with the reclaiming of 25,000 yet again. The Sensex closed 1,200.18 points or 1.48% up at a seven-month high of 82,530.74 after rallying 1,387.58 points or 1.7% to hit the day’s high of 82,718.14 in the second half of the session. The Nifty surged 395.20 points or 1.6% to close at a seven-month high of 25,062.10. The index had previously closed above 25,000 on 17 October 2024.With geopolitical news simmering down to more acceptable levels, the market is seen reviving at this juncture.
Outlook for trading
The trends were under pressure, as can be seen from the charts below. However, as we had mentioned, there were important supports around 24,500. As the rebound from that level was quite strong yesterday, this level now assumes more significance for the coming sessions.
The charts indicate the consolidation that lasted nearly 2.5 trading sessions did not give up and the prices slid into cloud support, taking help from positive tailwinds to produce a sharp upside. As the rounding pattern formation seen on the intraday charts is holding, we can now look at the coming session with a positive frame of mind.
Also read: Bharti Airtel eyes growth through price hikes for high-end users
A mix of positive global cues and Q4 results is helping the market gain firmer footing. The trends are very much in line, we can expect the momentum to continue. Option data also hints at some call liquidation and a shift in the bias to the upside as the 25,000 zone has now turned into a support. With the PCR at 1, we still need to see a continuation to enable the bullish bias to sustain. At the moment we are once again back to the situation that we saw on Monday, prompting us to move ahead with caution, but with a more bullish bias.
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Two stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Timken Company (current price ₹2,961.30)
- Buy: At CMP and on dips to ₹2,900, stop ₹2,870, target ₹3,090-3,150
- Why it’s recommended:The stock saw a sharp decline over the past few months and finally bottomed out in mid-April. The last few attempts could not generate enough momentum until May, when the stock moved above key resistance zones around ₹2,800, which augured well.
- Key metrics:
- P/E: 54.72
- 52-week high: ₹4,817
- Volume: 91.57k
- Technical analysis: Support at ₹2,500, resistance at ₹3,164
- Risk factors: Rising debt levels, economic downturn and fluctuation in raw materials
- Buy: At CMP and on dips to ₹2,900
- Target price: ₹3,090-3,150 in one month
- Stop loss: ₹2,870
Also read: For Shree Cement, earnings a bigger priority than volumes
Avalon Technologies Ltd(current price ₹866.75)
- Buy: Above ₹870 and on dips to ₹840, stop ₹818, target ₹950-975
- Why it’s recommended: Avalon operates in the electronics manufacturing services (EMS) space and is expected to benefit from the ongoing tariff war. There is also some genuine buying at higher levels.The company is seen to be well placed, with manufacturing units across the globe.
- Key metrics:
- P/E: 89.51
- 52-week high: ₹1,074
- Volume: 389.1k
- Technical analysis: Support at ₹777, resistance at ₹932
- Risk factors: Intense competition in API space, slow debt reduction
- Buy: Above ₹870 and on dips to ₹840
- Target price: ₹950-975 in one month
- Stop loss: ₹818
Also read: Tata Motors’ windscreen is hazy amid the fog of tariffs
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
