Buy or sell stocks: The Indian benchmark indices, the Sensex and Nifty 50, closed marginally higher on Wednesday, May 13, ending their four-session losing streak.
The Sensex gained 50 points, or 0.07%, to settle at 74,608.98, while the Nifty 50 advanced 33 points, or 0.14%, to close at 23,412.60.
Stock market today
Nifty 50
On Wednesday, the Nifty 50 opened on a flat note at 23,362.45 and initially witnessed weakness, registering its intraday low of 23,262.55 within the first few minutes of trade. Buying interest then emerged from lower levels, helping the index recover steadily and touch an intraday high of 23,582.95 during the session. However, profit booking in the latter half trimmed gains, and the index eventually settled at 23,412.60, registering a marginal gain of 33.05 points or 0.14% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a Doji-like candlestick pattern indicates indecisiveness in the market and reflects a balance between buyers and sellers after the recent sharp decline.
“From a technical perspective, immediate support is placed in the 23,200–23,250 range, while resistance is observed between 23,550 and 23,600 levels. The Relative Strength Index (RSI) stands at 40.52, indicating weak momentum despite some stabilization after recent selling pressure. The volatility index, India VIX, increased by 0.75% to close at 19.42, suggesting that uncertainty and cautious sentiment continue to persist in the market. In the derivatives segment, notable call writing was seen at the 23,500 strike, followed by 23,600, while significant put writing was observed at 23,400 and 23,300 levels, indicating a defined trading range with a cautious undertone,” Bagadia said.
Bank Nifty
The Bank Nifty index opened on a flat-to-positive note at 53,600.40 and initially slipped lower to register its intraday low of 53,194.25 during the early phase of trade. Buying interest emerged at lower levels, pushing the index sharply higher towards an intraday high of 54,103.90. However, profit booking in the latter half erased most of the intraday gains, and the index eventually settled at 53,456.15, declining by 99.05 points or 0.18% for the day.
Bagadia noted that on the daily timeframe, the formation of a Doji-like candlestick pattern indicates indecision and lack of clear directional momentum in the banking space.
“From a technical standpoint, immediate support is placed in the 53,000–53,100 range, while resistance is seen in the 54,100–54,200 zone. The Relative Strength Index (RSI) stands at 38.99, indicating weak momentum and a continued cautious bias. Sustaining above support levels will be important to avoid further downside pressure,” he added.
He further advised traders to closely monitor key support and resistance levels for confirmation of the next directional move, as recent price action suggests a volatile yet range-bound session, with both benchmark indices recovering from early weakness but failing to sustain gains at higher levels due to profit booking in the latter half.
The formation of Doji-like candlestick patterns reflects indecision among market participants after recent sharp declines. While selective buying interest emerged in broader markets, elevated volatility levels and weak momentum indicators continue to suggest a cautious undertone, he said.
Sumeet Bagadia’s stocks to buy
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Thursday, 14 May: MedPlus Health Services, Tata Steel, Nippon Life India Asset Management, Carborundum Universal, and Divi’s Laboratories.
1] MedPlus Health Services: Buy at ₹889.60, Target ₹965, Stop Loss ₹850
MedPlus Health Services share price has given a fresh breakout above a downward sloping resistance trendline, indicating a potential trend reversal and emergence of fresh bullish momentum in the stock. Additionally, the stock is taking support near its short-term 20-DEMA level, indicating sustained buying interest at lower levels and strength in the ongoing uptrend. In addition to this, the momentum indicator RSI is trading at 57.64, indicating improving momentum and positive price strength.
The setup continues to favor a positive trading outlook, where traders may consider buying the stock at CMP, with a stop loss placed near 850 to manage downside risk, while the upside target is projected around 965.
2] Tata Steel: Buy at ₹219.62, Target ₹237, Stop Loss ₹209
Tata Steel share price has given a fresh breakout from a short-term consolidation zone, indicating continuation of the prevailing uptrend and emergence of fresh buying momentum. The breakout is accompanied by an increase in daily volume, indicating strong market participation and validating the strength of the breakout move.
Additionally, the momentum indicator RSI is trading at 64.39, indicating strong positive momentum and improving bullish strength in the stock. The ongoing setup reflects positive momentum in the stock, where traders may consider initiating fresh buying positions at CMP, with a stop loss placed at 209 and a potential upside target of 237.
3] Nippon Life India Asset Management: Buy at ₹1059.60, Target ₹1140, Stop Loss ₹1015
Nippon Life India Asset Management share price has formed a bullish harami candlestick pattern on the daily timeframe, indicating a potential reversal in momentum and emergence of fresh buying interest at lower levels.
In addition to this, the stock is taking support near its 20-DEMA level and is also trading above all its other crucial daily exponential moving averages, including the 50, 100, and 200 DEMA levels, indicating strong trend alignment and sustained bullish undertone. The stock continues to exhibit a constructive setup, where traders may consider buying at CMP, with a stop loss placed at 1015 to manage risk, while the upside target is seen around 1140.
4] Carborundum Universal: Buy at ₹1033.30, Target ₹1110, Stop Loss ₹985
Carborundum Universal share price is trading in an uptrend, forming a pattern of higher highs and higher lows from the downside, indicating sustained buying interest and a strong bullish price structure.
The stock is currently trading above all its crucial daily exponential moving averages, including the 20, 50, 100, and 200 DEMA levels, indicating strong trend alignment and positive momentum across multiple timeframes. The current technical structure remains supportive for a bullish stance, where traders may consider buying the stock at CMP, with a stop loss maintained at 985 and an upside target placed around 1110.
5] Divi’s Laboratories: Buy at ₹6796, Target ₹7350, Stop Loss ₹6500
Divi’s Laboratories share price has witnessed a breakout above its previous swing high and is currently moving upwards while forming a higher high–higher low structure, indicating sustained buying interest and continuation of the bullish trend. Additionally, the stock has recently witnessed a golden crossover on the daily timeframe, indicating strengthening momentum and a positive shift in the overall trend supported by bullish moving average alignment.
The prevailing chart structure indicates a favorable risk-reward setup, where traders may consider buying the stock at CMP, with a stop loss placed at 6500 and a potential upside target of 7350.
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.
