Buy or sell stocks: The Indian benchmark indices — the Sensex and Nifty 50 — closed lower on Tuesday, May 19, amid profit booking triggered by mixed global signals and ongoing worries over the US-Iran conflict, high crude oil prices, and weakness in the rupee.
The Sensex declined 114 points, or 0.15%, to settle at 75,200.85, while the Nifty 50 slipped 32 points, or 0.14%, to end the session at 23,618.
Stock market today
Nifty 50
The Nifty index started the session on a mildly positive note, opening nearly 25 points higher at 23,675.30. The index initially witnessed buying interest and climbed to an intraday high of 23,782.30. However, the momentum faded during the early half of the session, leading to profit booking that dragged the index lower to an intraday low of 23,587.20. Nifty eventually settled at 23,618.00, down by 31.95 points or 0.14%, indicating a cautious and range-bound undertone in the market.
“From a technical perspective, the 23,800–23,850 zone continues to act as an immediate resistance area, while strong support is placed in the 23,350–23,400 range. The daily RSI stands at 44.70, suggesting weakening momentum and a lack of strong bullish strength in the current trend. In the derivatives segment, significant put writing at the 23,500 strike coupled with aggressive call writing at the 23,700 strike suggests that the index is likely to remain range-bound in the near term. Considering the overall setup, traders are advised to maintain a cautious approach and closely monitor key support and resistance levels for further directional cues,” said Sumeet Bagadia, Executive Director at Choice Broking.
Bank Nifty
The banking benchmark index, Nifty Bank, started the session on a slightly positive note, opening nearly 17 points higher at 53,553.75. The index extended its gains during the early part of the session and touched an intraday high of 53,770.65. However, selling pressure at higher levels triggered profit booking, leading to a sharp decline of nearly 434 points from the day’s high, with the index slipping to an intraday low of 53,337.05. Nifty Bank eventually settled at 53,409.15, registering a marginal loss of 127.85 points or 0.24%, indicating a cautious undertone and lack of sustained buying momentum at higher levels.
“From a technical perspective, the 53,800–53,900 zone is acting as an immediate resistance area, while the 52,900–53,000 range continues to provide strong support. The daily Relative Strength Index (RSI) stands at 40.00, suggesting weakening momentum and indicating that the index is still trading in a mildly bearish zone. Overall, the price structure reflects consolidation with a negative bias, and traders are advised to remain cautious until a decisive breakout on either side confirms the next directional move,” Bagadia 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, 20 May: Vishnu Chemicals, Deepak Fertilisers & Petrochemicals Corporation, Thyrocare Technologies, Power Mech Projects, and Kirloskar Pneumatic Company.
1] Vishnu Chemicals: Buy at ₹598, Target ₹640, Stop Loss ₹570
Vishnu Chemicals share price is witnessing strong price action after recently breaching its all-time high zone. Following the breakout, the stock underwent a healthy pullback and gradually corrected towards its 20-day EMA, where buying interest once again emerged. In the latest trading session, the stock bounced sharply from the moving average support and gained more than 3%, indicating renewed bullish momentum at lower levels.
Technically, the stock continues to trade well above its key medium- and long-term moving averages, reflecting a strong underlying trend structure. The current setup suggests that the recent decline was merely a consolidation within an ongoing uptrend. Sustaining above the support zone may lead to a fresh upward move towards 640, which lies slightly above the previous all-time high region. The 570 level remains a crucial support and stop-loss zone for positional traders.
2] Deepak Fertilisers & Petrochemicals Corporation: Buy at ₹1324, Target ₹1425, Stop Loss ₹1256
Deepak Fertilisers & Petrochemicals Corporation share price has shown a strong recovery from lower levels after witnessing prolonged weakness in previous months. The stock is now gradually regaining bullish momentum and continues to maintain a healthy higher high–higher low formation on the daily chart, indicating strengthening price structure. Technically, the stock has taken support near its 200-day EMA and has managed to sustain above the key long-term trend indicator, which reflects stability from a short-term perspective.
Additionally, the stock is consistently respecting its 20-day EMA, signalling active buying support during minor declines. Recent price action near the falling trend-line also indicates accumulation and a possible breakout setup in the making. If the stock manages to sustain above the support zone, further upside towards 1425 may unfold in the coming sessions. The 1256 level should be considered as an important stop-loss level for this trade setup.
3] Thyrocare Technologies: Buy at ₹470, Target ₹505, Stop Loss ₹444
Thyrocare Technologies share price has displayed a strong reversal setup after taking immediate support near its 20-day EMA on the daily timeframe. The stock recently witnessed profit booking from higher levels, but the correction remained shallow as buyers quickly emerged near the short-term moving average support zone.
In the latest trading session, the stock bounced sharply and closed with strong gains, indicating renewed momentum and improving market sentiment. Technically, the stock continues to trade above its key moving averages, reflecting sustained bullish undertones in the broader trend. The price structure also suggests that the recent decline was part of a healthy consolidation rather than trend weakness. Momentum indicators remain supportive, while the strong recovery candle adds confidence to the ongoing uptrend. If the stock sustains above the support zone, it may gradually move towards the 505 target in the near term. The 444 level remains a crucial stop-loss and support area.
4] Power Mech Projects: Buy at ₹2480, Target ₹2660, Stop Loss ₹2360
Power Mech Projects share price has shown a notable recovery after witnessing a strong rebound from its 200-day EMA support zone, indicating fresh buying interest at lower levels. The stock had remained under pressure for several months, but recent price action suggests that the broader trend may now be turning positive. Technically, the stock has delivered a decisive close above its 20-day EMA, which reflects improving short-term momentum and renewed strength in the counter.
Additionally, the latest candlestick formation on the daily chart indicates bullish sentiment and hints towards continuation of the current upmove. Volume activity has also improved during the rebound phase, supporting the possibility of further upside from current levels. If the stock sustains above the support zone, it may witness a fresh rally towards 2660 in the coming sessions. On the downside, the 2360 level should be maintained as a strict stop-loss for this positional setup.
5] Kirloskar Pneumatic Company: Buy at ₹1581, Target ₹1700, Stop Loss ₹1515
Kirloskar Pneumatic Company share price has witnessed strong bullish momentum after successfully crossing above its 20-day EMA, indicating renewed buying interest in the stock. Following a sharp rally in recent sessions, the stock experienced minor consolidation near higher levels, but the latest trading session confirmed a strong rebound with fresh upward momentum. The stock is now trading close to its 52-week high zone, reflecting sustained strength in the ongoing trend.
Technically, all major moving averages are aligned positively, which highlights a healthy bullish structure on the daily chart. The strong recovery candle near short-term support levels further suggests that buyers continue to dominate at lower levels. If the stock sustains above the support zone, it may witness an extended move towards the 1700 target in the near term. Traders should keep the 1515 level as an important stop-loss, as any breach below this zone may weaken the current bullish setup.
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.
