Two stock recommendations for today, 29 May, by MarketSmith India:
Indraprastha Gas Ltd (current price: ₹213)
Why it’s recommended: Expansion into new markets, government support, and regulatory moat
Key metrics: P/E: 21.37 | 52-week high: ₹ 285.18 | Volume: ₹ 113.69 crore
Technical analysis: Reclaimed 200-EMA
Risk factors: Policy and regulatory risks, competition and market dynamics, technological disruptions
Buy at: ₹213
Target price: ₹245 in three months
Stop loss: ₹199
SBFC Finance Ltd (current price: ₹108.50)
Why it’s recommended: Focused niche in secured MSME lending, low credit risk with secured portfolio
Key metrics: P/E: 33.64 | 52-week high: ₹112.41 | Volume: ₹88.24 crore
Technical analysis: 21-DMA bounce
Risk factors: Geographical concentration, interest rate sensitivity
Buy at: ₹108.50
Target price: ₹122 in three months
Stop loss: ₹103
Nifty 50: How the benchmark index performed on 28 May
The Nifty 50 opened on a muted note at 24,832 and traded within a narrow range of 24,737–24,864, eventually closing near the day’s low at 24,752. After encountering resistance near 25,000, the index registered its second consecutive session of losses, accompanied by higher trading volumes, indicating selling pressure at higher levels. On the sectoral front, all major indices ended in the red, except Media and PSU Banks, which showed some resilience. The advance-decline ratio remained neutral, closing near 1:1, reflecting broad-based market indecision.
The index failed to sustain above 25,000 but continues to trade above all its key moving averages. It has been consolidating within a defined range of 25,200–24,400 over the past couple of weeks. Momentum indicators reflect indecision, with the RSI oscillating in a range-bound zone, suggesting a lack of directional strength. Meanwhile, the daily MACD has formed a negative crossover, indicating potential bearish momentum, though it remains above the central (zero) line, which offers a mildly positive undertone.
According to O’Neil’s methodology of market direction, the Nifty 50 transitioned from a “Rally Attempt” to a “Confirmed Uptrend”.
The index is currently encountering strong resistance in 25,000–25,200, which aligns with a previously established supply zone. Recent price action suggests that a decisive breakout and sustained move above this resistance band is critical to reaffirm the bullish trend. In the absence of such a breakout, the index is expected to remain range-bound and volatile in the near term. On the downside, key support levels are identified between 24,500 and 24,400, which could act as a cushion against further declines.
How did the Nifty Bank perform yesterday?
On Wednesday, the Nifty Bank opened lower and traded in a narrow range before gaining approximately 64 points (+0.12%). The index formed a bullish candle despite exhibiting a lower-high and lower-low pattern on the daily chart, reflecting ongoing consolidation over the past several weeks. The Nifty Bank opened at 55,328.60, fluctuated between a high of 55,521.80 and a low of 55,235.55, and closed at 55,417. A sustained breakout above 56,000 would likely indicate the initiation of a new upward trend.
Technically, the index remains above its key moving averages and near its all-time highs, despite the current sideways movement. However, momentum indicators suggest a pause in bullish sentiment, with the relative strength index (RSI) at 59, indicating neutrality, and the MACD showing a negative crossover, both appearing relatively flat.
According to O’Neil’s methodology of market direction, the Nifty Bank transitioned from an “Uptrend Under Pressure” to a “Confirmed Uptrend”.
The Nifty Bank is currently navigating in a sideways trading range, with a decisive breakout above 56,000 being key to confirming the continuation of its bullish momentum. Without this breakout, the index is expected to remain in its consolidation phase. A sustained close above 56,000 could pave the way for gains toward 57,500–58,800 in the near term. On the downside, immediate support levels are identified around 55,000, followed by 54,500.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market.
Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)
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.
