Looking ahead, the index maintains a positive outlook, supported by favourable domestic macroeconomic indicators and sustained institutional interest. A decisive move above 25,000–25,200 could pave the way for further upside in the near term.
Two stock recommendations for today, 30 May, by MarketSmith India:
Motilal Oswal Financial Services Ltd (current price: 809.95)
Why it’s recommended: Diverse business model and reputation for quality research
Key metrics: P/E: 18.83 | 52-week high: ₹1,064.00 | Volume: ₹308.39 crore
Technical analysis: Reclaimed 200-DMA
Risk factors: Regulatory and legal risks, reputation, and ethical risks
Buy at: ₹809.95
Target price: ₹950 in three months
Stop loss: ₹760
DCB Bank Ltd (current price: ₹ 145.50)
Why it’s recommended: Focused retail and SME lending strategy, granular, and secured loan book
Key metrics: P/E: 7.31 | 52-week high: ₹164 | Volume: ₹44.15 crore
Technical analysis: Cup-with-handle breakout
Risk factors: Moderate scale and limited market presence, vulnerability to sme credit cycles
Buy at: ₹145.50
Target price: ₹163 in three months
Stop loss: ₹137
Nifty 50: How the benchmark index performed on 29 May
The Nifty 50 opened on a positive note at 24,825 and touched an intraday high of 24,889 in early trade. However, the index soon lost momentum and slipped to the day’s low of 24,677. Despite the mid-session weakness, late buying interest—aided by monthly F&O expiry dynamics—helped the index reverse its losses and closed 81 points higher. Notably, it retested its 21-day moving average (21-DMA) and witnessed a sharp rebound. On the sectoral front, all major indices closed in the green, except PSU Banks and FMCG, which remained under pressure. The advance-decline ratio closed near 1:1, indicating broad-based market indecision.
The index continues to trade above all its key moving averages and consolidate within a defined range of 24,500–25,100 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 Nifty50 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, it is expected to remain range-bound and volatile in the near term. On the downside, key support levels are identified between 24,650 and 24,450, which could act as a cushion against further declines.
How did the Nifty Bank perform yesterday?
On Thursday, the Nifty Bank opened on a positive note but predominantly exhibited a sideways trading pattern, spending most of the session in negative territory. However, the final hour witnessed a recovery, allowing the index to close in the green, forming a bullish candle. Despite this late rally, the Nifty Bank remains in a consolidation phase and has yet to decisively break out. It opened at 55,571.40, oscillated between a high of 55,782.75 and a low of 55,096.45, and finally settled at 55,546.05.
Technically, the index remains above all 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 60 and the MACD showing a negative crossover.
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 trading within a sideways range, with a decisive breakout above 56,000 serving as a critical indicator for the continuation of its bullish momentum. A sustained move and close above this level would likely signal the commencement of a new upward trend. In the absence of such a breakout, the index is expected to remain in its consolidation phase. Should the breakout materialise, the Nifty Bank could target near-term gains in 57,500–58,800. On the downside, immediate support levels are observed around 55,000, with a secondary support near 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.
