The Indian stock market benchmark indices Sensex and Nifty 50 traded lower on Tuesday, slipping nearly 1% as investors booked profits following a sharp rally in the previous session. The decline came despite supportive global cues, indicating a cautious approach by market participants at higher levels.
On Monday, Sensex and Nifty 50 had surged close to 4% amid easing geopolitical tensions between India and Pakistan, coupled with renewed optimism surrounding progress in the US-China trade deal.
Nifty 50 Outlook
Chandan Taparia, Head – Derivatives and Technicals, Wealth Management, MOFSL, noted that the Nifty 50 index not only sustained the gap-up but also surged past its previous swing high of 24,857 (marked on 2nd December 2024), triggering a rounding bottom pattern on the weekly chart.
“Nifty 50 formed a big bullish candle on the daily frame and negated the sequence of lower lows. Now, it has to hold above 24,750 zones for an up move towards 25,200 then 25,500 zones while supports are shifting higher at 24,750, then 24,550 zones,” Taparia said.
Bank Nifty Outlook
Bank Nifty index formed a bullish candle on the daily scale as it gave a range breakout and also reclaimed the 20 DEMA. Now, Taparia believes, Bank Nifty has to hold above 55,250 zones for a bounce towards 55,750 then 56,000 levels, while on the downside support is seen at 55,000 then 54,750 zones.
Chandan Taparia has recommended three stocks to buy today, May 13. Taparia recommends buying PB Fintech, LTI Mindtree and Larsen & Toubro (L&T) shares.
Stocks to buy
Buy | PB Fintech | Target Price: ₹1,792 | Stop Loss: ₹1,644
PB Fintech share price is on the verge of giving consolidation breakout on daily chart. It is holding well above 20 DEMA and formed a bullish candle on a daily scale. Momentum indicator RSI is positively placed which has bullish implications, Taparia said.
He recommends buying PB Fintech shares for a target price of ₹1,792, while maintaining a stop loss at ₹1,644 level.
LTIMindtree | Buy | Target Price: ₹5,200 | Stop Loss: ₹4,800
LTIMindtree share price has given a range breakout on the daily chart and managed to close above the same. Buying is visible across IT stocks with a surge in volumes which may take price higher. MACD indicator is headed up to confirm the bullish momentum, Taparia said.
He suggests buying LTI Mindtree shares for a target of ₹5,200 and stop loss of ₹4,800 level.
L&T | Buy | Target Price: ₹3,785 | Stop Loss: ₹3,485
According to Taparia, L&T share price has a falling supply trend line breakout on the daily chart. It has formed a strong bullish candle on a daily scale and supports are gradually shifting higher. ADX line is rising which confirms the strength of the uptrend.
He recommends buying L&T shares for a target price of ₹3,785, while keeping a stop loss at ₹3,485 level.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
