Top three stocks recommended by Ankush Bajaj for 30 May
Buy Welspun Corp Ltd (current price: ₹895)
- Why it’s recommended: The stock has made a new lifetime high with good volume and, on the lower time frame, has given a rectangle breakout, which indicates the start of a new trend and suggests a potential for further upside.
- Key metrics: Resistance level: ₹950– ₹960 (short-term target zone); support level: ₹868 (pattern invalidation level); pattern: Lifetime high breakout with volume; Rectangle breakout on lower time frame; RSI: Bullish on both daily and lower time frames, confirming strength in the breakout
- Technical analysis: The breakout from the rectangle pattern on lower time frames, combined with strong volume and a new lifetime high on the daily chart, points to a continuation of the bullish trend. Sustaining above ₹895 increases the probability of achieving the projected targets.
- Risk factors: A breakdown below ₹868 could invalidate the bullish breakout. Broader market corrections or sector-specific weakness may also affect price action.
- Buy at: ₹895
- Target price: ₹950– ₹960 in 4–5 days
- Stop loss: ₹868
Buy Lloyds Metals and Energy (current price: ₹1413.50)
- Why it’s recommended: On the hourly chart, the stock has given a triangle breakout, indicating the possibility of a strong upward move. Additionally, both RSI and MACD are showing positive signals, supporting the bullish momentum and suggesting potential for further gains.
- Key metrics: Resistance level: ₹1470– ₹1490 (short-term target zone); Support level: ₹1380 (pattern invalidation level); Pattern: Triangle breakout on hourly chart; RSI: Bullish on hourly chart; MACD: Positive crossover, supporting upward momentum
- Technical analysis: The breakout from the triangle pattern on the hourly chart, backed by positive RSI and MACD indicators, signals a continuation of the uptrend. Sustaining above ₹1413.50 enhances the probability of achieving the target zone in the near term.
- Risk factors: A breakdown below ₹1380 may invalidate the bullish breakout. Broader market weakness or unexpected sectoral news could affect price performance.
- Buy at: ₹1413.50
- Target price: ₹1470– ₹1490 in 3–4 days
- Stop loss: ₹1380
Also Read: Returns trump valuations: Are these stocks screaming a buy?
Buy Ashok Leyland Ltd (current price: ₹240.75)
- Why it’s recommended: On the hourly chart, the stock is poised to give a triangle and falling wedge breakout. Once it sustains above the ₹242 level, a strong pullback is expected, which could lead to a short-term rally toward the target zone.
- Key metrics: Resistance level: ₹249– ₹252 (short-term target zone); Support level: ₹235 (pattern invalidation level); Pattern: Triangle and falling wedge breakout setup on hourly chart; RSI: Trending positively on the hourly chart, indicating strength building; MACD: Showing signs of a potential bullish crossover
- Technical analysis: The confluence of bullish chart patterns like triangle and falling wedge, along with improving momentum indicators, suggests a strong potential for an upward move. A sustained move above ₹242 will confirm the breakout and improve the probability of reaching the targets.
- Risk factors: Breakdown below ₹235 may invalidate the setup. Broader market volatility or negative news flow may impact the price movement.
- Buy at: ₹240.75
- Target price: ₹249– ₹252 in 3–4 days
- Stop loss: ₹235
Market Wrap
On Thursday, the Indian stock market witnessed a dramatic session on monthly expiry day. After opening with a gap-up, indices came under pressure and traded weak for most of the day, reflecting cautious sentiment and lack of follow-through buying. However, in the final hour of trade, markets staged a sharp rally, fueled by short-covering and expiry-led momentum, helping key indices to close firmly in the green.
The Nifty 50 ended 81.15 points higher, up 0.33%, at 24,833.60. The BSE Sensex climbed 320.70 points or 0.39% to settle at 81,633.02. The Bank Nifty also saw a strong recovery, ending 129.05 points higher, up 0.23%, at 55,546.05.
Among sectors, metal stocks led the rally with a 1.21% gain, followed by the realty index which rose 1.14%, and the pharma index which added 0.92%.
On the flip side, the PSU bank index slipped 0.24%, the FMCG index dipped 0.13%, and the PSE index was marginally down by 0.02%.
In the list of top gainers, IndusInd Bank rose 2.36% driven by strong buying interest. Sun Pharma gained 2% amid renewed optimism in the pharma sector. Adani Ports closed 1.96% higher on the back of stock-specific momentum.
Among laggards, HDFC Life declined 1.08% as traders booked profits. Tata Consumer dropped 1.03% due to weak sentiment in FMCG counters. Bharat Electronics Ltd (BEL) was down 0.93%, facing some pressure after a recent rally.
Also Read: Intense competition hurts paint companies’ profitability; more pain in the offing
Nifty Technical Analysis
The Nifty opened at 24,825 and witnessed a volatile session, hitting an intraday high of 24,892 and a low of 24,677, before closing at 24,833.60—near yesterday’s opening level. Despite breaching the 24,700 support intraday, the index managed to reclaim ground and close with mild gains, indicating some intraday recovery.
However, the broader range of 24,700–25,000 remains intact, with the index struggling to decisively move beyond the 24,900–25,000 resistance zone. The price action suggests a continued tug-of-war near key levels, with bulls defending support while facing stiff resistance overhead.
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From a broader trend perspective, Nifty continues to trade above both the 20-day SMA (24,672) and the 40-day EMA (24,251), keeping the long-term uptrend structure valid.
On the daily chart, the RSI has ticked up to 57, showing slight improvement, but the MACD remains in a short signal, albeit above the zero line—indicating weakness is fading, but not yet reversed.
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On the hourly chart, the setup has turned mixed with early signs of improvement. The index closed slightly above the 20-hour SMA (24,797) and the 40-hour EMA (24,809), suggesting a possible shift in short-term sentiment. The hourly MACD has generated a buy signal, though still below the zero line, and RSI has recovered to 55, reflecting stabilizing momentum. However, sustained movement above the 24,900–25,000 zone is needed to confirm strength.
India VIX cooled off sharply by 8.87% to settle at 16.42, suggesting reduced fear and intraday volatility.
Outlook
Nifty remains range-bound between 24,700 and 25,000, with a neutral to slightly positive bias for the short term. A decisive breakout above 25,000 could pave the way toward 25,150–25,200 levels. On the downside, 24,700 continues to act as immediate support; a breach below this could expose the index to 24,500 once again.
Traders are advised to stay selective and wait for a directional confirmation before taking aggressive positions.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
