During the session, the Sensex reached a new all-time high of 75,636.50, but it was unable to maintain its gains and ended the day 8 points lower at 75,410.39. The Nifty 50 reached a new all-time high of 23,026.40 during the session, but finished the day 11 points down at 22,957.10.
According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, the Nifty 50’s 23,000 milestone is something to celebrate, and the positive takeaway was that the benchmark ended a choppy session just a tad below the dotted lines, most importantly, shrugging off extremely weak overnight Wall Street cues.
Buyers are seen confident amidst investors hoping or expecting continuation of the current regime in the general elections, and oil prices tumble towards $76 a barrel, said Tapse.
Also Read: Stock market today: Sensex, Nifty 50 end flat on profit booking at record high levels
Stocks to buy on Monday — May 27
On stocks to buy on Monday, Sumeet Bagadia recommended three shares to buy on Monday — Larsen & Toubro (L&T), Axis Bank, and Bharti Airtel Ltd.
Larsen & Toubro (L&T)
L&T is currently trading at ₹3,625, exhibiting a strong reversal from the bottom level. The price action has formed a strong bullish candle with substantial volume, signalling a bullish reversal following a correction from the top. There is potential for LT to achieve a target price of ₹3,860 in the near term, making it advisable to consider purchasing at a CMP of ₹3,625.90 and adding on dips near ₹3,525 levels.
Additionally, LT is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.
To effectively manage risk, it is recommended to implement a stop-loss (SL) at ₹3,475. This precautionary measure is crucial to safeguarding your investment in the event of an unexpected market reversal.
In summary, considering the technical analysis and current market conditions, LT appears to be an attractive buying opportunity at CMP of ₹3,625.90; it can also be added to dips near ₹3,525 for those aiming for a ₹3,860 price target with a stop loss of ₹3,475.
Also Read: SEBI introduces new regulations for sharing of real-time price data with third parties
Axis Bank Ltd
Axis Bank is exhibiting promising bullish signals in its recent price movements forming a rounding bottom pattern. The stock has shown resilience by rebounding from a support level of ₹1,125, which is closely aligned with its 20-day Exponential Moving Average (EMA), suggesting strong investor interest at this point. Currently trading around ₹1,174 levels, Axis Bank has successfully recovered from the support and surpassed the crucial resistance at ₹1,150. This breakout often signifies the initiation of a bullish trend, indicating potential for further upward movement.
The stock is trading above its key moving averages, reinforcing its strength in the current market conditions. This alignment with the moving averages suggests sustained positive momentum. A minor resistance can be observed at the ₹1,185 level. If Axis Bank manages to overcome this resistance, it is likely to continue its upward trajectory.
Surpassing the ₹1,185 resistance level would be a significant milestone, potentially driving the stock towards its target of ₹1,270. Investors should monitor this level closely, as a successful breach could indicate continued bullish momentum. Overall, the technical indicators suggest that Axis Bank is well-positioned for further gains, making it a compelling prospect for investors seeking to capitalise on its upward trend.
Based on the above analysis we expect Axis Bank to move higher towards ₹1,270 and hence we recommend buying Axis Bank at CMP of ₹1,174, it can also be added in dips near ₹1,150 with a stop loss of ₹1,105.
Bharti Airtel Ltd
Bharti Airtel is currently trading at ₹1,388.50 levels, reflecting strong bullish momentum. The stock recently broke out above the ₹1,360 level with substantial trading volumes, indicating robust buying interest and strength in the stock. This breakout is a significant technical event, suggesting the potential for further upward movement.
On the downside, the stock has a strong support level near ₹1,330, which aligns closely with its 20-day Exponential Moving Average (EMA). This level serves as a critical support zone, providing a cushion against any potential short-term pullbacks. Additionally, Bharti Airtel is trading above its key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, underscoring the stock’s overall bullish trend and positive sentiment in the market.
Given the current technical setup, Bharti Airtel has the potential to move higher, with a target of ₹1,490 as projected by the Fibonacci extension levels. The strong breakout, combined with the supportive moving averages, indicates a favourable outlook for the stock. Investors holding the stock should consider maintaining their positions, with a trailing stop loss at ₹1,330 to protect against any downside risks. Overall, Bharti Airtel appears well-positioned for continued gains, making it an attractive opportunity for further investment.
Based on the above analysis we recommend buying Bharti Airtel at CMP of ₹1,388.50, it can also be added on dips near ₹1,350 with a stop loss of ₹1,330 for the target of ₹1,490.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 25 May 2024, 11:53 AM IST
