Friday’s session saw gains in the domestic equity benchmark indices, the Sensex and Nifty 50, for the second day in a row due to purchases in Mahindra & Mahindra (M&M), Reliance Industries, and ITC.
The Nifty 50 regained the crucial 22,400 mark during the last hour, which caused the bears to evacuate. With a daily decrease of 1.38%, the India VIX also ended below the 20-point threshold at 19.99.
The 30-share BSE Sensex completed Friday’s session higher, up 253.31 points, or 0.34%, at the 73,917.03 level, while the Nifty 50 closed up 62.25 points, or 0.28%, at 22,466.10 level.
The Nifty Midcap 50 Index finished 0.94% higher while the Nifty Smallcap Index ended 0.84% higher.
The Indian market saw a strong comeback, according to Vinod Nair, Head of Research at Geojit Financial Services, amid conflicting global cues and uncertainty surrounding the US Federal Reserve. This recovery was primarily driven by the market’s outperformance and strong Q4 results.
“Further, some index heavyweight earnings surpassed expectations, and midcap and small-cap stocks continued to exhibit buying interest during dips. Auto and consumer durables particularly stood out with strong earnings,” added Nair.
Trade setup for Saturday
Nifty 50 Outlook
Senior Technical & Derivative Analyst Kunal Shah of LKP Securities claims that although the Nifty 50 index maintained its momentum, it was unable to cross the 22,500 barrier, which is the point at which the call side is building the greatest amount of open interest. The index must firmly breach this level in order to reach its all-time high level in the near future. The 22,300 level serves as the downside support, and drops towards this level are a great time to start long bets.4o.
Bank Nifty Outlook
Tejas Shah, Technical Research, JM Financial & BlinkX, explains that this week’s Bank Nifty underperformed in comparison to the Nifty 50. It closed around the 48,000 to 48,100 (+/- 50 point) barrier zone once more, and he thinks that the Bank Nifty can only continue to outperform if it can close above this resistance zone decisively; otherwise, profit booking is likely to continue. In terms of the downside, 48,150 / 48,500 represents resistance, while the support zone is located around 47,500-600 / 46,900-47,000.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today – May 18
Buy or sell stock ideas by Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi
BUY Kotak Mahindra Bank Ltd at ₹1,698 with a stoploss of ₹1,665 and a target of ₹1,740.
Dongre said that they have seen major support in this stock around ₹1,665. So, at the current juncture, the stock has again seen a reversal price action formation at the 1,698 price level, which may continue its rally till its next resistance level of ₹1,740. So traders can buy and hold this stock with a stop loss of ₹1,665 for the target price of ₹1,740 in the upcoming weeks.
BUY ITC Ltd at ₹436 with a stoploss of ₹428 and a target of ₹448.
In the short-term trend, the stock has seen a bullish reversal pattern; technically, retrenchment could be possible till 448. So, holding the support level of 428, this stock can bounce toward the level of 448 in the short term, so the trader can go along with a stop loss of 428 for the target price of 448, advised Ganesh.
BUY Reliance Industries Ltd (RIL)at ₹2,870 with a stoploss of ₹2,840 and a target of ₹2,920.
We have seen a strong support in this stock around 2,840 rupees. So, at the current juncture, the stock has again seen a reversal price action and bullish candlestick pattern formation at the 2,870 price level, which may continue its rally till its next resistance level of ₹2,920, so traders can buy and hold this stock with a stop loss of 2,840 for the target price of ₹2,920 in the upcoming weeks, said Dongre.
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 taking any investment decisions.
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Published: 18 May 2024, 08:27 AM IST
