Axis Securities Analyst Endorses Ajanta Pharma, Tata Communications, NMDC as Buys for May 15th

Stock Market Today: Sensex and Nifty 50 Open Higher

The Indian stock market began the day on a positive note, with benchmark equity indices Sensex and Nifty 50 opening higher on Friday, 15 May. This surge is attributed to gains in IT stocks and positive cues from US markets. The BSE Sensex rose by 451.46 points, or 0.60%, to 75,850.18 in early trade, while the NSE Nifty 50 advanced 143.25 points, or 0.60%, to 23,832.85.

Leading Gains on the Sensex

Leading gains on the Sensex were Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Kotak Mahindra Bank, HDFC Bank, Power Grid Corporation of India, Bharti Airtel, Titan Company, Bajaj Finance, and Maruti Suzuki India. These stocks propelled the Sensex to its current level.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Declines in Oil Marketing Companies

Shares of oil marketing companies declined over 2% after petrol and diesel prices were increased by ₹3 per litre each, marking the first hike in more than four years, amid rising losses due to elevated crude oil prices. Brent crude, the global benchmark, climbed more than 1% to trade above $107 per barrel.

Nifty 50 Outlook

The Nifty 50 has remained extremely volatile within a broad trading range of 24,500 to 23,200 for the past month, indicating a lack of strength and direction. As a result, any range breakout on either side may indicate the further direction. At current levels, 23,200-23,100 will act as a crucial support zone. On the upside, any sustainable close above the 24,000 level may trigger upside momentum toward the 24,300–24,500 levels.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Stock Picks for Today

Ajanta Pharma Ltd

Ajanta Pharma Ltd has decisively surpassed the "multiple resistance zone" of 3130-3140 on a closing basis, amid heavy volume, indicating increased participation at the breakout zone. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up alongside the price rise, which further confirms the bullish trend. The daily and weekly "Bollinger Band" buy signal indicates increased momentum.

Tata Communications Ltd

Tata Communications Ltd has experienced a trend reversal, with higher highs and lower lows, indicating bullish sentiment. In addition, the stock is well above its 20-, 50-, and 100-day SMAs, which reconfirms the bullish trend. This breakout around the ₹1,620 level was accompanied by huge volume spurts, signalling increased participation.

NMDC

NMDC is in a strong uptrend, with a series of higher tops and bottoms, indicating sustained strength. Additionally, the stock is well above its 20, 50, and 100-day SMAs, which reconfirms the bullish trend. These averages are also inching up along with the price rise, which reconfirms the bullish trend. Huge rising volumes along with price increases indicate increased participation.