JSW Energy Among Top Picks for Short-Term Gains

Indian Equities Remain Volatile Amid Global Tensions

The Indian equities market remained volatile during the week ended Friday, 29 May, due to renewed US-Iran tensions, fluctuating crude oil prices, persistent FII selling, and MSCI-related rebalancing. The benchmark Nifty 50 ended at 23,547.75 on Friday, losing 1.50% for the day. For the week, the index shed 0.72%, while on a monthly scale, it declined nearly 2% in May after a 7.5% rise in April.

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the Nifty 50 has now retreated towards the critical 23,300–23,100 support band, which remains the key level for the medium-term trend. Patel believes that as long as this zone holds, the broader structure remains constructive.

For Bank Nifty, the breakout above 54,500 remains valid, and as long as the index sustains above the 52,800–53,200 support zone, the bullish bias is intact, said Patel. A decisive move above 55,500 could open the doors for an advance towards 56,000–58,000.

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Stock Picks for the Short Term

Jigar Patel recommends buying the following three stocks for the next 1-2 weeks:

These stocks have shown positive technical indicators, including breakouts on the weekly chart and strengthening momentum. JSW Energy shares have recently delivered a breakout on the weekly chart, signalling a positive shift in trend and momentum. AIA Engineering's share price is further supported by positive readings from key indicators such as RSI, MACD, DMI, and AIGEN-G. Adani Energy Solutions has also shown a breakout above the previous swing high, indicating a continuation of the bullish trend and strengthening price momentum.

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

Traders may consider accumulating these stocks in the recommended zones, with strict stop-losses to manage risk. The stocks have the potential to rally towards their respective target prices in the coming weeks.