Motilal Oswal Analyst Suggests Three Stocks for Potential Investment on 26 May 2026

Indian Stock Market Expected to See Muted Opening on Tuesday

The Indian stock market is poised to open on a muted note on Tuesday, following mixed cues from global markets amid cautiousness over the US-Iran peace talks. The trends on Gift Nifty also indicate a subdued start for the Indian benchmark index, with the Gift Nifty trading around 24,040 level, a discount of nearly 23 points from the Nifty futures' previous close.

In the previous session, the Indian equity market witnessed a stellar rally, with the benchmark Nifty 50 closing above 24,000 level. The Sensex jumped 1,073.61 points, or 1.42%, to close at 76,488.96, while the Nifty 50 settled 312.40 points, or 1.32%, higher at 24,031.70.

Key Market Indicators

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According to Chandan Taparia, Head Derivatives & Technicals at Motilal Oswal Financial Services Ltd, the maximum Call Open Interest (OI) is at 24,000 then 24,500 strike, while the maximum Put OI is at 24,000 then 23,900 strike. The option data suggests a broader trading range in between 23,500 to 24,500 zones, while an immediate range between 23,800 to 24,300 levels.

Nifty 50 Outlook

Nifty 50 index has formed a bullish candle on the daily frame and has been making higher lows from the last three sessions. To sustain the up move, Nifty 50 needs to hold above 24,000 zones for an up move towards 24,200 then 24,400 zones, while on the downside, support can be seen at 23,900 then 23,800 zones.

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Bank Nifty Outlook

Bank Nifty index rallied 1,238.30 points, or 2.29%, to close at 55,293.65 on Monday, forming a big bullish candle on the daily scale as strong buying interest was visible at lower levels. The Bank Nifty index has finally given a range breakout on the daily scale after nine sessions above 54,500 levels. Now, it has to hold above 55,250 zones for an up move towards 55,750 then 56,000 zones, while on the downside, support is seen at 55,000 then 54,750 levels.

Stocks to Buy

Chandan Taparia has recommended three stocks to buy today:

• PNB Housing Finance: Buy | Target Price: ₹1,150 | Stop Loss: ₹1,050 PNB Housing Finance share price has broken out from a bullish "Pennant" pattern suggesting a continuation of the uptrend. It is respecting its 20 DEMA support zones. The ADX line is rising which confirms the strength of the uptrend.
• Adani Power: Buy | Target Price: ₹245 | Stop Loss: ₹226 Adani Power share price has given a pole and flag breakout on the daily chart indicating continuation of the ongoing uptrend. The stock formed a strong bullish Marubozu candle backed by robust volumes highlighting aggressive buying interest at higher levels. RSI has also witnessed a bullish crossover adding further strength to the positive momentum setup.
• BHEL: Buy | Target Price: ₹444 | Stop Loss: ₹406 BHEL share price is in an overall uptrend and is respecting its 20 DEMA support zone with slight dips being bought into. The RSI indicator is rising which confirms the bullish momentum.