Nifty Trades Flat, Vaishali Parekh Suggests Three Buys for May 27

Indian Stock Market Witnesses Volatility Amid Global Uncertainty

The Indian stock market remained volatile and ended lower on Tuesday, despite mixed global cues and lingering geopolitical uncertainty. The key benchmark indices of the Indian stock market saw significant declines, with the Nifty 50 index ending 118 points lower at 23,913. The BSE Sensex also lost 479 points and closed at 76,009, while the Bank Nifty index corrected 200 points and finished at 55,092.

Sectoral participation remained mixed, with metals and energy counters witnessing buying interest, whereas financials and realty stocks traded under pressure. The broader markets continued to outperform the benchmarks, with both the midcap and smallcap indices gaining around 0.5% each.

The Gift Nifty Live Chart is signalling a sideways-to-negative opening, with the index opening flat at 23,911 and touching an intraday low of 23,871. By 7:35 AM, the index was trading around 23,875, nearly 40 points below the spot Nifty close on Tuesday.

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According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the Gift Nifty live chart is signalling a sideways-to-negative start on Dalal Street. The index is trading red with marginal loss against the spot Nifty close on Tuesday, and is facing resistance at 24,100. Breaking above this resistance, the 50-stock index may soon touch 24,300.

Vaishali Parekh believes that the Nifty 50 index would face tough resistance near the 24,300 zone, which needs to be decisively breached. On the downside, the 23,800 level would be the important near-term support, which needs to be sustained to maintain the overall bias intact.

On the outlook for the Bank Nifty today, Parekh said the key benchmark index halted its upward move, finding resistance near the 55,500 level, and then gradually slid, erasing some gains to close the session near the 55,100 level, with a positive bias maintained for the coming sessions.

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"The Bank Nifty index would have the near-term resistance of the 57,000 zone of the 200-period MA, which needs to be breached decisively to establish more conviction, whereas, on the downside, the 53,500 zone shall be maintained as the important support, which needs to be sustained as of now," said Parekh.

Vaishali Parekh has recommended three stocks for today: Morepen Laboratories, Radico Khaitan, and AU Small Finance Bank.

Recommended Stocks:

1. Morepen Laboratories: Buy at ₹43.50, Target ₹46, Stop Loss ₹42
2. Radico Khaitan: Buy at ₹3589, Target ₹3750, Stop Loss ₹3530
3. AU Small Finance Bank: Buy at ₹1012, Target ₹1035, Stop Loss ₹995