Stock Picks: Five Recommendations from Sumeet Bagadia on Market Opportunities for May 27, 2026

Indian Stock Market Sees Correction Amid Global Weakness and Rising Crude Oil Prices

The Indian stock market experienced a correction on Tuesday, May 26, as benchmark indices Sensex and Nifty 50 ended their two-session gaining streak. The Sensex declined by 479 points, or 0.63%, to finish at 76,009.70, while the NSE's Nifty 50 fell 118 points, or 0.49%, to close at 23,913.70.

However, mid- and small-cap indices outperformed the broader market, with the BSE 150 Midcap index gaining 0.33% and the BSE 250 Smallcap index advancing 0.21%. The correction was attributed to profit booking, weak global sentiment, and rising crude oil prices, which weighed on market sentiment.

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

Nifty 50 Sees Correction Amid Weak Global Sentiment

The Nifty 50 opened with a marginal gap-down of 27.60 points at 24,004.10, reflecting a cautious start to the session after the previous rally. The index witnessed buying interest and gradually moved higher, registering its intraday high of 24,089.80. However, the momentum failed to sustain at higher levels as selling pressure emerged thereafter.

The weakness intensified during the second half, dragging the index steadily lower throughout the session. The Nifty eventually registered its intraday low of 23,885.45 towards the closing hours and settled at 23,913.70, ending the day with a decline of 118.00 points or 0.49% over the previous close.

Bank Nifty Sees Correction Amid Weakness in Banking Segment

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

The Bank Nifty index opened with a marginal gap-up of 18.15 points at 55,311.80, reflecting a relatively stable opening in the banking space. However, profit booking emerged at higher levels, and the index gradually slipped lower throughout the session. The selling pressure intensified during the second half, dragging Bank Nifty towards its intraday low of 54,979.75.

The index eventually settled at 55,092.90, ending the session with a decline of 200.75 points or 0.36%. The correction was attributed to weakness emerging after the recent sharp recovery and cautious sentiment among participants in the banking segment.

Technical Analysis Suggests Immediate Support and Resistance Zones

According to Sumeet Bagadia, Executive Director at Choice Broking, the formation of a bearish kicker candlestick pattern indicates profit booking emerging after the recent sharp upmove. The inability to sustain higher levels and closing near the intraday low reflects weakening short-term momentum and cautious sentiment in the near term.

Bagadia noted that immediate support is placed in the 23,750-23,800 range, while resistance is observed between 24,050 and 24,100 levels. The Relative Strength Index (RSI) stands at 51.51, indicating that momentum still remains above neutral territory despite the corrective move.

Stocks to Buy Amid Ongoing Tensions in US-Iran War Uncertainty

Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Wednesday, May 27:

1. Adani Energy Solutions: Buy at ₹1463, Target ₹1590, Stop Loss ₹1395
2. Wockhardt: Buy at ₹1700, Target ₹1850, Stop Loss ₹1620
3. Vedanta: Buy at ₹345, Target ₹375, Stop Loss ₹329
4. IFCI: Buy at ₹64.40, Target ₹70, Stop Loss ₹61.40
5. Tata Motors Passenger Vehicles: Buy at ₹386, Target ₹420, Stop Loss ₹369