Stock Picks for Monday: Sumeet Bagadia Recommends Three Buys
Indian Benchmark Indices End Lower as Investors Book Profits Amid Negative Global Signals and Rising Crude Oil Prices
On Friday, May 15, the Indian benchmark indices, the BSE Sensex and the NSE Nifty 50, ended lower, snapping a two-session gaining streak. The decline was attributed to investors booking profits amid negative global signals, rising crude oil prices, and the continued weakness in the Indian rupee.
The BSE Sensex declined by 161 points, or 0.21%, to close at 75,237.99, while the NSE Nifty 50 slipped by 46 points, or 0.19%, to settle at 23,643.50. Selling pressure was visible across several sectoral indices, with the Metal, Oil and Gas, PSU Bank, Realty, Energy, and Commodities indices dropping over 1% each. However, the IT index bucked the trend and gained more than 1%.
The Indian rupee touched a fresh record low against the US dollar, briefly slipping past the 96-mark during intraday trade before ending 30 paise weaker at 95.94 per dollar. The sharp rise in crude oil prices also weighed on investor confidence, with Brent crude climbing more than 3 percent and trading above USD 108 per barrel, raising concerns over inflationary pressures and India's import bill.
Global cues remained subdued after US President Donald Trump concluded his two-day visit to Beijing without any significant progress on trade discussions or stronger backing from China regarding the ongoing West Asia conflict.
Market Sentiment Remains Under Pressure
Market sentiment remained under pressure, with the Relative Strength Index (RSI) standing at 45.13, indicating weak momentum and lack of strong bullish conviction. The volatility index, India VIX, increased by 0.95% to close at 18.79, suggesting a slight rise in market uncertainty.
In the derivatives segment, notable call writing was seen at the 23,700 strike, followed by 23,800, while significant put writing was observed at 23,500 and 23,400 levels, indicating near-term support zones within a defined trading range.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Sectoral Indices | Decline |
|---|---|
| Metal | 1.23% |
| Oil and Gas | 1.15% |
| PSU Bank | 1.08% |
| Realty | 1.04% |
| Energy | 1.02% |
| Commodities | 1.01% |
Technical Analysis
From a technical perspective, the immediate support is placed in the 23,450-23,500 range, while resistance is observed between 23,850 and 23,900 levels. The IT index bucked the trend and gained more than 1%, while the Bank Nifty Outlook suggests a bearish candlestick pattern with the intraday high near the opening level reflecting selling pressure right from the start of the session.
| Index | Support | Resistance |
|---|---|---|
| Nifty 50 | 23,450-23,500 | 23,850-23,900 |
| Bank Nifty | 53,000-53,100 | 54,400-54,500 |
Stock Recommendations
Sumeet Bagadia, Executive Director at Choice Broking, recommended buying the following three stocks: Dabur, Pidilite Industries, and Sun Pharma.
- Dabur: Buy at 467, SL at 444, TGT at 505
- Pidilite Industries: Buy at 1467, SL at 1405, TGT at 1595
- Sun Pharma: Buy at 1878, SL at 1801, TGT at 2000
Investor Takeaway
Investors should be cautious and book profits amid negative global signals and rising crude oil prices.
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