Trade Spotlight: Navigating May 20 Market for Stocks Including Bandhan Bank, SBI Life Insurance, Hexaware Technologies, Angel One, and Arvind

Market Breadth Improves Amid Consolidation

The benchmark indices wiped out gains in late trade and finished the session moderately lower on May 19. However, market breadth improved, with 1,942 shares advancing against 997 declining shares on the National Stock Exchange (NSE).

Short-Term Trading Ideas

Several stocks have emerged as potential buys and sells in the short term, based on technical analysis.

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Technical Analysis Insights

• Bandhan Bank has witnessed profit booking at higher levels, but its medium-term trend remains positive. It is trading near the 20-day Simple Moving Average (SMA), indicating a strong possibility of a fresh uptrend.
• SBI Life Insurance Company has formed a promising reversal pattern on the weekly and daily charts, with higher bottoms and trading above the 20-day SMA. It is expected to continue its positive momentum.
• Bajaj Finserv has found support near an important retracement level and formed a promising reversal pattern on the daily charts. It is trading above the short-term support zone of Rs 1,700.
• Hexaware Technologies has started showing early signs of a trend reversal on the upside, with higher highs and higher lows on the daily chart. It has given a breakout from a Cup and Handle pattern.
• Angel One has broken out of its long-term Triangle pattern, indicating the possibility of a larger upmove ahead. It has pushed most oscillators on the shorter timeframe into the overbought zone.
• Latent View Analytics was trading in a narrow consolidation range of Rs 277–324 on the daily chart since April 6, indicating a phase of accumulation. It has given a breakout from the range, which is a bullish sign.
• Arvind has given a breakout above the long-term cup pattern, along with a breakout from short-term consolidation accompanied by an expansion in volumes.
• Glenmark Pharma has given a breakout after a minor correction by breaking the falling trendline. This breakout has occurred with rising volumes, and the stock has regained levels above the 20-day EMA after experiencing a small correction.
• Lodha Developers has exhibited a negative reversal pattern, wherein prices are forming lower highs while the 14-period RSI is forming higher highs. The stock is in a downtrend, marked by the formation of lower highs and lower lows.