Indian stock market: The Indian stock market indices, Sensex and the Nifty 50, closed higher for the third consecutive session, despite varying signals from global markets, on Tuesday, May 14.
Following a nearly 2 percent decline last week, market benchmarks rebounded this week, buoyed by improved valuations. The medium- to long-term prospects for the Indian stock market remain optimistic, supported by the nation’s promising economic growth outlook.
The Nifty 50 began trading at 22,112.90, slightly up from its previous close of 22,104.05. Throughout the day, it fluctuated between an intraday high of 22,270.05 and a low of 22,081.25. Ultimately, the index concluded the session with a gain of 114 points, or 0.51 percent, closing at 22,217.85. Notably, 36 stocks recorded gains.
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Meanwhile, Sensex commenced trading at 72,696.72, down marginally from its previous close of 72,776.1. It reached an intraday high of 73,286.26 and a low of 72,683.99. The index ended the day 328 points, or 0.45 percent, higher at 73,104.61, with 20 stocks registering gains.
“Nifty recovered from lower levels to close with gains of 49 points (+0.2%) at 22104 levels on the back of likely short covering as well as buying emerging at lower levels. Sector-wise it was a mixed bag with buying seen in Metals, Realty, and Pharma. Nifty corrected by over 500 points in the last week because of nervousness among market participants due to the rising volatility index and consistent selling by FIIs. India VIX has been on a rising trend for 13 consecutive days and surged sharply by 100% from 10 to 20 levels. Further, the outflow of Rs.21620 crores by FIIs last week also dented the sentiments. Going ahead, markets would take cues from the voter’s turnout data from the 4th phase which has been a major concern so far. Also, India’s retail inflation will be released later today,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Brokerage firm Motilal Oswal has recommended three stocks to buy.
Stocks to buy this week
Bharti Airtel: Buy at ₹1,301 | Target Price: ₹1,380 | Stop Loss: ₹1,260
Bharti Airtel is in overall uptrend and forming higher lows on monthly scale from past eight months. On weekly scale the stock retested the previous breakout zone and move higher. On daily scale the stock is on the verge of range breakout after five sessions and formed a strong bullish candle in spite of market weakness. It is trading above its short term moving averages and momentum indicator Relative Strength Index (RSI) is also on the verge of Bullish crossover which indicates momentum to pick up in coming sessions. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 1260 levels on closing basis for a new high target towards 1380 zones.
Dixon Technology: Buy at ₹8,418 | Target Price: ₹9,000 | Stop Loss: ₹8,150
Dixon Tech is in strong uptrend and trading at life time high territory with strong outperformance within consumer durable space. On monthly scale the stock is forming higher lows from past sixteen months and holding strong in spite of market weakness. On daily scale the stock is on the verge of giving box breakout after nine sessions and likely to move higher. It is perfectly holding to its 50DEMA from past many sessions and momentum oscillator Relative Strength Index (RSI) is also holding at higher zones which indicates overall strength in the stock. Thus looking at the overall chart structure we are recommending to buy the stock with keeping stop loss below 8150 levels on closing basis for a new high target towards 9000 zones.
Hindustan Copper Ltd: Buy at ₹373 | Target Price: ₹410 | Stop Loss: ₹355
Hind copper is trading at multi month highs and holding well above 350 zones. On daily scale…
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