In the second special trading session, the 30-share BSE Sensex concluded at 74,005.94, marking a gain of 88.91 points, or 0.12%. Meanwhile, the NSE Nifty 50 surged to 22,502.00, indicating an increase of 35.90 points, or 0.16%. Across the broader market spectrum, the Nifty Midcap 100 saw a 0.51% uptick, while the Nifty SmallCap 100 benchmark indices experienced a 0.82% rise. The India VIX, serving as the fear gauge index, concluded Saturday’s session with a 3.67% increase.
“The domestic market has sustained its recovery momentum from recent lows, bolstered primarily by positive signals from its global counterparts and better-than-anticipated earnings from index heavyweights. Mid- and small-cap stocks outperformed the broader index this week despite concerns over high valuations. The broader market remained positive, driven by persistent buying in heavyweight sectoral stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nair added, “However, uncertainties persist regarding the timing of US Fed rate adjustments, with market participants eagerly awaiting clarity from an upcoming Fed chair speech. Next week, the release of PMI data from both the US and India for May will be closely monitored for further market insights. We anticipate continued volatility in the near term amid ongoing uncertainties surrounding election results and quarterly earnings.”
Sumeet Bagadia, Executive Director at Choice Broking, has identified three breakout stocks on May 21. These stocks, which have seen a breakout from their recent levels, are poised for significant upside, presenting a hopeful opportunity for potential investors.
These three stocks to buy include Hindalco, GAIL and Ashok Leyland.
Here are the three stocks to buy on May 21 –
Hindalco: Buy at ₹660.35 | Target Price: ₹710 | Stop Loss: ₹635
The stock is currently trading at 660.35, demonstrating strong performance as it navigates above key support and resistance levels. Notably, there is robust support at 635, closely aligned with its 20-day EMA, providing a solid foundation for the stock. Additionally, a minor resistance is observed at 666 levels. Once the stock surpasses this resistance, it has the potential to advance towards the target of 710 and beyond.
The stock’s current trading position above all significant moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, underscores its bullish momentum and overall strength. This alignment of moving averages often signals sustained upward movement, further boosting investor confidence.
Furthermore, the momentum indicator RSI is positioned at 67.79, indicating considerable strength and suggesting that the stock is not yet in overbought territory, thus providing room for further growth.
Investors who have held the stock from lower levels are advised to continue trailing their stop loss to protect gains while allowing for potential upside movement. For those considering fresh investments, any dips towards the support level of 635 could present an opportune entry point, ensuring a favourable risk-reward scenario.
According to the aforementioned technical analysis, we advise buying HINDALCO at CMP of 660.35, it can be added in dips around 647 for the target of 710 levels, if the stock closes below 635, our analysis will be invalid.
GAIL: Buy at ₹208.75 | Target Price: ₹225 | Stop Loss: ₹204
GAIL is currently trading at 208.75, showcasing positive momentum as it remains above critical support and resistance levels. The stock has a strong support near the 200 level, which aligns closely with its 20-day EMA, providing a stable base. This support level is crucial for maintaining the stock’s upward trajectory.
Currently, GAIL is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, indicating a solid bullish trend. The alignment of these moving averages often signals sustained strength and a favourable outlook for the stock.
On the higher side, there is a minor resistance near 212 levels. Once the stock surpasses this resistance, it has the potential to move higher towards the target of 225 levels. This breakout would likely attract more buying interest, pushing the stock towards new highs.
The momentum indicator RSI is also trending upwards, currently at 60.16, suggesting continued strength and room for further growth. The RSI level indicates that the stock is not yet overbought, leaving ample space for additional upward movement.
In summary, GAIL’s strong support at 200, its position above all key moving averages, and a potential breakout above 212 signal a promising trajectory towards the target of 225. Investors holding the stock should continue to monitor these levels and consider maintaining their positions or adding on dips for the anticipated move higher.
Based on the aforementioned technical analysis, we advise buying GAIL at CMP of 208.75, it can be added in dips around 204 for the target of 225 levels, if the stock closes below 200, our analysis will be invalid.
Ashok Leyland: Buy at ₹210.60 | Target Price: ₹228 | Stop Loss: ₹200
ASHOKLEY is currently trading at 210.60 levels, demonstrating a robust upward momentum. The stock recently achieved a strong breakout from a flag and pole pattern on the daily charts above 204 levels, which indicates significant strength and a potential for further gains. This technical pattern suggests a continuation of the prior uptrend, bolstered by substantial buying interest.
The stock finds substantial support at the 200 level, providing a solid foundation for its current price action. Moreover, ASHOKLEY is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels. This alignment across different time frames indicates a well-established bullish trend, affirming the stock’s positive outlook.
Traders who have positions from lower levels are advised to maintain their holdings, employing a trailing stop loss of 200 on a closing basis to protect against downside risk. This strategic stop loss placement ensures that profits are safeguarded while allowing room for the stock to continue its upward trajectory.
The breakout target, derived from the Fibonacci Extension, suggests a price objective near 228 levels. This target offers a potential upside from the current trading level, making ASHOKLEY an attractive proposition for both current holders and prospective investors.
In conclusion, ASHOKLEY’s breakout above 204, supported by strong technical indicators and EMA levels, presents a compelling case for continued upside towards the 228 level. Investors should maintain their positions with a trailing stop loss at 200, ensuring they capitalize on the stock’s upward momentum while managing risk effectively.
Based on the aforementioned technical analysis, we advise buying ASHOKLEY at CMP of 210.60, it can be added in dips around 204 for the target of 228 levels, if the stock closes below 200, our analysis will be invalid.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 19 May 2024, 10:28 AM IST