Stocks to buy or sell: Sensex and Nifty 50 extend rally on foreign inflows and positive global cues
The Sensex and Nifty 50, key domestic equity benchmarks, continued their upward momentum in Saturday’s trading session, marking a three-day rally. This surge was fueled by fresh inflows of foreign investments and favorable signals from international markets.
In the second special trading session, the BSE Sensex closed at 74,005.94, up by 88.91 points or 0.12%. Similarly, the NSE Nifty 50 rose to 22,502.00, indicating a gain of 35.90 points or 0.16%. The broader market also saw positive movement, with the Nifty Midcap 100 and Nifty SmallCap 100 indices rising by 0.51% and 0.82% respectively. The India VIX, a fear gauge index, ended the session with a 3.67% increase.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the market’s performance, stating that the recovery momentum was sustained by positive global signals and strong earnings from index heavyweights. Despite concerns over high valuations, mid- and small-cap stocks outperformed the broader index, driven by buying in heavyweight sectoral stocks.
Looking ahead, uncertainties remain regarding the timing of US Fed rate adjustments, with market participants eagerly awaiting clarity from an upcoming Fed chair speech. The release of PMI data from the US and India for May will also be closely monitored for further market insights. Nair anticipates continued volatility in the near term due to uncertainties surrounding election results and quarterly earnings.
Sumeet Bagadia, Executive Director at Choice Broking, recommended three stocks to buy on May 21 – Hindalco, GAIL, and Ashok Leyland. These stocks are technically positioned for a potential upmove, according to Bagadia’s analysis.
Hindalco, currently trading at ₹660.35, has strong support at ₹635 and resistance at ₹666. The stock’s bullish momentum is supported by its position above key moving averages and an RSI of 67.79, indicating further growth potential.
GAIL, trading at ₹208.75, has a strong support level at 200 and a minor resistance at 212. The stock’s upward trend is supported by its position above key moving averages and an RSI of 60.16, suggesting room for further growth.
Ashok Leyland, trading at ₹210.60, recently broke out from a flag and pole pattern, indicating strength and potential for further gains. The stock has strong support at 200 and is trading above key moving averages, presenting a bullish outlook.
Investors are advised to consider these recommendations in light of their own investment goals and risk tolerance. It is always recommended to consult with certified experts before making any investment decisions.
