Among sectoral indices, Nifty FMCG was the top laggard, falling 1.22% in early trade, followed by losses in metal, consumer durables and auto stocks. On the gainers’ side, Nifty IT rose 0.5%, while PSU bank and realty indices added 0.3% each.
Top 3 stocks to buy today, recommended by Ankush Bajaj:
Buy: BHEL Ltd (current price: ₹260)
Why it’s recommended: On the daily chart, the stock has closed above ₹255 level, which was the 50% retracement of the recent high and low, indicating strength and potential for further upside. Additionally, on the lower time frames, the stock has given a triangle breakout, which confirms the bullish setup and suggests a potential rally in the stock.
Key metrics: Resistance level: ₹273– ₹275 (short-term target zone)
Support level: ₹255 (pattern invalidation level)
Pattern: 50% Fibonacci retracement breakout on daily chart; Triangle breakout on lower time frame
RSI: Bullish on both daily and lower time frames, confirming the breakout
Technical analysis: The stock has broken out of two bullish patterns, showing strong price action and follow-through buying. The RSI adds further confirmation to the bullish structure. Sustaining above ₹260 increases the probability of reaching the target zone.
Read this | BHEL rides thermal power revival—can it keep up with demand?
Risk factors: Breakdown below ₹255 may invalidate the breakout. Broader market weakness or negative sentiment may impact performance.
Buy at: ₹260
Target price: ₹273– ₹275 in 4–5 days
Stop loss: ₹255
Buy: DIXON Ltd (current price: ₹15,090)
Why it’s recommended: After the recent bullish move, the stock witnessed some decline and is now trading at a crucial make-or-break level near ₹15,000. In the short term, the stock is forming a triangle pattern, and a breakout is expected above the ₹15,140 level. This breakout would confirm a bullish trend and indicate a potential rally in the stock.
Key metrics: Resistance level: ₹15,440– ₹15,550 (short-term target zone)
Support level: ₹14,900 (pattern invalidation level)
Pattern: Triangle formation on short-term chart with potential breakout above ₹15,140
RSI: Neutral to bullish; poised to turn strong upon breakout confirmation
Technical analysis: The stock is consolidating near a key level with decreasing volume, indicating a possible breakout setup. A move above ₹15,140 would validate the triangle breakout and signal renewed buying interest. Sustaining above ₹15,090 improves the chances of reaching the target zone.
Risk factors: Breakdown below ₹14,900 may invalidate the breakout. Market volatility or sector-specific weakness could impact the performance.
Buy at: ₹15,090
Target price: ₹15,440– ₹15,550 in 4–5 days
Stop loss: ₹14,900
Buy: ITC Ltd (current price: ₹433.90)
Why it’s recommended: On the daily chart, the stock is showing signs of reversal after a recent consolidation phase. It has taken strong support near ₹429 multiple times, forming a base. Currently, it is trading near a breakout level, and a move above ₹434 could trigger momentum. The setup suggests a short-term bullish move towards the target zone.
Key metrics: Resistance level: ₹445– ₹448 (short-term target zone)
Support level: ₹429 (pattern invalidation level)
Pattern: Base formation with breakout potential on daily chart
RSI: Trending upward, indicating improving momentum and potential strength
Technical analysis: The stock has respected the ₹429 support zone and is now trading close to breakout territory. RSI and price action both hint at a positive move. Sustaining above ₹433.90 increases the probability of reaching the target zone.
Read this | ITC expects consumption uptick on rains, rate cuts
Risk factors: Breakdown below ₹429 may invalidate the bullish setup. Broader market weakness or sector-specific pressure could affect performance.
Buy at: ₹433.90
Target price: ₹445– ₹448 in 4–5 days
Stop loss: ₹429
Market wrap for Tuesday, 27 May
Indian markets closed in the red on Tuesday, 27 May, after a choppy session marked by indecision and profit booking. The Nifty 50 briefly crossed the psychological 25,000 mark in early trade but failed to hold gains as selling pressure set in.
The Nifty 50 ended 174.95 points, or 0.70%, lower at 24,826.20, while the BSE Sensex slipped 624.82 points, or 0.76%, to close at 81,551.63. The Bank Nifty also declined, falling 219.20 points, or 0.39%, to 55,352.80.
Sectoral trends were mixed. PSU Bank led the gainers with a 0.26% rise, followed by the Realty index (up 0.24%) and Pharma (up 0.11%). Broader sentiment, however, remained subdued.
Among the top performers, Jio Financial Services rose 3.43%, extending its recent uptrend. IndusInd Bank gained 2.57%, and Trent added 0.85% on stock-specific buying interest.
Nifty technical analysis: Daily & hourly
The Nifty opened at 24,956.65 and faced consistent selling pressure through the session, closing 0.70% lower at 24,826.20. The index hit an intraday high of 25,062.90 and a low of 24,704, ending below the previous day’s low—a sign of short-term weakness. The inability to hold above 25,000 and the rejection near 25,100 confirm this zone as a key resistance level in the near term.
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On the daily chart, the Nifty continues to trade above its 20-day moving average (24,626) and 40-day exponential moving average (24,194), indicating the broader uptrend remains intact. However, momentum indicators suggest fatigue. The MACD has turned negative, while the RSI has slipped to 57 with a downward slope, pointing to weakening momentum.
The hourly setup has turned negative, with the Nifty now trading below the 20-hour moving average (24,901) and marginally under the 40-hour exponential moving average (24,840). Both averages are flattening, and the hourly MACD has flashed a sell signal, reinforcing the intraday bearish tone. A close near the lower end of the day’s range and below key hourly averages suggests further downside risk if 24,700 is breached.
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On the derivatives front, the highest open interest on the call side remains at the 25,000 strike—underscoring strong resistance—while the 24,500 put holds the maximum OI, indicating near-term support. The setup suggests a range-bound to mildly bearish bias unless the index reclaims and sustains above 25,000.
Read this | Four fast-growing space stocks to add to your watchlist
Given the current technical and derivative structure, 24,700 remains a key level to watch. A break below it could accelerate selling, while a rebound may help preserve the broader uptrend.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
