Buy or sell stocks: Benchmark indices Sensex and Nifty 50 closed marginally higher on Monday, May 18, recovering sharply from the day’s lows amid buying interest in select heavyweight stocks.
After plunging over 1,000 points during intraday trade, the Sensex staged a strong comeback, rallying more than 1,100 points from the day’s bottom to end in positive territory. Similarly, the Nifty 50, which hit an intraday low of 23,317, recovered over 300 points from its lowest level of the session.
The ended 77 points, or 0.10%, higher at 75,315.04, while the Nifty 50 edged up 6 points, or 0.03%, to settle at 23,649.95.
Stock market today
Nifty 50
On Monday, the opened with a sharp gap-down at 23,482.20, reflecting weak sentiment at the start of the session. Selling pressure persisted in the early trades, dragging the index to an intraday low of 23,317.10 within the first hour. However, strong buying interest emerged from lower levels thereafter, helping the index recover sharply through the session. The recovery extended into the latter half, pushing the index to an intraday high of 23,695.65. The index eventually settled at 23,649.95, registering a marginal gain of 6.45 points or 0.03% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a bullish candlestick pattern after filling the opening gap-down indicates buying interest emerging at lower levels and improving sentiment from intraday lows.
“From a technical perspective, immediate support is placed in the 23,300–23,400 range, while resistance is observed between 23,900 and 24,000 levels. The Relative Strength Index (RSI) stands at 45.26, indicating improving momentum though the index still trades below the stronger bullish zone. In the derivatives segment, notable call writing was seen at the 23,700 strike, followed by 23,800, while significant put writing was observed at 23,500 and 23,400 levels, indicating near-term support zones within a broader trading range,” Bagadia said.
Bank Nifty
The Bank Nifty index opened with a sharp gap-down at 53,282.15 and remained under pressure during the first half, registering its intraday low of 52,783.45. However, strong buying interest emerged in the second half, helping the index recover sharply from lower levels and climb towards its intraday high of 53,667.55. The index eventually settled at 53,537.00, declining by 173.35 points or 0.32% for the day.
Bagadia added that on the daily timeframe, the formation of a bullish hammer-like candlestick pattern reflects buying support emerging from lower levels and indicates the possibility of a short-term recovery if follow-through buying continues.
“From a technical standpoint, immediate support is placed in the 52,800–52,900 range, while resistance is seen in the 54,200–54,300 zone. The Relative Strength Index (RSI) stands at 40.69, indicating weak momentum though some recovery was visible from oversold intraday levels. Sustaining above immediate support levels will be important for maintaining the recovery structure,” he said.
Bagadia further advised traders to closely monitor key resistance zones, as sustained strength above these levels will be crucial to confirm continuation of the recovery momentum, as recent price action suggests a highly volatile session with both benchmark indices recovering sharply after opening on a weak note. The emergence of buying interest from lower levels and formation of bullish recovery candles indicate that bulls are attempting to regain control despite prevailing caution in the broader market.
Sumeet Bagadia’s stocks to buy
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five on Tuesday, 19 May: Knowledge Marine & Engineering Works, Shipping Corporation of India, PB Fintech, Kingfa Science and Technolgy (India), and Dr. Lal PathLabs.
1] Knowledge Marine & Engineering Works: Buy at ₹2065, Target ₹2250, Stop Loss ₹1948
Knowledge Marine & Engineering Works share price is showing strong bullish momentum after recently touching a fresh all-time high near the 2285 zone. After the sharp rally, the stock witnessed a healthy pullback and successfully took support around its 20-day EMA near 1948, indicating that buyers are still actively defending lower levels. In the latest trading session, the stock bounced sharply with gains of more than 4%, signalling renewed buying interest after the correction phase.
The overall price structure remains positive as the stock continues to trade above all its major moving averages, reflecting strength in the broader trend. If momentum sustains above the support zone, the stock may gradually head towards its previous all-time high resistance near 2250. On the downside, 1948 remains a crucial support and stop-loss level for positional traders.
2] Shipping Corporation of India: Buy at ₹344, Target ₹370, Stop Loss ₹325
Shipping Corporation of India share price is witnessing a strong uptrend on the daily chart and continues to maintain a consistent higher high and higher low formation, which reflects sustained bullish momentum in the stock. The stock is comfortably trading above its key moving averages, signalling strength in the broader trend structure. Recent price action indicates that buyers are actively participating on every dip, keeping the bullish setup intact.
The stock has also shown strong recovery from lower levels with healthy volume participation, which adds confidence to the ongoing upward move. As long as SCI sustains above the 325 support zone, the trend is likely to remain positive. A move above 344 may further strengthen momentum and open the gates for a rally towards 370 in the near term. Traders should continue to monitor volume activity for confirmation of the breakout continuation.
3] PB Fintech: Buy at ₹1748, Target ₹1900, Stop Loss ₹1650
PB Fintech share price has shown a strong technical recovery after witnessing a decisive breakout above its important 200-day EMA levels, signalling a possible trend reversal on the daily chart. The stock has bounced sharply from lower levels and also reclaimed its 50-day EMA, which earlier acted as a key swing support zone. This recovery indicates improving bullish sentiment along with renewed buying interest in the counter.
The price structure now suggests the formation of a higher base, which may support further upside momentum in the coming sessions. The breakout near the 1650 zone has become an important support area and also serves as a crucial stop-loss level for positional traders. If the stock sustains above 1748, it may gradually move towards the 1900 resistance zone. Rising momentum and improving trend structure continue to favour the bulls.
4] Kingfa Science and Technolgy (India): Buy at ₹5303, Target ₹5700, Stop Loss ₹5035
Kingfa Science and Technolgy (India) share price continues to display strong bullish price action as the stock maintains a clear higher high and higher low formation on the daily timeframe. The stock is trading firmly above all its major moving averages, reflecting strong trend strength and positive market structure. After a steady consolidation phase near the 4700–4900 zone, the stock has witnessed fresh momentum buying and is now trading very close to its all-time high levels.
This breakout move indicates growing investor confidence and sustained buying participation at higher levels. The recent rally also suggests that the stock is preparing for another potential upward expansion if momentum remains intact. As long as KINGFA holds above the important support zone near 5035, the bullish trend is expected to continue. A sustained move above 5300 could trigger a fresh rally towards the 5700 zone.
5] Dr. Lal PathLabs: Buy at ₹1646, Target ₹1777, Stop Loss ₹1575
Dr. Lal PathLabs share price has recently witnessed a strong bullish breakout supported by the formation of a bullish marubozu candlestick pattern on the daily chart, indicating aggressive buying interest and strong price acceptance at higher levels. The stock has shown a sharp recovery from lower zones and is now trading above its important short-term moving averages, which reflects improving momentum in the overall trend.
The strong bullish candle with minimal shadows highlights the dominance of buyers throughout the trading session and suggests that sentiment has turned positive in the near term. Volume activity has also improved alongside the breakout, adding confirmation to the ongoing strength in the counter. As long as the stock sustains above the crucial support zone near 1575, the bullish setup remains intact. A sustained move above 1646 may lead the stock towards the 1777 resistance target in the coming sessions.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.