Buy or sell stocks: The Indian stock market closed lower for the third straight session on Monday, May 11, amid broad-based selling pressure triggered by weak global market sentiment.
The 30-share tumbled 1,313 points, or 1.70%, to settle at 76,015.28, while the Nifty 50 declined 1.50% to end at 23,815.85. Meanwhile, the BSE Midcap 150 and Smallcap 250 indices fell 1.26% and 0.96%, respectively.
Stock market today
Nifty 50
On Monday, the Nifty 50 opened with a sharp gap-down at 23,970.10, reflecting weak sentiment at the start of the session. The index witnessed selling pressure in the first half of the session, although in the start of the second half, index witnessed buying interest and hence registered its intraday high of 23,997.45 in the second half, following which selling pressure emerged again and dragged index lower to an intraday low of 23,799.10 during the second half itself. Although intermittent recovery attempts were witnessed, the index failed to sustain at higher levels and eventually closed near the day’s low at 23,815.85, registering a decline of 360.30 points or 1.49% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a strong bearish candlestick pattern indicates sustained selling pressure and weakening market sentiment.
“From a technical perspective, immediate support is placed in the 23,450–23,500 range, while resistance is observed between 24,100 and 24,150 levels. The Relative Strength Index (RSI) stands at 46.11, slipping below the midpoint of 50 and indicating weakening momentum with a bearish undertone. In the derivatives segment, notable call writing was seen at the 23,900 strike, followed by 24,000, while significant put writing was observed at 23,800 and 23,600 levels, indicating near-term support zones with a cautious bias,” Bagadia said.
Bank Nifty
The index opened with a substantial gap-down at 54,832.45 and witnessed selling pressure in the first half, although in the beginning of the second half, buying interest emerged and pushed the index higher to an intraday high of 55,002.45. However, the recovery failed to sustain as fresh selling pressure re-emerged at higher levels, dragging the index back, registering day’s intraday low at 54,360.70. The index eventually settled near day’s low at 54,439.90, declining by 870.65 points or 1.57% for the day.
Bagadia noted that on the daily timeframe, the formation of a bearish candlestick pattern indicates continued weakness and dominance of sellers in the banking space.
“From a technical standpoint, immediate support is placed in the 53,600–53,700 range, while resistance is seen in the 55,000–55,100 zone. The Relative Strength Index (RSI) stands at 43.74, indicating weakening momentum and a negative bias. Sustaining above key support levels will be important to avoid further downside pressure,” he added.
Bagadia further advised to remain selective and closely monitor key support zones, as sustained weakness below these levels could lead to further downside in the near term, as recent price action suggests a highly volatile and weak trading session, with both benchmark indices witnessing sustained selling pressure after gap-down openings.
Sumeet Bagadia’s stocks to buy
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five to buy on Tuesday, 12 May: Acme Solar Holdings, Endurance Technologies, Knowledge Marine & Engineering Works, Narayana Hrudayalaya, and JK Paper.
1] Acme Solar Holdings: Buy at ₹290, Target ₹313, Stop Loss ₹275
Acme Solar Holdings share price is trading around 290, exhibits an encouraging technical setup on the daily chart, showing a resilient recovery from a recent pullback. The stock is finding solid support above its key 50, 100, and 200 days exponential moving averages, signalling a strong underlying bullish continuation. Furthermore, the daily relative strength index is stabilizing near 52, indicating renewed buying interest before the next upward leg. Given this favourable price action, the stock is well positioned to reach an upside target of 313. To manage downside risk, a strict stop loss should be maintained at 275.
2] Endurance Technologies: Buy at ₹2628, Target ₹2800, Stop Loss ₹2500
Endurance Technologies share price is currently trading at 2628, reveals a highly explosive technical setup on the daily chart, marked by a massive gap up breakout from a consolidation base with exceptional volume. The stock aggressively surged past its vital 20, 50, 100, and 200 days exponential moving averages, signalling a powerful shift in underlying bullish momentum. Concurrently, the relative strength index spiked to 70, highlighting intense buying conviction and robust upward strength. Backed by this dominant price action, the equity is exceptionally well positioned to hit an upside target of 2800. To strictly manage risk, a stop loss must be placed at 2500.
3] Knowledge Marine & Engineering Works: Buy at ₹2197, Target ₹2350, Stop Loss ₹2079
Knowledge Marine & Engineering Works share price is currently trading at 2197, exhibits a powerful technical setup on the daily chart following a massive breakout from a prolonged consolidation pattern with exceptional trading volume. The stock trades confidently above its key 20, 50, 100, and 200 days exponential moving averages confirming a robust underlying bullish trend. Furthermore, the daily relative strength index is positioned near 71 indicating accelerating upward momentum and sustained buying interest. Given this favourable price action the stock is perfectly positioned to achieve an upside target of 2350. To effectively manage downside risk a strict stop loss must be maintained at 2079.
4] Narayana Hrudayalaya: Buy at ₹1886, Target ₹2050, Stop Loss ₹1800
Narayana Hrudayalaya is currently trading at 1886, exhibits a strong bullish setup on the daily chart following a decisive breakout from a recent consolidation phase with supportive volume. The price is trending confidently above its key 20, 50, 100, and 200 days exponential moving averages, highlighting a remarkably solid underlying uptrend. Furthermore, the daily relative strength index stands near 63, confirming robust upward momentum and sustained buying interest. Given this favourable price action, the stock is well positioned to reach an upside target of 2050. To manage downside risk, a strict stop loss should be placed at 1800.
5] JK Paper: Buy at ₹391, Target ₹420, Stop Loss ₹378
JK Paper share price is trading around 391, demonstrates a highly encouraging technical setup on the daily chart following a strong breakout from a recent consolidation zone accompanied by supportive volume. The stock is currently trading comfortably above its key 20, 50, 100, and 200 days exponential moving averages, which firmly validates the underlying bullish momentum. Moreover, the daily relative strength index is favourably positioned near 65, reflecting strong buying interest and sustained upward strength. Given this positive price action, the stock is well positioned to reach an upside target of 420. To manage risk, a strict stop loss should be maintained at 378.
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.