Buy or sell stocks: Domestic equity benchmarks ended sharply lower on Friday, May 29, after a late-session sell-off wiped out earlier gains. The Sensex and Nifty 50 traded in a narrow range for most of the day amid uncertainty over a potential US-Iran agreement, but heavy profit-booking in the final hour dragged the indices sharply lower.
At close, the or 1.44%, while the Nifty 50 ended 359 points, or 1.50%, lower at 23,547.75.
The sharp decline was largely attributed to profit-taking ahead of the weekend as reports suggested the US and Iran had reached an agreement to extend their ceasefire and reopen shipping through the Strait of Hormuz, subject to approval from US President Donald Trump. Reuters reported that the understanding was reached on Thursday.
Sentiment was also hit by a downward revision in the monsoon forecast by the India Meteorological Department (IMD), which now expects rainfall at 90% of the long-period average (LPA). Concerns over deficient rainfall and the increasing likelihood of an El Niño weather pattern have raised fears of higher food inflation in the months ahead.
Nifty Outlook
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that on the daily timeframe, the formation of a bearish candlestick pattern indicates sustained selling pressure throughout the session. The close near the intraday low reflects weakness in short-term momentum and suggests that sellers remained dominant across the day, he added.
“From a perspective, immediate support is placed in the 23,200–23,250 range, while resistance is observed between 23,750 and 23,800 levels. The Relative Strength Index (RSI) stands at 43.37, indicating weakening momentum and a cautious undertone in the near term,” predicted the expert.
Moreover, he pointed out that the volatility index, , surged by 8.03% to close at 16.18, suggesting rising volatility and increased nervousness among market participants. 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 23,300 levels, indicating immediate support near lower zones while resistance remains firm at higher strikes.
Bank Nifty Outlook
According to the Choice expert, from a technical standpoint, immediate support is placed in the 53,900–54,000 range, while resistance is seen in the 54,800–55,000 zone.
He further noted that the Relative Strength Index () stands at 46.91, indicating weakening momentum though the index still trades near the neutral zone. Sustaining above immediate support levels will remain important to avoid further downside pressure in the near term.
“The recent price action suggests a highly volatile and weak trading session with both benchmark indices witnessing sharp selling pressure after failing to sustain gains at higher levels. Traders are advised to closely monitor immediate support zones, as sustained weakness below these levels could trigger further downside pressure, while any recovery would require strong follow-through buying near lower levels,” he further suggested.
Sumeet Bagadia’s stock recommendations today
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks: L&T, Asian Paints and HCL Tech.
Buy L&T in cash at 4,077; SL at 3,900; TGT at 4,430.
Larsen & Toubro is showing strong signs of a bullish reversal after a sharp correction from its recent highs near the 4,440 zone. The stock has successfully held above the critical support band of 3,850–3,900 and is now attempting a meaningful recovery, currently trading around the 4,077 level. The recent price action reflects a classic falling wedge breakout, with the stock reclaiming key moving average levels in quick succession.
From a technical perspective, the stock has crossed above its short-term moving averages, while the 20-day and 50-day EMAs are now converging and providing a dynamic support cushion to the ongoing upmove. The RSI is hovering above the 60 mark, reflecting improving momentum and building bullish strength. Additionally, the recovery from lower levels accompanied by increasing participation suggests fresh accumulation by stronger hands.
The stock has already delivered a decisive breakout above the falling trendline resistance around the 4,000 zone, and is now clearly marching towards the 4,430 target with strengthening momentum. Traders may consider buying at the current market price with a strict stop loss at 3,900 on a closing basis. Any decisive breach below this level would invalidate the bullish setup and weaken the ongoing recovery structure.
Buy ASIANPAINT in Cash 2672; SL 2550; TGT 2915
Asian Paints is displaying a compelling trend reversal after a prolonged and painful downtrend that had dragged the stock to a multi-year low of 2,115. Since that decisive bottom, the stock has been consistently forming higher highs and higher lows, reflecting a clear shift in market sentiment from bearish to bullish. Currently trading around the 2,672 level, the stock is comfortably riding an upward sloping trendline, using it as a dynamic support base for its ongoing recovery.
From a technical standpoint, a bullish EMA crossover has been confirmed on the daily chart, with shorter-term moving averages crossing above longer-term ones — a classic signal of strengthening upward momentum. The RSI is currently placed at 67.21, well above the midpoint, indicating robust buying interest without yet entering overbought territory, leaving ample room for further upside.
Rising volumes during the recent up-move further signal accumulation at lower levels, with stronger hands building positions gradually. The overall price structure remains healthy, and the broader trend continues to favour buyers at every dip.
Traders may consider buying at the current market price with a strict stop loss at 2,550 on a closing basis, targeting 2,915 in the coming sessions. Any decisive breach below the stop loss level would invalidate the bullish setup in the near term.
Buy HCLTECH in Cash at 1184; SL at 1130; TGT at 1285
HCL Technologies is showing early but encouraging signs of a trend reversal after enduring prolonged selling pressure that pushed the stock to a multi-month low of 1,103.40. The stock has recently delivered a meaningful breakout above a sideways trendline resistance that had been capping upside for several weeks, and has now managed a decisive close above it — a positive development that signals a potential shift in momentum.
From a technical standpoint, the breakout is backed by improving price structure, with the stock gradually stabilizing after a sharp decline from higher levels. The RSI, currently at 43.06, is showing a clear reversal from deeply oversold territory, suggesting that the worst of the selling pressure may be behind and that buying interest is beginning to return at lower levels. Such RSI recoveries from oversold zones have historically preceded meaningful price recoveries.
The overall setup points towards early accumulation, with the stock attempting to carve out a base near current levels. Traders may consider buying at the current market price of around 1,184 with a strict stop loss at 1,130 on a closing basis, targeting 1,285 in the coming sessions. A breach below the stop loss level would invalidate the bullish setup in the near term.
Disclaimer: The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.