Stock Market News
The Sensex and Nifty 50 started Tuesday’s session with minor gains amid mixed global cues. Buying interest was seen in Reliance Industries and HDFC Bank, and the monsoon outlook was positive.
- Sensex: Opened up by 194.90 points (0.26%) at 75,585.40.
- Nifty 50: Started at 22,977.15, up 44.70 points (0.19%).
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, predicts that Nifty 50 will continue its upward trend. However, important events like the GDP report, exit poll results, and May F&O expiration could impact the market. A good monsoon forecast is expected to boost economic growth and agricultural productivity.
Market Review and Outlook – Ruchit Jain
Ruchit Jain, Lead Research Analyst at 5paisa, noted that the markets started the week positively with Nifty 50 rallying past 23,100. However, profit booking towards the end of the session led to Nifty 50 closing below 22,950 with a slight loss.
- Nifty 50 Resistance: Faced at the rising trendline, leading to profit booking.
- Banking Sector: Continued to outperform.
- India VIX: Rallied higher and tested the 26 level, expected to stay high till election results are out.
The daily RSI remains positive, but lower timeframe charts indicate a possible pullback from the overbought zone, suggesting a correction within the uptrend. Volatility is expected to remain high due to upcoming events.
Share Market Tips Today
Jain advises traders to adopt a “buy on dip” approach, entering long positions near support levels for favorable risk-reward.
- Immediate Support for Nifty 50: Between 22,800-22,750, with strong support around 22,600.
- Trendline Resistance: Around 22,100. If surpassed, potential rally towards 22,450-22,500 in the short term.
Stocks in Focus Today
Indian Hotels Company Ltd (IHCL)
Jain recommends buying Indian Hotels Company Ltd:
- Recent Performance: The stock went through a correction but found support around its 100-day Exponential Moving Average (DEMA).
- Current Trend: The stock is moving higher with good volumes, and the RSI indicates positive momentum.
- Buy Range: ₹580-575
- Target: ₹615
- Stoploss: Below ₹560
Cholamandalam Investment and Finance Company Ltd
Jain also recommends buying Cholamandalam Investment and Finance Company Ltd:
- Recent Performance: The stock had a sharp up move in late April and has been consolidating in a range.
- Current Trend: Formation of a ‘Bullish Pennant’ pattern on the daily chart, trading around its 20-day Exponential Moving Average (DEMA) support.
- Buy Range: ₹1,270-1,260
- Target: ₹1,360-1,380
- Stoploss: Below ₹1,215
Summary
In summary, Ruchit Jain recommends buying Indian Hotels Company Ltd and Cholamandalam Investment and Finance Company Ltd based on their current trends and positive momentum indicators. Traders should look for buying opportunities near support levels with specific target prices and stoploss points.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
