On Monday, May 27, both the Nifty 50 and Sensex hit new highs but later dropped slightly due to profit-taking and mixed global signals. The Sensex reached 76,009.68, and the Nifty 50 hit 23,110.80, but they couldn’t maintain these levels and saw minor declines.
Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, noted, “The Nifty index opened strong above 23,000 and hit a new high of 23,110. Profit booking in the second half of the session caused it to give up intraday gains. It formed a small bearish candle and has been making higher highs for the last eleven sessions. It needs to stay above 22,900 for an up move to 23,200 and 23,350, with support at 22,850 and 22,700.”
India VIX, which measures market volatility, fell by 6.82% from 21.71 to 23.19. It briefly spiked above 26 during the session. For stability, VIX needs to drop below 16-18.
In options trading, the highest call open interest (OI) is at 23,500 and then 23,000 strikes, while the highest put OI is at 23,000 and then 22,700 strikes. Call writing is seen at 23,200 and 23,100 strikes, and minor put writing at 23,000 and 22,850 strikes. This suggests a broader trading range of 22,500 to 23,500 and an immediate range of 22,800 to 23,200.
Bank Nifty
The Bank Nifty Index opened positively and reached 49,688 in the first half but was highly volatile in a 500-point range, ending with a gain of about 310 points. Taparia added, “It formed a small bullish candle and has been making higher highs and lows for three sessions. It needs to stay above 49,000 for an up move to 49,500 and 50,000, with support at 49,000 and 48,750.”
Stocks to Buy on May 28
Chandan Taparia recommended three stocks for May 28:
1. Hindustan Petroleum (HPCL)
- Buy: Target Price: ₹585.8 | Stop Loss: ₹542
- Reason: HPCL broke out of a range on the daily chart and closed above it, forming a bullish candle. Support levels are rising, and buying in the Oil & Gas sector supports this up move.
2. Axis Bank
- Buy: Target Price: ₹1240 | Stop Loss: ₹1160
- Reason: Axis Bank retested a breakout on the daily chart and moved higher. It’s in a continuous uptrend with rising support levels.
3. PFC
- Buy: Target Price: ₹545 | Stop Loss: ₹500
- Reason: PFC broke out of a triangle pattern on the daily chart with noticeable volumes. The Relative Strength Index (RSI) is positive, indicating bullish momentum.
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