On Thursday, the Indian stock market indices closed almost with strong gains led by buying across the board with the benchmark Nifty 50 reclaiming 22,400 level.
The Sensex rallied 676.69 points, or 0.93%, to close at 73,663.72, while the Nifty 50 ended 203.30 points, or 0.92%, higher at 22,403.85. The Bank Nifty surged 290 points to settle at 47,977.
Here’s technical outlook for Nifty 50 and Bank Nifty today:
Nifty 50 Outlook
Nifty 50 formed a bullish candle on daily and weekly scale with long lower shadow which indicates support bases buying in the market. It managed to reclaim its 50 DEMA and formed the higher base in the market. Now it has to hold above 22,350 zones for an up move towards 22,600 then 22,795 zones whereas supports are placed at 22,222 then 22,050 zones, said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.
He believes India VIX needs to fall below 16-18 zones for stability and smoother ride in the market.
Also Read: Nifty 50, Sensex today: What to expect from Indian stock market in trade on May 17
On the weekly front, Maximum Call OI (Open Interest) is at 22,500 then 22,600 strike while Maximum Put OI is at 22,000 then 22,200 strike. Minor Call writing is seen at 22,500 then 22,400 strike while Put writing is seen at 22,300 then 22,200 strike. Option data suggests a broader trading range in between 21,800 to 22,800 zones while an immediate range between 22,200 to 22,600 levels, Taparia said.
Bank Nifty Outlook
The Bank Nifty index managed to hold its rising support trend line and flirted near its 50 DEMA. It managed to hold support near 47,000 zones and reclaimed its 50 DEMA.
“Bank Nifty formed a Pin bar pattern on daily scale with long lower shadow as buying is visible at lower zones. Now it has to continue to hold above 47,777 zones for a bounce towards 48,250 then 48,500 zones while on the downside support is seen at 47,777 then 47,500 levels,” Taparia said.
Chandan Taparia has recommended three stocks to buy today, May 17. These stocks include Bharti Airtel, Escorts Kubota and Power Finance Corporation (PFC). Here are the three stocks to buy today:
Bharti Airtel | Buy | TP: ₹1,400 | Stop Loss: ₹1,315
Bharti Airtel stock is in overall uptrend and every small decline is being bought into. It has given a box breakout on the daily chart and inched higher. It has formed a bullish candle on a daily scale and the base is gradually shifting higher. Momentum indicator Relative Strength Index (RSI) is positively placed which may support the ongoing up move.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 17
PFC | Buy | TP: ₹475 | Stop Loss: ₹444
PFC share price has taken support at ₹400 zones and started to form higher high – higher lows from the last two trading sessions. Major trend of the stock is positive and recent corrective moves provide fresh buying opportunities with better risk reward ratio.
Escorts Kubota | Buy | TP: ₹3,920 | Stop Loss: ₹3,760
Escorts shares have been making higher top – higher bottom on weekly scale and heading to new lifetime high zones. It gave a major breakout on a monthly scale with the formation of the Pole and Flag pattern which has a bullish implication.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 17 May 2024, 08:43 AM IST