Essential Stock Recommendations for Investors: Today’s Top Picks for May 23
Indian equity markets are currently facing a downward trend, influenced by weak global cues and profit-taking in key sectors. According to Bajaj Broking Research, NMDC and Polyplex Corp have emerged as the top stock picks for today. The report also provides insights on the Nifty and Bank Nifty indices, highlighting the cautious investor sentiment following a recent downgrade of the U.S. government’s credit outlook by Moody’s.
Market Overview
The Indian equity markets have shown a downward bias this week, primarily due to negative global signals and profit-taking activities. Investor sentiment has turned cautious after Moody’s downgraded the U.S. government’s credit outlook, which resulted in a spike in U.S. Treasury yields. This development triggered a broad-based sell-off across global equity markets, with Indian benchmarks reflecting this weakness. The India VIX, a measure of market volatility, rose by over 5% during the week, indicating increased risk aversion among market participants.
On the technical front, the Nifty index reached a high of 25,116 last week. However, profit-booking at elevated levels over the past few sessions has led to a retracement, with the index currently hovering around the 24,600 mark. Analysts expect the Nifty to enter a consolidation phase within the 24,350 to 25,000 range, which could help alleviate the overbought conditions indicated by the daily stochastic oscillator. Crucial support is identified at the 24,350 to 24,400 zone, while resistance is anticipated around the 25,000 to 25,200 levels.
Bank Nifty Analysis
The Bank Nifty index has been consolidating within a broad range of 56,000 to 53,500 for the past five weeks. A key observation on the daily chart indicates that the index has been trading within a downward-sloping channel for the last 21 sessions. During this period, it has retraced only 38.2% of the prior nine-session rally, suggesting a shallow pullback that indicates underlying strength and the potential for a higher bottom formation.
Market analysts expect the Bank Nifty to continue its consolidation within the 53,500 to 56,000 range. They recommend using dips as buying opportunities, with key support identified at the 53,000 to 53,500 levels. This support zone aligns with the lower band of the last five weeks’ range, key retracement levels, and the 50-day exponential moving average (EMA).
Stock Recommendations
Bajaj Broking Research has identified NMDC and Polyplex Corp as the top stock picks for investors today. For NMDC, the recommendation is to buy within the range of Rs 70 to 72, with a target price of Rs 78 and a stop-loss set at Rs 66. The stock is on the verge of breaking out of a two-month consolidation range, signaling a potential resumption of upward movement. Analysts note that NMDC is currently sustaining above its short- and medium-term moving averages, indicating strong support at lower levels.
For Polyplex Corp, investors are advised to buy in the range of Rs 1,330 to 1,365, with a target price of Rs 1,478 and a stop-loss at Rs 1,260. The stock has recently generated a breakout above a bullish Cup & Handle formation, supported by strong volume, which suggests a continuation of the upward trend. Analysts expect Polyplex Corp to form higher highs and higher lows in both daily and weekly charts, reinforcing the positive bias in the stock.
Disclaimer: The opinions, analyses, and recommendations expressed on this website are those of the contributors or sources cited and do not necessarily reflect the views of Observervoice. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
