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Stock Market Strategies For May 31: Expert Tips And Stock Picks

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By SK_INSIGHTMEDIA

Stock Market

Stock Market Nifty 50, India VIX, and Bank Nifty with our detailed market analysis and trade setup for May 31. Discover expert recommendations on top stocks to buy or sell today, including Dixon Technologies, Ujjivan Small Finance Bank, PNB Housing Finance, BEL.

Market Recap

On Thursday, the Indian stock market witnessed its fifth consecutive decline despite strong performances in banking stocks. The Nifty 50 index dropped by 216 points, closing at 22,488, while the BSE Sensex fell by 617 points to end at 73,885. In contrast, the Bank Nifty index gained 181 points, closing at 48,682. The mid-cap index fell by 1.21%, and the small-cap index decreased by 1.33%.

Trade Setup for Friday

Nifty 50 Outlook

Rupak De, Senior Technical Analyst at LKP Securities, provided his analysis on the Nifty 50 index:

“The Nifty 50 has been volatile with a bearish trend. The short-term outlook is weak as the index has fallen below the critical 21-day Exponential Moving Average (21EMA). Significant call writing at 22,500 indicates that the Nifty must stay above this level to initiate a recovery. Failing to do so could lead to further declines towards 22,300 or 22,100.”

Bank Nifty Outlook

Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta, shared his insights on the Bank Nifty index:

“After opening negatively, the Bank Nifty showed strong recovery, closing at 48,682. The index maintained support at 48,000 and found resistance near 49,000-49,050. Sustaining above 49,050 could push the rally towards 49,690 and 50,000 levels.”

Market Sentiment and India VIX

Siddhartha Khemka, Head of Retail Research at Motilal Oswal, commented on the overall market sentiment:

“Market nervousness is high ahead of the exit poll results on June 1, coupled with weak global cues. Rising bond yields and reduced expectations of a rate cut are pressuring global markets. We anticipate increased volatility as the general election outcome approaches.”

Sumeet Bagadia, Executive Director at Choice Broking, discussed the India VIX Index:

“The India VIX Index has surpassed the resistance at 23 and now faces another at 25. Closing above this level could increase market volatility, potentially driving the index to 28 in the near term.”

Stock Picks for Today

Experts Sumeet Bagadia from Choice Broking and Ganesh Dongre from Anand Rathi recommend the following five stocks:

Sumeet Bagadia’s Stock Picks

Dixon Technologies (Buy)

    • Current Price: ₹9308
    • Target: ₹9900
    • Stop Loss: ₹9000 Dixon Technologies is displaying strong bullish momentum after breaking out above ₹9000, which now serves as a support level. The stock is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, indicating a robust uptrend.

    Ujjivan Small Finance Bank (Buy)

      • Current Price: ₹589.50
      • Target: ₹630
      • Stop Loss: ₹568 Ujjivan Small Finance Bank has formed a Rounding Breakout pattern on the daily chart with increasing trading volume. If the price stays above ₹590, it may reach the short-term target of ₹630. Immediate support levels are at ₹575 and ₹568, offering buy-on-dip opportunities.

      Ganesh Dongre’s Stock Picks

      PNB Housing Finance (Buy)

        • Current Price: ₹748
        • Target: ₹780
        • Stop Loss: ₹720 PNB Housing Finance shows significant support around ₹720 and has reversed at ₹748. The stock is expected to rally to the next resistance level of ₹780. Traders can buy and hold with a stop loss of ₹720.

        BEL (Buy)

          • Current Price: ₹290
          • Target: ₹305
          • Stop Loss: ₹282 BEL has exhibited a bullish reversal pattern and is likely to move towards ₹305 in the short term. With support at ₹282, traders should use a stop loss of ₹282 for this target.

          Escorts (Buy)

            • Current Price: ₹3856
            • Target: ₹4050
            • Stop Loss: ₹3780 Escorts has strong support at ₹3780 and has shown a reversal at ₹3856. The stock is expected to continue its rally towards ₹4050. Traders can buy and hold with a stop loss of ₹3780.

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            Conclusion

            The Indian stock market is facing a mixed outlook with expected volatility due to both domestic and global factors. Banking stocks offer some optimism, but the broader market indices like the Nifty 50 suggest caution. Investors should monitor key support and resistance levels closely, especially with upcoming economic events that could impact market sentiment. Stock Market The recommended stocks provide opportunities for traders to capitalize on specific market movements with defined targets and stop losses.

            Disclaimer: The opinions and suggestions presented in this analysis represent the viewpoints of individual analysts or brokerage firms, and not insightmediahub.com We highly recommend that investors seek guidance from certified experts before making any investment decisions, as market conditions are subject to rapid changes and individual circumstances may differ.

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