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Stock Market Today: Key Insights for Nifty 50, India VIX, and Five Stock Recommendations for May 22

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By SK_INSIGHTMEDIA

Nifty 50

Nifty 50, India VIX, and top stock picks for May 22. Find detailed technical analysis and trade setup for a successful trading day.

Overview of Indian Stock Market Performance

On Tuesday, May 21st, the Indian stock market experienced cautious trading, with its major indices, Sensex and Nifty 50, showing minimal movements. The Sensex closed with a slight dip of 53 points, or 0.07 percent, at Nifty 50 73,953.31. Meanwhile, the Nifty 50 recorded a small increase of 27 points, or 0.12 percent, ending the day at 22,529.05.

Significantly, data from the BSE website indicated that the market capitalization of companies listed on the BSE surpassed the $5 trillion mark for the first time this year, increasing by over $633 billion since the beginning of the year.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked, “The $5 trillion market cap for BSE listed companies is a major milestone that reflects the sustained momentum of the Indian stock market. It is important to understand that this landmark has been achieved when the market is almost flat, trading in a range. This means the contribution to the up move in market cap has come from the broader market. PSUs have contributed significantly to this achievement.”

Trade Setup for Wednesday

Nifty Outlook

Rupak De, Senior Technical Analyst at LKP Securities, provided his insights on the Nifty, stating, “The index remained within the range of 22,400 and 22,600. Strong put writing at 22,400 and 22,500 might provide support to the Nifty. On the higher end, a decisive move above 22,600 might induce a rally towards 22,800 in the near term. Till then, the index might continue consolidating as long as it remains within the range of 22,400 to 22,600.”

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, discussed the Bank Nifty index, saying, “The Bank Nifty index failed to surpass the mark of 48,400, where the 20DMA is placed. A break above this level will lead to a fresh move on the upside. The lower-end support is placed at 48,000, where the highest open interest is built up on the put side. The index needs to break these levels decisively on either side to have trending moves in the near term.”

Stock Recommendations for May 22

Expert Picks from Sumeet Bagadia, Choice Broking

  1. Vedanta Ltd
  • Buy at: ₹491.7
  • Target: ₹515
  • Stop Loss: ₹475 Analysis: Vedanta Ltd shows a promising outlook with a higher high and higher low pattern. The stock has breached the neckline, setting a new weekly high, suggesting potential for further upward movement. Increased trading volume and the stock trading above its 20-day, 50-day, and 200-day EMAs reinforce a bullish trend. The Volume Weighted Average Price (VWAP) is also rising, supporting a positive trajectory.
  1. Tech Mahindra Ltd
  • Buy at: ₹1,323.90
  • Target: ₹1,415
  • Stop Loss: ₹1,280 Analysis: Tech Mahindra has bounced back from the support level of ₹1,280, aligning with its 20-Day EMA. Currently trading at ₹1,323.90, the stock has broken above the ₹1,320 level, indicating strong momentum. With the stock trading above its 20, 50, and 200-day moving averages and an RSI of 64.53, the outlook is bullish. Investors should watch for a break below ₹1,280, which could negate the positive outlook.

Expert Picks from Shiju Koothupalakkal, Prabhudas Lilladher

  1. Railtel Corporation of India Ltd
  • Buy at: ₹433
  • Target: ₹455
  • Stop Loss: ₹422 Analysis: Railtel has shown a bullish breakout above the previous peak zone of ₹414, supported by a rising RSI. The positive candle formation indicates further potential upside. The initial target is set at ₹455 with a stop loss at ₹422.
  1. UCO Bank
  • Buy at: ₹56.55
  • Target: ₹60
  • Stop Loss: ₹55 Analysis: After a period of consolidation, UCO Bank has formed a bullish candle on the daily chart, moving past the 50EMA level of ₹53.75. The RSI indicates strength and potential for further upward movement. The stock is recommended for an initial target of ₹60, with a stop loss at ₹55.
  1. Madras Fertilizers Ltd
  • Buy at: ₹91.40
  • Target: ₹96
  • Stop Loss: ₹89 Analysis: Madras Fertilizers has formed a higher low on the daily chart and moved past the 50EMA level at ₹90.20, indicating a strengthened trend. The RSI shows upside potential, making the stock attractive for an initial target of ₹96 with a stop loss at ₹89.

ALSO READ: BHARAT ELECTRONICS SHARE PRICE SOARS OVER 9% TO NEW RECORD HIGH ON STELLAR Q4 EARNINGS

Conclusion

As we navigate the complexities of the stock market, understanding key indices and expert stock recommendations can significantly enhance investment strategies. The insights provided for Nifty, Bank Nifty, and specific stock picks by seasoned analysts offer valuable guidance for traders and investors. Staying informed and making data-driven decisions can help capitalize on market opportunities and mitigate risks.

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