Broad-based buying in auto, metal, IT, energy, and realty sectors supported the rally. Positive global cues and optimism around US-China trade talks also boosted sentiment, while the weekly F&O expiry added momentum to a strong late-session rally.
Two stock recommendations by MarketSmith India for 16 May:
Buy: Shilpa Medicare Ltd (current price: ₹ 714.9)
● Why it’s recommended: Strategic focus on oncology and biologics, strong financial performance
● Key metrics: P/E: 76.92, 52-week high: ₹ 959.50, volume: ₹ 26.79 crore
● Technical analysis: Holding its 200 DMA for the past three days
● Risk factors: Regulatory compliance risks, debt, and liquidity risks
● Buy at: ₹ 714.9
● Target price: ₹ 825 in three months
● Stop loss: ₹ 660
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Buy: Maruti Suzuki India Ltd (current price: ₹ 12,952)
● Why it’s recommended: Market leadership, brand equity, strong rural & entry-level demand
● Key metrics: P/E: 27.94, 52-week high: ₹ 13,860, volume: ₹ 719.71 crore
● Technical analysis: Bullish flag pattern breakout
● Risk factors: Delayed EV strategy, margin pressure from input costs
● Buy at: ₹ 12,952
● Target price: ₹ 14,200 in three months
● Stop loss: ₹ 12,350
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How Nifty 50 performed on 15 May
The benchmark Nifty 50 reclaimed the key psychological level of 25,000 for the first time since October 2024, rallying nearly 400 points on the back of strong buying interest in the metal, auto, IT, and realty stocks. Investor sentiment also improved, supported by positive global cues and growing optimism around a potential India-US trade agreement.
The session began on a muted note, with Nifty opening below 24,700 and experiencing volatility during the first half. However, strong momentum in the latter part of the session propelled the index sharply higher, helping it close above 25,000. Market breadth remained robust, with the advance-decline ratio at 5:2, indicating broad-based participation across sectors.
From a technical standpoint, the index is trading well above all its key moving averages, signalling a firmly established uptrend. Bullish momentum remains strong across both daily and weekly timeframes. The relative strength index (RSI) has turned upward and is currently hovering around 66, reinforcing the positive bias.
Additionally, the moving average convergence divergence (MACD) continues to trade in positive territory with a bullish crossover, further confirming the strength and sustainability of the ongoing upward momentum.
According to O’Neil’s methodology of market direction, Nifty50 transitioned from a “Rally Attempt” to a “Confirmed Uptrend”.
Nifty50 extended its bullish momentum on Thursday, decisively surpassing the psychological milestone of 25,000. Market sentiment remains broadly positive, and the index is expected to maintain its upward trajectory in the near term. Immediate resistance is seen around 25,200. A sustained move above this zone could potentially drive the index toward 25,700–25,800. On the downside, immediate support is placed at 24,800–24,700, which is likely to act as a cushion in case of any pullback.
How did Bank Nifty perform?
The trading session for Bank Nifty commenced on a positive note but experienced intermittent volatility, briefly dipping into negative territory. Subsequently, renewed buying interest propelled the index to gain approximately 554 points, or 1.01%. Bank Nifty opened at 54,853.70, traded within a range of 54,442.30–55,490.55, and closed at 55,355.60, forming a bullish candle on the daily chart.
Today, the index retested its 21-day moving average and successfully closed above this level, maintaining a positive bias.
Bank Nifty index remains positioned above all its key moving averages on the daily chart, indicating a sustained bullish trend. Although the RSI has exhibited a slight downward movement, it continues to operate within the bullish zone, currently around 61. Concurrently, the MACD displays a negative crossover yet remains above the zero line, suggesting a mixed short-term momentum.
According to O’Neil’s methodology of market direction, Nifty Bank transitioned from an “Uptrend Under Pressure” to a “Confirmed Uptrend”.
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Immediate resistance is observed near 56,000. A decisive break above this threshold could trigger the next phase of the rally, potentially driving the index toward the 60,000 mark in the coming weeks and months. On the downside, immediate support is positioned around the 21-day moving average near 54,70.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Source:https://www.livemint.com/market/stock-market-news/best-stock-recommendations-today-marketsmith-indias-top-picks-16-may-sensex-nifty-bank-nifty-shilpa-medicare-maruti-11747311810883.html