Stock Market Recap: Between 25 May and 29 May 2026, Indian equity markets experienced heightened volatility, marked by phases of cautious optimism and sharp profit booking. The week began with subdued sentiment as global cues and domestic uncertainties kept investors on edge, leading to range-bound trade and selective sectoral activity. Midweek sessions saw modest gains in frontline indices, supported by resilience in IT and select defensive stocks, though broader participation remained weak. However, the undertone shifted decisively towards the end of the week, with heavy selling pressure dominating the May 29 session.
The Nifty 50 slipped below the 23,550 mark, while the Sensex plunged over 1,000 points, reflecting aggressive profit booking and risk aversion. Sectoral performance was largely negative, with auto, metal, and oil & gas stocks declining around 2% each, underscoring the drag from cyclical counters. IT remained the lone bright spot, offering limited support amid widespread weakness. Broader indices mirrored the downturn, highlighting the breadth of selling across segments.
Overall, the week underscored investor caution, with fleeting recoveries overshadowed by sharp corrections, leaving benchmarks deep in the red by the close of 29 May.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
LODHA (Cmp ₹938.10)
- Why it’s recommended: Lodha is one of India's largest multinational real estate companies. it develops residential, commercial, and industrial properties. These elements directly dictate profit margins and long-term financial stability. The stock has declined by more than 70% from its highs made a V shaped recovery in the last few weeks and have moved out of the cloud region. With the upcomgin RBI policy we are seeing some interest in rate sensitive counters. The reaction from every swing pullback augurs well look to go long.
- Key metrics:
- P/E: 32.10,
- 52-week high: ₹1531,
- Volume: 9.14M
- Technical analysis: Support at ₹850, resistance at ₹1085.
- Risk factors: Reliance on unsecured retail portfolios, microfinance exposure, and operational risks.
- Buy : above ₹940.
- Stop loss: ₹905.
- Target price: ₹1040 (2 Months)
ASIANPAINT (Cmp ₹2671.60)
- Why it’s recommended: Asian Paints is India's largest and the world's 8th-largest decorative coatings company. Beyond paints, it offers home decor, modular kitchens, and expert painting service. Forming an inverted Head and Shoulder pattern the strong breakout is fuelling some strong upward traction. The relative Strength index is also seen heading higher suggesting some upward momentum, one can consider going long.
- Key metrics:
- P/E: 67.89,
- 52-week high: ₹2985.70,
- Volume: 1.56M.
- Technical analysis: Support at ₹2500, resistance at ₹2900.
- Risk factors: Raw material inflation driven by crude oil, and rural demand slowdowns. Investors should closely monitor commodity cycles and market share retention.
- Buy : above ₹2680
- Stop loss: ₹2600
- Target price: ₹2850 (2 Months)
TEJASNET (Cmp ₹520.40)
- Why it’s recommended: Tejas Networks Ltd is an Indian telecom and networking products company under the Tata Group. They design, develop, and manufacture 4G/5G radio access, fiber broadband (GPON/XGS-PON), and optical transmission equipment for telecom service providers, utilities, and governments global. After some sharp decline we can see that the prices have now shown some support emerging from the cloud support forming rounding patterns. With a strong closing on Daily charts we can now look to invest for the short term as momentum is seen picking up. The steady rise in the Relative Strength Index after stabilising at the neutral zone suggests that we could be looking at some upside.
- Key metrics:
- 52-week high: ₹749.95
- Volume: 14.29M
- Technical analysis: Support at ₹460, resistance at ₹625.
- Risk factors: Severe financial strain with persistent operating losses, heavy reliance on unpredictable government contracts (like BSNL), and significant working-capital lockups
- Buy : above ₹525
- Stop loss: ₹490.
- Target price: ₹590.
Outlook for Trading
The only thing to do at such times is to take a slightly detached view and follow the bigger trend. For this one has to develop a bit of a patience and also have conviction on the item being traded or invested. Volatile days can surely test those convictions and patience but that is the stuff that good trading is made of. Since the larger trend still remains undisturbed, one can continue with a bullish bias in select stocks and stick with that.
Despite the decline prices of mid and small cap stocks continue to remain attractive at current levels and this is now inviting those who missed a good opportunity to reenter the market. No doubt the sentiment is a bit affected due to the decline in the global markets the trends however seem to have stalled. But one may also attribute that to year end considerations and one now looks to reinstatement of the fund flow towards markets from domestic sources during the current quarter. Fund flow is an important element of the ongoing bull phase. Anything that upsets it can create headwinds for the bulls.
The weekly candle is positive for Nifty while Bank nifty continues to rethink on the bullish prospects. The breadth in the recovery was decent as both small and midcap indices too show a positive candle for the week. One may therefore expect the range bound scenario to continue in the coming week and Nifty to face challenges around 24000-24100 region.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.