Rajesh Palviya of Axis Sec suggests Ajanta Pharma, Tata Communications, NMDC shares to buy today - 15 May
The stock market saw gains on May 15, with Sensex rising 451.46 points and Nifty 50 up 143.25 points, led by IT stocks. Oil companies faced declines after fuel price increases, while the market remains volatile within a range of 24,500 to 23,200.
Stock market today: Benchmark equity indices Sensex and Nifty 50 opened higher on Friday, 15 May, supported by gains in IT stocks and positive cues from US markets.
The BSE Sensex rose 451.46 points, or 0.60%, to 75,850.18 in early trade, while the NSE Nifty 50 advanced 143.25 points, or 0.60%, to 23,832.85.
Leading gains on the Sensex were Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Kotak Mahindra Bank, HDFC Bank, Power Grid Corporation of India, Bharti Airtel, Titan Company, Bajaj Finance, and Maruti Suzuki India.
Quick answers to key questions
Rajesh Palviya of Axis Securities suggests Ajanta Pharma, Tata Communications, and NMDC. Raja Venkatraman recommends ZYDUSLIFE, BERGEPAINT, and NAMINDIA. Sumeet Bagadia recommends Indus Towers, RBL Bank, Adani Green Energy, Natco Pharma, and Schneider Electric Infrastructure. MarketSmith India recommends Engineers India Limited and Alkyl Amines Chemicals Ltd.
The Nifty 50 has been volatile, trading between 23,200 and 24,500. A breakout above 24,000 could lead to a move towards 24,300–24,500, while 23,200–23,100 acts as a crucial support zone.
Ajanta Pharma is above its key SMAs, showing bullish momentum with favorable RSI and Bollinger Band signals. Tata Communications shows a trend reversal with higher highs and lower lows, supported by SMAs and volume. NMDC is in a strong uptrend, well above its SMAs, with rising volumes and favorable RSI across timeframes.
ZYDUSLIFE faces risks from regulatory scrutiny, market competition, and acquisition integration challenges. BERGEPAINT's risks include market competition, raw material cost volatility, and high valuations. NAMINDIA's risks are market volatility and regulatory changes.
Engineers India Limited is recommended for a 'consolidation base breakout' with a target of ₹320 and stop loss at ₹235. Alkyl Amines Chemicals Ltd is recommended after reclaiming the 200-DMA on above-average volume, with a target of ₹1,990 and stop loss at ₹1,650.
Meanwhile, Reliance Industries, State Bank of India, Bharat Electronics, UltraTech Cement, Mahindra & Mahindra, Trent, and Asian Paints traded lower.
Shares of oil marketing companies declined over 2% after petrol and diesel prices were increased by ₹3 per litre each — the first hike in more than four years — amid rising losses due to elevated crude oil prices.
Brent crude, the global benchmark, climbed more than 1% to trade above $107 per barrel.
Share Market Tips and Nifty 50 Outlook by Rajesh Palviya, SVP - Technical and Derivatives Research, Axis Securities
Nifty 50
For the past month, the benchmark index has remained extremely volatile within a broad trading range of 24,500 to 23,200, indicating a lack of strength and direction. Hence, any range breakout on either side may indicate the further direction. At current levels, 23,200-23,100 will act as a crucial support zone. On the upside, any sustainable close above the 24,000 level may trigger upside momentum toward the 24,300–24,500 levels.
Stocks to buy today
Ajanta Pharma Ltd
With the current close, the stock decisively surpassed the "multiple resistance zone" of 3130-3140 on a closing basis, amid heavy volume, indicating increased participation at the breakout zone. The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up alongside the price rise, which further confirms the bullish trend. The daily and weekly "Bollinger Band" buy signal indicates increased momentum. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 3,450-3,670, and its downside support zone is 3,150-3,000.
Tata Communications Ltd
On the daily chart, the stock has experienced a trend reversal, with higher highs and lower lows, indicating bullish sentiment. In addition, the stock is well above its 20-, 50-, and 100-day SMAs, which reconfirms the bullish trend. This breakout around the ₹1,620 level was accompanied by huge volume spurts, signalling increased participation. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is ₹1,750-1,850, and its downside support zone is ₹1,620-1,570.
NMDC
The stock is in a strong uptrend, with a series of higher tops and bottoms, indicating sustained strength. Additionally, the stock is well above its 20, 50, and 100-day SMAs, which reconfirms the bullish trend. These averages are also inching up along with the price rise, which reconfirms the bullish trend. Huge rising volumes along with price increases indicate increased participation. Any weekly decisive close above the 95 level will indicate a "Rounding bottom" formation. The daily, weekly and monthly Relative Strength Index (RSI) is in favourable territory, indicating rising strength across all time frames.
Investors should consider buying, holding, and accumulating this stock. Its expected upside is 103-109, and its downside support zone is 91-88.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
About the Author
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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