Stock market today: Trade setup for Nifty 50 to India VIX, eight stocks to buy or sell on Friday — May 17

Stock market today: The Indian stock market closed higher on Thursday, with the Nifty 50 index gaining 203 points and the BSE Sensex surging 676 points. The Bank Nifty index also ended on a high note, up by 289 points. Cash market volumes on the NSE reached ₹1.17 lakh crore, the highest since May 03. The small-cap index outperformed the frontline indices, and the advance-decline ratio remained positive at 1.32:1.

Trade setup for Friday

On the outlook for Nifty today, Nagaraj Shetti, a seasoned Senior Technical Research Analyst at HDFC Securities, shares his insights. He says, "The formation of long lower shadows for two occasions in the last four sessions signals emergence of sharp buying on dips. This is a positive indication and suggests more upside ahead. Immediate resistance of 22,300 (mid part of the long bear weekly candle of last week) has been taken out on the upside on Thursday, and the Nifty is expected to reach another resistance of around 22600 levels (upper part of the last weekly candle) in the near term. Immediate support for Nifty today is placed at 22,280 levels."

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 17

On the outlook for the Bank Nifty today, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta, said, "The Bank Nifty opened higher but remained volatile throughout the day, ultimately closing higher at 47,977. Technically, the index still respects a bullish engulfing candle, indicating strength. The bullish momentum will continue as long as the index remains above 46,980. On the upside, the 21-DEMA is placed near 48,050, which will serve as the first hurdle for the index, followed by 48,500."

On the outlook for the Indian stock market, Sumeet Bagadia, an experienced Executive Director at Choice Broking, provides his analysis. He says, "The India VIX Index has retraced from the 52-week high, but the volatility index is still in the 19 to 22 range. Bragging below 19 would inject more confidence among bulls. However, breaching the upper hurdle would mean fresh volatility in the Indian stock market."

Buy or sell stock ideas by experts

Stock recommendations for today: Sumeet Bagadia of Choice Broking, Ganesh Dongre of Anand Rathi, and Shiju Koothupalakkal of Prabhudas Lilladher have recommended a total of eight buy or sell stocks for today. These stocks are categorized under each expert's name for better organization and understanding.

Sumeet Bagadia's stocks to buy today

1] Welspun Enterprises: Buy at ₹392.75, target ₹415, stop loss ₹377.

Welspun Enterprises share has recently exhibited a robust breakout from the critical resistance zone of ₹365 to ₹377 daily, consolidating the move with higher highs and higher lows on the weekly chart. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

2] Triveni Turbine: Buy at ₹605, target ₹644, stop loss ₹584.

Triveni Turbine share exhibits bullish solid momentum, trading at an all-time high of ₹612.7. The recent breakout above the crucial resistance at ₹585 levels is a significant technical development supported by robust trading volumes, reinforcing the strength of the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors with a target of ₹644 and a stop loss at ₹584.

Ganesh Dongre's shares to buy today

3] Chambal Fertilizers: Buy at ₹404, target ₹422, stop loss ₹392.

We have seen significant support in this stock, around ₹392. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹404 price level, which may continue its rally till its next resistance level of ₹422. So, traders can buy and hold this stock with a stop loss of ₹392 for the target price of ₹422 in the near term.

4] ICICI Prudential: Buy at ₹590, target ₹615, stop loss ₹575.

In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹612. So, holding the support level of ₹575, this stock can bounce toward ₹615 in the short term, so the trader can go along with a stop loss of ₹575 for the target price of ₹615.

5] Power Grid Corporation: Buy at ₹312, target ₹328, stop loss ₹304.

We have seen strong support in this stock, around 304 rupees. So, at the current juncture, the stock has again seen reversal price action and bullish candlestick pattern formation at the ₹312 price level, which may continue its rally until its next resistance level of ₹328. Hence, traders can buy and hold this stock with a stop loss of ₹304 for the target price of ₹328 in the near term.

Shiju Koothupalakkal's buy or sell stocks

6] Chalet Hotels: Buy at ₹789, target ₹824, stop loss ₹767.

After witnessing the short correction, the stock has taken support near the ₹41 zone and indicated a pullback to improve the bias. We can expect a further rise in the coming sessions. The RSI is well placed, cooling off from near the overbought zone. With upside potential visible from the current rate, we suggest buying the stock for an initial target of ₹724, keeping the stop loss at the ₹767 level.

7] HCC: Buy at ₹36.55, target ₹39, stop loss ₹35.

The stock recently witnessed a decent pullback to move past the 50EMA level of ₹36 to improve the bias and is anticipated to rise further in the coming sessions. The RSI is currently well placed, showing strength, and has signalled a buy with the potential to carry on with the positive move further ahead. We suggest buying the stock for an initial upside target of ₹39, keeping the stop loss of ₹35.

8] LIC Housing Finance: Buy at ₹653, target ₹682, stop loss ₹638.

After the consolidation, the stock has indicated a positive candle formation, moving past the 50EMA level of ₹633 to improve the bias and has scope for further rise in the coming sessions. The RSI has consolidated and indicated a trend reversal to signal a buy with upside potential visible from the current rate. With the chart looking attractive, we suggest buying the stock for an initial target of ₹682, keeping the stop loss of ₹638.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.