Stock market recap: Indian equity markets ended Wednesday’s session on a resilient note, with late buying helping benchmarks overcome early volatility. The Nifty 50 closed at 23,412.60, up 33.05 points, or 0.14%.
Still, broader sentiment remained cautious after the Indian rupee slid to a fresh record low of 95.80 against the US dollar, weighed down by elevated crude oil prices and continued foreign institutional investor (FII) outflows.
Market breadth remained firmly positive, with 1,962 stocks advancing against 1,303 declines, signalling broad-based buying interest beyond index heavyweights.
Among sectors, Nifty Metal outperformed with a sharp 3.18% gain, followed by Consumer Durables and Oil & Gas, which rose 1.67% and 1.28%, respectively. In contrast, IT and auto stocks came under pressure, with the Nifty IT and Auto indices declining 1.13% and 0.97%.
While geopolitical tensions continue to weigh on investor sentiment, domestic markets are drawing support from sectoral rotation and sustained participation in mid- and small-cap stocks.
Two stock recommendations by MarketSmith India for 13 May:
Buy: Hindustan Copper Ltd (current price: ₹595)
- Why it’s recommended: Only integrated copper producer in India, strong demand from EV, renewables & power sectors, government push for critical minerals & localization, expansion plans for mining capacity, strategic PSU backing from the Government of India, copper demand expected to outpace supply globally, rising infrastructure and transmission projects, potential benefit from higher global copper prices, large resource/reserve base, and reduced import dependency theme supports growth
- Key metrics: P/E: 81.91, 52-week high: ₹760.05, volume: ₹1,079.48 crore
- Technical analysis: Trendline Breakout
- Risk factors: High dependence on global copper prices, PSU-related operational inefficiencies, delays in mine expansion/execution, cyclical commodity business nature, lower profitability during weak metal cycles, labour and regulatory challenges, high capex requirements, environmental clearance risks, competition from private/global players, and stock volatility due to commodity sentiment
- Buy: ₹591–600
- Target price: ₹690 in two to three months
- Stop loss: ₹560
Buy: NMDC Ltd (current price: ₹91)
- Why it’s recommended: India’s largest iron ore producer, strong linkage to steel sector growth, low-cost mining operations, healthy cash reserves & strong balance sheet, consistent dividend-paying PSU, capacity expansion plans underway, beneficiary of infrastructure and construction growth, strategic importance in domestic mining sector, rising domestic steel demand supports volumes, and diversification into steel and other minerals
- Key metrics: P/E:11.05, 52-week high: ₹92.77, volume: ₹378.48 crore
- Technical analysis: Flat base breakout
- Risk factors: Dependence on iron ore price cycles, government intervention/PSU policy risks, environmental and mining clearance issues, high dependence on domestic steel demand, logistics and transportation bottlenecks, margin pressure during weak commodity cycles, export policy and royalty-related risks, operational disruptions in mining regions, steel business execution risks, and stock movement tied to global metal sentiment
- Buy at: ₹91–92
- Target price: ₹105 in two to three months
- Stop loss: ₹86
Nifty 50 performance on 12 May
Indian equity benchmarks ended marginally higher on 13 May after a volatile trading session, with the Nifty 50 closing at 23,412.60, up 33.05 points, or 0.14%. The Sensex also ended in positive territory, aided by selective buying in metal, oil & gas, FMCG and consumer durable stocks.
Broader market participation remained strong, with 1,962 stocks advancing against 1,303 declines, while 113 shares remained unchanged.
Among sectors, Nifty Metal emerged as the top gainer, surging 3.18%, followed by Consumer Durables and Oil & Gas, which rose 1.67% and 1.28%, respectively, reflecting continued interest in cyclical and domestic consumption themes. On the other hand, IT stocks remained under pressure, with Nifty IT falling 1.13%, while auto and realty stocks also traded weak.
After an early decline, the Nifty recovered steadily through the middle of the session before consolidating near closing levels.
Technically, the index attempted to stabilise after the sharp decline seen in the previous session, forming a small-bodied candle that suggests indecision and selective buying at lower levels. Despite the modest recovery, the broader trend remains cautious, with the index continuing to trade below its short-term moving averages and within a pattern of lower highs, indicating limited upside momentum.
The RSI has rebounded mildly from lower levels but remains below the neutral 50 mark, signalling weak momentum and a lack of strong bullish participation. The MACD also remains in bearish territory, with the signal line continuing below the zero axis.
According to O’Neil’s methodology of market direction, the Indian equity market has been downgraded to “Uptrend Under Pressure” from “Confirmed Uptrend”.
Technically, the Nifty 50 has weakened considerably after breaching the crucial 23,800 support level and closing decisively below 23,500, indicating sustained near-term bearish momentum. The breakdown reflects deteriorating sentiment and continued selling pressure across broader markets.
The next key downside zone is seen around 23,150–23,000, which could act as an important demand area. On the upside, the index would need to reclaim and sustain above the 24,000–24,400 range to negate the prevailing negative bias and signal a meaningful recovery in sentiment.
Until then, the broader market setup is expected to remain range-bound with a cautious-to-negative undertone.
Nifty Bank's performance
The Indian banking sector remained volatile on Wednesday, with the Nifty Bank index ending 0.18% lower at 53,456.15. The index swung nearly 910 points during the session, touching an intraday high of 54,103.90 before sharp late-afternoon selling dragged it towards the day’s low of 53,194.25.
Weakness in heavyweight lenders weighed on sentiment, with ICICI Bank, HDFC Bank and Axis Bank declining 0.34%, 0.17% and 0.39%, respectively. Kotak Mahindra Bank and Bank of Baroda, however, emerged as top gainers, rising 0.78% and 0.90% and offering some support to the index.
Technically, Bank Nifty remained under pressure, extending its weak undertone with another negative close and forming a bearish candle on the daily chart. Price action continued to reflect a lower-high, lower-low structure, signalling persistent selling pressure and a lack of strong buying conviction during intraday recoveries.
The index also remains below its key short-term moving averages, while the downward-sloping trajectory suggests the broader trend continues to favour the bears.
The RSI has slipped below the neutral 50 mark and continues to trend lower, indicating weakening momentum and deteriorating market strength. The indicator’s negative slope also suggests bullish participation remains subdued. Meanwhile, the MACD remains in bearish territory, with the MACD line trading below the signal line.
Immediate support for the index is seen in the 53,400–53,300 zone, which coincides with recent swing lows. A decisive breach below this range could open the door for further downside towards 52,800 and subsequently the 52,000 level.
On the upside, immediate resistance is placed near 54,300, followed by the crucial 55,500–55,700 zone, where the 21-day and 50-day moving averages are positioned. As long as the index trades below these moving averages, the broader trend is likely to remain under pressure.
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.