Stock market recap: Indian equity benchmarks ended the week on a subdued note on Friday, 15 May, as early gains were erased by late-session selling pressure. The Nifty 50 closed 0.19% lower at 23,643.50 after failing to sustain its intraday high of 23,839.30.
Broader market breadth was weak, with 1,219 stocks advancing against 2,028 declining, signalling widespread profit-booking beyond the benchmark indices.
On the sectoral front, Nifty IT and Media were the only outperformers, rising 1.30% and 1.98%, respectively. Nifty Metal and PSU Bank indices were among the worst hit, each declining nearly 2%.
Two stock recommendations by MarketSmith India for 18 May:
Buy: Graphite India Ltd (current price: ₹775)
- Why it’s recommended: Strong position in graphite electrode industry, beneficiary of steel sector growth, export presence across multiple countries, low debt / healthy balance sheet, good cash flow generation in strong cycles, integrated manufacturing capabilities, experienced management team, capacity expansion opportunities, demand support from EV & battery sectors, dividend-paying track record, cost advantage from captive power/resources, and cyclical upturn can boost margins sharply
- Key metrics: P/E: 42.87, 52-week high: ₹802.40, volume: ₹462.17 crore
- Technical analysis: Cup base pattern breakout
- Risk factors: Highly cyclical business nature, earnings volatility due to electrode prices, dependence on steel industry demand, raw material price fluctuations, Chinese competition pressure, global economic slowdown risk, export market dependency, environmental and regulatory risks, high energy cost sensitivity, capacity oversupply in industry, margin pressure during downcycles, currency fluctuation impact, technology substitution risk in future, customer concentration risk in steel sector, and weak demand can sharply reduce profitability
- Buy: ₹767–779
- Target price: ₹890 in two to three months
- Stop loss: ₹720
Buy: Shreeji Shipping Global Ltd (current price: ₹431)
- Why it’s recommended: Strong presence in dry bulk logistics, operations across 20+ ports, integrated shipping & cargo handling model, large fleet and equipment base, long-standing client relationships, high repeat business from customers, growth opportunity from port expansion in india, strong margins and profitability growth, experienced promoters with industry expertise, expansion into supramax carriers, beneficiary of rising trade and cargo movement, asset-backed business model, improving operational efficiency, diversified sector exposure (coal, metals, FMCG, energy), and strong western India port presence
- Key metrics: P/E:NA, 52-week high: ₹450.00, volume: ₹105.41 crore
- Technical analysis: Cup base pattern breakout
- Risk factors: Shipping industry is highly cyclical, revenue decline seen in recent years, dependence on dry bulk cargo demand, freight rate volatility risk, high capital-intensive business, debt and fleet expansion risks, dependence on few key customers, fuel cost fluctuations can hurt margins, regulatory and environmental compliance risks, global trade slowdown impact, currency fluctuation exposure, port disruption and geopolitical risks, aging fleet maintenance costs, competition from larger logistics players, overvaluation risk after strong listing gains, Sri Lanka/international operation risks
- Buy at: ₹427–433
- Target price: ₹500 in two to three months
- Stop loss: ₹415
Nifty 50 performance on 15 May
Indian equity benchmarks ended marginally lower on 15 May, amid broad-based profit booking and weakness in financials, metals and PSU banks. The Nifty 50 slipped 46.10 points, or 0.19%, to close at 23,643.50 after trading in a volatile range of 23,610.30–23,839.30 during the session.
Market breadth remained firmly negative, reflecting cautious investor sentiment, with 1,219 stocks advancing against 2,028 declines, while 119 remained unchanged.
On the sectoral front, IT and media stocks outperformed, with Nifty IT rising 1.30% and Nifty Media gaining 1.98%, supported by selective buying in technology counters. Defensive pockets such as FMCG and pharma also saw steady demand. On the downside, Nifty Metal fell 1.93%, while PSU Banks and Oil & Gas indices declined sharply, weighing on broader sentiment. Financial services remained under pressure, offsetting resilience in select large-cap technology names.
Technically, the Nifty 50 saw a subdued session and continued to trade with a negative bias, reflecting sustained weakness in broader sentiment. The index attempted to reclaim its 50-DMA during the session, but the recovery lacked follow-through buying, and it eventually closed below the level—signalling that bulls remain cautious at higher levels.
Momentum indicators remain mixed. The Relative Strength Index (RSI) is placed near 45, below its signal line, indicating weakening momentum without entering oversold territory. The MACD continues to hover in negative territory with a bearish crossover intact, suggesting limited upside momentum in the near term.
According to O’Neil’s methodology of market direction, the Indian equity market has been downgraded to an “Uptrend Under Pressure” from a “Confirmed Uptrend”.
From a levels perspective, the Nifty continues to trade below 23,800 and its 50-DMA despite a rebound from recent lows, indicating that the near-term trend remains cautious. The inability to decisively reclaim the 23,800–24,000 zone suggests that participants are still awaiting stronger follow-through buying to confirm a sustained recovery, making this band critical for sentiment in the near term.
On the downside, the 23,250–23,150 zone emerges as an important demand area, where buying interest is likely to remain active. A decisive break below this range could weaken the recovery structure and trigger further profit-booking, potentially dragging the index towards the 22,700 level in the coming sessions.
Nifty Bank's performance
Nifty Bank opened on a negative note at 54,207.75 and witnessed sustained selling pressure throughout the session amid weak broader market sentiment. The index attempted an intraday recovery after the open, but profit-booking emerged at higher levels, limiting upside momentum.
During the day, it touched an intraday high of 54,325.45, while sellers dragged it to a low of 53,628.30 before it eventually settled at 53,710.35, down 418.60 points, or 0.77%. The candlestick structure signals continued weakness, with lower highs and lower lows on the daily timeframe. The index also remains below its short-term moving averages, reflecting cautious participation and subdued banking sector sentiment ahead of key macro triggers and institutional flows.
The daily RSI stands near 41.60, indicating weakening momentum and suggesting the index is edging closer to bearish territory without yet entering oversold conditions. It remains below its signal average, highlighting fading buying strength. The MACD continues to trade below the zero line, with the MACD line below the signal line, confirming a negative crossover and persistent bearish momentum. Declining histogram bars further indicate a loss of upside traction. Overall, the RSI and MACD setup suggests that rallies are likely to face selling pressure unless strong directional buying emerges.
From a technical perspective, immediate support for the Nifty Bank index is placed near 53,500, followed by a stronger demand zone around 52,800–52,500. On the upside, resistance is seen near 54,300 and then around 55,100, which coincides with the 50-DMA. The index continues to trade below both its 21- and 50-DMA, indicating a weak intermediate trend structure.
If the index fails to hold the 53,500 support, downside pressure may intensify in the coming sessions. Conversely, a sustained move above 54,300 could trigger short covering and a technical rebound. Broader global cues, banking liquidity trends, bond yields and FII participation are likely to remain key drivers for near-term direction.
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.