Buy or sell stocks: Despite finishing the week flat, the domestic benchmark indices, the Nifty 50 and the Sensex, had their best week since the beginning of February thanks to increases in metal and financial sectors.
During the session, the Sensex reached a new all-time high of 75,636.50, but it was unable to maintain its gains and ended the day 8 points lower at 75,410.39. The Nifty 50 reached a new all-time high of 23,026.40 during the session, but finished the day 11 points down at 22,957.10.
According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, the Nifty 50’s 23,000 milestone is something to celebrate, and the positive takeaway was that the benchmark ended a choppy session just a tad below the dotted lines, most importantly, shrugging off extremely weak overnight Wall Street cues.
Buyers are seen confident amidst investors hoping or expecting continuation of the current regime in the general elections, and oil prices tumble towards $76 a barrel, said Tapse.
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Stocks to buy on Monday — May 27
On stocks to buy on Monday, Sumeet Bagadia recommended three shares to buy on Monday — Larsen & Toubro (L&T), Axis Bank, and Bharti Airtel Ltd.
Larsen & Toubro (L&T)
L&T is currently trading at ₹3,625, exhibiting a strong reversal from the bottom level. The price action has formed a strong bullish candle with substantial volume, signalling a bullish reversal following a correction from the top. There is potential for LT to achieve a target price of ₹3,860 in the near term, making it advisable to consider purchasing at a CMP of ₹3,625.90 and adding on dips near ₹3,525 levels.
Additionally, LT is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.
To effectively manage risk, it is recommended to implement a stop-loss (SL) at ₹3,475. This precautionary measure is crucial to safeguarding your investment in the event of an unexpected market reversal.
In summary, considering the technical analysis and current market conditions, LT appears to be an attractive buying opportunity at CMP of ₹3,625.90; it can also be added to dips near ₹3,525 for those aiming for a ₹3,860 price target with a stop loss of ₹3,475.
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Axis Bank Ltd
Axis Bank is exhibiting promising bullish signals in its recent price movements forming a rounding bottom pattern. The stock has shown resilience by rebounding from a support level of ₹1,125, which is closely aligned with its 20-day Exponential Moving Average (EMA), suggesting strong investor interest at this point. Currently trading around ₹1,174 levels, Axis Bank has successfully recovered from the support and surpassed the crucial resistance at ₹1,150. This breakout often signifies the initiation of a bullish trend, indicating potential for further upward movement.
The stock is trading above its key moving averages, reinforcing its strength in the current market conditions. This alignment with the moving averages suggests sustained positive momentum. A minor resistance can be observed at the ₹1,185 level. If Axis Bank manages to overcome this resistance, it is likely to continue its upward trajectory.
Read More: Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday – May 27