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Nifty outlook; ONGC, GAIL among Chandan Taparia's top stock picks on May 21
Nifty share price:
Nifty index opened on a positive note around the 25,000 mark, but bears took charge from the very first tick, as profit booking was witnessed at higher levels. The index gradually drifted lower throughout the session and eventually slipped below its crucial support of 24,850 zones.
Every small bounce was being sold into, indicating persistent selling pressure at higher levels after a long time. Further, the index has been forming lower highs for the last three trading sessions, indicating a cautious undertone in the market.
It formed a bearish candle on the daily chart and closed the day near its day's low, ending with losses of over 260 points. Now till it holds below 24,850 zones, profit booking could be seen towards 24,550 then 24,444 zones while hurdles can be seen at 24,850 then 25,000 zones.
On the option front, Maximum Call OI is at 25,000 then 25,100 strike while Maximum Put OI is at 24000 then 24,500 strike. Call writing is seen at 25,000 then 24,800 strike while Put writing is seen at 24,500 then 24,300 strike. Option data suggests a broader trading range in between 24,300 to 25,200 zones while an immediate range between 24,500 to 24,900 levels.
Bank Nifty share price:
Bank Nifty index opened on a flattish note but failed to hold 55,555 zones and gradually drifted lower towards 54,800 zones at the latter part of the session. It formed a Bearish candle on the daily scale as selling pressure was seen at higher levels to close with losses of more than 500 points below 55000 zones.
However, rate sensitive index got stuck in a wider range of 1000 points in between 54,500 to 55,500 zones and hovering near its 20 DEMA. Now it has to cross and hold 55,000 zones for a bounce towards 55,250 then 55,555 zones while a hold below the same could see a further decline towards 54,500 then 54,250 levels.
Stocks to buy and sell on May 21:
Buy ONGC CMP ₹249 | Stop-loss: ₹242 | Target: ₹262
The ONGC stock has given a falling supply trendline breakout on the daily chart with higher-than-average traded volumes. The MACD indicator is rising which confirms the strength of the downtrend. ALSO READ | BSE's Asia Index expands offerings with four new factor-based indices
Buy GAIL | CMP: ₹191 | Stop-loss: ₹186 | Target: ₹204
The GAIL Share price has reversed upward from major support levels and is respecting its 50 DEMA support zones with slight dips being bought into. The Stochastic indicator has exited the oversold zones which confirms the positive momentum.
Sell MUTHOOTFIN 29th May FUT | CMP: ₹2,033 | Stop-loss: ₹2,110 | Target: ₹1,901
The Muthoot Finance stock has given a range breakdown with a bearish marubozu candlestick which suggests weakness in the stock. The RSI indicator is declining confirming the downward momentum.
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