May 29, 2023

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Business&Finance Specialists

Day trading guide for today: Five buy or sell stocks for Friday- May 26

5 min read

In the final hour, the majority of the sectors reversed trend and began trading in the green. The sectoral indices were driven by FMCG and Realty, which held steady throughout the session.

Among the biggest losers were Nifty Media (down 0.06%), Nifty PSU Bank (down 0.45%), and Nifty Energy (0.06%). Among the top gainers were Nifty Infrastructure (0.61%), Nifty FMCG (0.61%), and Nifty Metal (0.30%).

The Nifty 50 index ended 0.20% higher at 18,321.15, while the benchmark S&P BSE Sensex gained 0.16% to 61,872.62.

“Domestic indices saw volatility on back of monthly FNO expiry and weakness in global markets. Nifty opened lower and remained negative for most part of the day. However, the index made swift recovery in last hour and closed at day’s high with gains of 36 points at 18,321 levels. Most sectors ended in green, except for Oil & Gas, PSU Bank and Financials.

On global front, US debt ceiling uncertainty and a stronger dollar weighed on investor’s sentiments. Yet again, we saw strong recovery from lower levels indicating overall strength in the market. We continue to expect gradual up-move in the benchmark indices led by support based buying. A close above 18,400-18,450 zones could trigger the next leg of rally in markets,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

FIIs continue 5-day buying streak pump in 589 Cr Indian equities on 25th May, DIIs buy 339 Cr

What to watch for today?

Stock Specific movement to watchout for:

Vodafone Idea: The company announced its Q4FY23 results on May 25, reporting a net loss of 6,418.9 crore, compared to a loss of 6,563 crore in the corresponding period last year. The telecom major’s revenue from operations during the January-March quarter stood at 10,532 crore.

FSN E-Commerce Ventures: The parent company of Nykaa, has some bright spots in its March quarter results. Consolidated EBITDA margin rose 147 basis points (bps) year-on-year and nearly 9bps sequentially to 5.4%. This is the first time in the March quarter where Nykaa’s Ebitda margin has risen sequentially post a seasonally-best December quarter, said JM Financial Institutional Securities analysts in a 25 May report.

Indian Energy Exchange: The company announced on Thursday that its consolidated net profit for the March quarter remained almost unchanged at 88.33 crore. The company had reported a consolidated net profit of 88.40 crore in the quarter ended on March 31, 2022, according to a BSE filing.

Gujarat State Fertilisers & Chemicals: During the financial year ended, the company posted record breaking performance and achieved the highest ever sales, net profit and dividend of 500%. During FY22-23 the company recorded a net revenue of 11,445 Cr up by 25% YoY from 9,178 Cr in FY 21-22.

Mrs Bectors Food Specialities: The company announced its Q4FY23 results on May 25, reporting a net profit of 27.6 crore, with a growth of 170%, compared to 10.2 crore in the corresponding period last year. The company’s board recommended a final dividend of 1.75 per equity share having face value of 10 each.

Stocks to Watch: Reliance, Vodafone Idea, Emami, OIL, Zee Entertainment

Q4FY23 earnings to lookout for: The list of some of the prominent companies who will release their Q4 results are as follows – Avalon Technologies Ltd, Bombay Burmah Trading Corp Ltd, BEML Ltd, Bharat Heavy Electricals Ltd, Birla Precision Technologies Ltd, Capacite Infraprojects Ltd, Chambal Fertilisers & Chemicals Ltd, Easy Trip Planners Ltd, Edelweiss Financial Services Ltd, Esaar (India) Ltd, Finolex Cables Ltd, Grasim Industries Ltd, Housing & Urban Development Corporation Ltd, Indiabulls Enterprises Ltd, Imagicaaworld Entertainment Ltd, Indigo Paints Ltd, Ind Renewable Energy Ltd, Inox Green Energy Services Ltd, Inox Wind Ltd, KDDL Ltd, Mahindra & Mahindra Ltd, Maharashtra Seamless Ltd, MOIL Ltd, Samvardhana Motherson International Ltd, NCC Ltd, Oil and Natural Gas Corporation (ONGC) Ltd, PNC Infratech Ltd, PNC Infratech Ltd, Shree Renuka Sugars Ltd, Sun Pharmaceutical Industries Ltd, Sunteck Realty Ltd.

Q4 results today: M&M, ONGC to Sun Pharma – these companies to announce earnings on May 26

Trade Ideas for today

Sumeet Bagadia, Executive Director at Choice Broking. recommends buying Eicher Motor at 3,651 with a stop loss of 3,555 for a target price of 3,810.

According to Bagadia, Eicher Motor has witnessed strong buying interest from its prior support zone. The stock is following Higher High- Higher Low formation in daily chart. Moreover golden crossover ie, 50 DMA is crossing 200 DMA is seen in the chart confirms the bullish trend. As indicators like RSI and MACD are positively skewed, it validates the price action. One can initiate long position at current marker price of 3,651 for the target price of 3,810. Stop loss can be kept as 3,555.

Further, Sumeet also suggests buying Voltas in cash at 812.25 with a stop loss of 790 for a target price of 855.

“Voltas has several strong supports in 790-800 range. Currently, the stock is trading around 812.25. A smaller resistance is visible on the charts near 823 levels, which is also a 50 Day EMA. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of 855 and higher. The RSI indicator is also trading at 49 levels indicating strength. Based on the above analysis we expect Voltas to move higher towards 855 levels,” said Bagadia.

On the Radar: Here are key stocks to buy in the trading session of Friday

Anuj Gupta, Vice President – Research at IIFL Securities:

– Buy JSW Steel with a stop loss of 674 for a target price of 720.

According to the analyst, the stock has strong technical chart and has recovered from oversold zone. Its near the support level and could witness fresh buying.

– Buy Tata Power with a stop loss of 202 for a target price of 222. The analyst notices a strong techincal chart and its on the positive side from last four days. The rising volumes are showing strength and a bullish breakout on the chart.

Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi:

– Buy Cipla at 945 with a stop loss of 920 for a target price of 975.

The analyst witnesses a candle stick pattern and believes the stock is in a higher top, higher bottom formation.

– Buy Voltas at 812 with a stop loss of 795 for a target price of 840.

The analyst believes the stock to be in the oversold zone, and Moving Average Convergence Divergence (MACD) is turning up on a daily timezone.

– Nifty Spot index to see support at 18000/18050, while resistance seen at 18500/18550

– Bank Nifty spot index to see support at 42500/42600 and resistance – 44300/44000

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 taking any investment decisions.


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