Three stocks to buy on 29 May: Recommended by Ankush Bajaj

India VIX, the fear gauge, declined, indicating lower volatility and reduced nervousness among traders.

The Nifty 50 closed 73.75 points lower, down 0.30% at 24,752.45 points. The BSE Sensex dropped 239.31 points or 0.29% to end at 81,312.32. Bank Nifty showed slight strength and ended 64.20 points higher, up 0.12% at 55,417.00.

Three stocks to buy today: Recommended by Ankush Bajaj

Buy: Garden Reach Shipbuilders & Engineers Ltd (Current price: ₹2,891)

Why GRSE is recommended: On the daily chart, the stock has shown strong bullish momentum and broken out of a consolidation range, indicating potential for further upside. Additionally, on the lower time frames, the stock has given a breakout with volume, which confirms the bullish setup and suggests a potential rally in the stock.

Key metrics

Resistance level: ₹2,950-2,970 (short-term target zone)

Support level: ₹2,870 (pattern invalidation level)

Pattern: Bullish continuation breakout on daily chart; volume-backed breakout on lower time frame

RSI: Bullish on both daily and lower time frames, confirming the breakout

Technical analysis: The stock has broken out of a bullish consolidation pattern, showing strong price action and follow-through buying. The RSI adds further confirmation to the bullish structure. Sustaining above ₹2,891 increases the probability of reaching the target zone.

Risk factors: A breakdown below ₹2,870 may invalidate the breakout. Broader market weakness or negative sentiment may impact performance.

Buy at: ₹2,891

Target price: ₹2,950-2970 in 4-5 days

Stop-loss: ₹2,870

Buy: Mazagon Dock Shipbuilders Ltd (Current price: ₹3,663)

Why Mazagon Dock is recommended: On the lower time frames, the stock has formed a triangle pattern and given a breakout, indicating a bullish setup with potential for a sharp move. Additionally, the stock is trading near its lifetime high and looks ready to make a fresh breakout, suggesting strong momentum and further upside.

Key metrics

Resistance level: ₹3,810-3,840 (short-term target zone)

Support level: ₹3,588 (pattern invalidation level)

Pattern: Triangle breakout on lower time frame; nearing lifetime high breakout

RSI: Bullish on both daily and lower time frames, confirming the breakout

Technical analysis: The stock has shown strong bullish consolidation with a breakout on lower time frames. It is approaching a new lifetime high, supported by bullish RSI and strong price structure. Sustaining above ₹3,663 increases the probability of reaching the target zone.

Risk factors: Breakdown below ₹3,588 may invalidate the breakout. Broader market weakness or negative sentiment may impact performance.

Buy at: ₹3,663

Target price: ₹3,810-3,840 in 4-5 days

Stop-loss: ₹3,588

Buy: LT Foods Ltd (Current price: ₹422)

Why LT Foods is recommended: On the lower time frames, the stock has given a rectangle breakout, indicating accumulation and a fresh bullish move. Additionally, on the hourly chart, the stock has broken out of a rising wedge pattern, further confirming the bullish structure and potential for an upward rally.

Key metrics

Resistance level: ₹434-438 (short-term target zone)

Support level: ₹416 (pattern invalidation level)

Pattern: Rectangle breakout on lower time frame; rising wedge breakout on hourly chart

RSI: Bullish on both hourly and lower time frames, confirming the breakout

Technical analysis: The combination of rectangle and rising wedge breakouts suggests strong momentum and buyer interest. The price action is supported by bullish RSI, which adds conviction to the breakout. Sustaining above ₹422 increases the probability of reaching the target zone.

Risk factors: Breakdown below ₹416 may invalidate the breakout. Broader market weakness or negative sentiment may impact performance.

Buy at: ₹422

Target price: ₹434-438 in 4-5 days

Stop-loss: ₹416

Market wrap

Among sectors, PSU Bank was the top gainer with a 0.97% rise. The financial services index also closed higher by 0.22%, followed by the banking index, which gained 0.12%. However, the broader market sentiment remained weak. The FMCG sector was the biggest loser, down 1.49%, followed by the consumption index, which fell 0.89%, and the healthcare index, which ended 0.68% lower.

Among the top gainers, HDFC Life Insurance rose 1.76% due to continued buying interest. Bharat Electronics gained 1.31%, supported by recent defense-related developments. Bajaj Finance closed 1.05% higher amid stock-specific momentum.

On the losing side, ITC dropped 3.16% on weakness in FMCG stocks. IndusInd Bank fell 1.93% due to cautious sentiment in banking names. Apollo Hospitals declined 1.65% on account of profit booking after recent gains.

Nifty technical analysis daily & hourly

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The Nifty 50 opened at 24,832 and remained under pressure throughout the day, eventually closing at 24,752, down slightly from the previous day. It marked an intraday high of 24,864 and a low of 24,737, and, importantly, closed below the lower end of the 27 May range, signaling continued short-term weakness.

Despite several attempts, the index failed to cross above the 24,900-25,000 zone, affirming 25,100 as a strong resistance. On the downside, the 24,700 level acted as a near-term support, but a break below this can expose the index to further declines toward 24,500.

From a broader trend perspective, the index still trades above the 20-day SMA (24,647) and the 40-day EMA (24,221), indicating that the long-term trend remains intact. However, daily momentum indicators are weakening—RSI has slipped to 56 with a downward slope, and the MACD remains in a sell signal below the zero line, suggesting fading strength in the current uptrend.

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On the hourly chart, the setup has turned more clearly negative. The index is trading below both the 20-hour SMA (24,860) and the 40-hour EMA (24,819), and both moving averages are beginning to flatten out. The hourly RSI has dropped further to 45, indicating weakening momentum on an intraday basis. Additionally, the MACD line remains below the zero mark and continues to signal bearishness. The closing near the lower end of the day’s range and below key hourly averages increases the chances of further intraday downside if 24,700 is breached in the next session.

From the derivatives perspective, the maximum open interest on the call side remains at 24,800 and 25,000 strikes, establishing a strong ceiling for the index. On the put side, the highest OI is seen at 24,500-24,700, which may offer short-term support. Notably, there was significant OI buildup on the 24,750 and 24,800 call strikes, while fresh put writing was visible at the 24,700 and 24,750 levels, suggesting a tug-of-war between bulls and bears. India VIX dropped by 2.80% to settle at 18, indicating some cooling in volatility despite the expiry.

Given the technical and derivatives setup, Nifty appears range-bound with a negative bias unless it manages to decisively reclaim levels above 24,800-25,000. A sustained breach below 24,700 could trigger further selling, potentially dragging the index toward 24,500 in the near term. Traders are advised to remain cautious and avoid aggressive long positions until strength is confirmed.

 

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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.

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