On the domestic front, the Reserve Bank of India’s record ₹2.69 trillion dividend to the government lifted sentiment by improving fiscal outlook. All major sectors advanced, with metals, auto, and financials leading the gains.
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Two stocks recommended for today by MarketSmith India for 27 May:
Buy: Housing & Urban Development Corp. Ltd (current price: ₹238.26)
● Why it’s recommended: Strong financial performance, government support
● Key metrics: P/E: 16.83, 52-week high: ₹353.70, volume: ₹ 566.29 crore
● Technical analysis: Reclaimed its 200-DMA
● Risk factors: Asset quality and credit risk, high leverage
● Buy at: ₹ 238.26
● Target price: ₹ 280 in three months
● Stop loss: ₹ 222
Buy: Tata Motors Ltd (current price: ₹ 729)
● Why it’s recommended: Strong domestic market presence, global and domestic demand recovery
● Key metrics: P/E: 11.27, 52-week high: ₹ 1,179, volume: ₹ 952.62 crore
● Technical analysis: Trendline breakout
● Risk factors: Intense competition in EV and PV segments, JLR exposure to global macros, and currency volatility
● Buy at: ₹ 729
● Target price: ₹ 815 in three months
● Stop loss: ₹ 698
Nifty 50: How the benchmark index performed on 26 May
Nifty 50 closed at the 25,000 mark on Monday, extending gains for a second straight session, supported by strength in Auto, IT, and Metal stocks. The index opened with a gap-up at 24,919 and quickly climbed to 25,050 within the first hour. It touched an intraday high of 25,080 before encountering profit booking, leading to sideways movement in a narrow range through the rest of the session.
On the daily chart, Nifty formed a bullish candlestick with a small upper shadow, reflecting positive sentiment tempered by caution at higher levels. Market breadth improved, with the advance-decline ratio at 11:7, indicating broader participation in the rally.
Volume was higher than in the previous session, and the index continues to trade above all key moving averages on both daily and weekly timeframes—a structurally positive sign despite recent consolidation. The RSI turned higher, holding in bullish territory near 61, while the MACD remains in a negative crossover, suggesting a mixed short-term setup.
According to O’Neil’s market direction methodology, Nifty has shifted from a “Rally Attempt” to a “Confirmed Uptrend.”
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While the prevailing trend remains optimistic, a sustained move above 25,200 is needed to confirm further bullish momentum. A decisive breakout could open the door for a rally toward 25,700–25,800. On the downside, immediate support lies at 24,800, which may provide a cushion in the event of a short-term pullback.
Bank Nifty’s performance on 26 May
Bank Nifty opened with a gap-up on Monday, and traded in a narrow range between 55,875 and 55,307, eventually closing 0.31% higher. The price action formed a long-legged Doji on the daily chart, signalling indecision, but with a bullish undertone, as the index also registered a higher high and higher low. The pattern suggests consolidation with an upward bias.
Technically, Bank Nifty appears to be shaping a bullish pennant formation on the daily chart, hinting at a potential continuation of the prevailing uptrend if the index breaks above the 56,000 mark.
Meanwhile, Nifty Financial Services (FINNIFTY) rose nearly 0.40%, forming a bullish candle and reflecting broader strength in the financial sector.
Bank Nifty continues to trade above all key moving averages and is hovering near its all-time highs across multiple timeframes—a structurally positive sign. The RSI is trending higher, currently around 60, indicating improving momentum. However, the MACD remains in a negative crossover, warranting measured optimism.
Under O’Neil’s market direction framework, Bank Nifty has now moved from an “Uptrend Under Pressure” to a “Confirmed Uptrend.”
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The short-term outlook remains constructive. A sustained breakout above 56,000 would confirm bullish continuation and could pave the way for an upside move toward 57,500–58,800. On the downside, immediate support is seen around 54,500, which may serve as a near-term cushion.
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, developed 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.
