The Indian stock market demonstrated remarkable resilience on Monday, May 18, with both benchmark indices staging strong recoveries from intraday lows. According to reports from Mint, the Sensex ended 77 points higher at 75,315.04, gaining 0.10% after plunging over 1,000 points during intraday trading. Similarly, the Nifty 50 closed 6 points higher at 23,649.95, registering a 0.03% gain despite hitting an intraday low of 23,317.10. As reported by Mint, the Sensex rallied more than 1,100 points from its day's bottom, while the Nifty 50 recovered over 300 points from its lowest level.
According to Sumeet Bagadia, Executive Director at Choice Broking, the formation of a bullish candlestick pattern after filling the opening gap-down indicates buying interest emerging at lower levels. As reported by Mint, the Nifty 50's RSI stands at 45.26, indicating improving momentum though the index still trades below the stronger bullish zone. Bagadia noted that immediate support is placed in the 23,300–23,400 range, while resistance is observed between 23,900 and 24,000 levels. In the derivatives segment, notable call writing was seen at the 23,700 strike, followed by 23,800, while significant put writing was observed at 23,500 and 23,400 levels.
The Bank Nifty index opened with a sharp gap-down at 53,282.15 and remained under pressure during the first half, registering its intraday low of 52,783.45. According to Mint, strong buying interest emerged in the second half, helping the index recover sharply from lower levels and climb towards its intraday high of 53,667.55. The index eventually settled at 53,537.00, declining by 173.35 points or 0.32% for the day. Bagadia observed that the formation of a bullish hammer-like candlestick pattern reflects buying support emerging from lower levels, with immediate support placed in the 52,800–52,900 range and resistance seen in the 54,200–54,300 zone.
Sumeet Bagadia recommends five breakout stocks for Tuesday, May 19, amid ongoing US-Iran war uncertainty. As reported by Mint, the recommended stocks include Knowledge Marine & Engineering Works (buy at ₹2065, target ₹2250, stop loss ₹1948), Shipping Corporation of India (buy at ₹344, target ₹370, stop loss ₹325), PB Fintech (buy at ₹1748, target ₹1900, stop loss ₹1650), Kingfa Science and Technolgy (India) (buy at ₹5303, target ₹5700, stop loss ₹5035), and Dr. Lal PathLabs (buy at ₹1646, target ₹1777, stop loss ₹1575).
