Technical stock picks for May: Nirmal Bang likes IEX, City Union Bank – here's why

The marketplace whitethorn stay volatile successful the adjacent word owed to the upcoming General Election result expected successful aboriginal June. Other factors similar a imaginable US slowdown, mixed firm results successful India, and home money enactment person led Nirmal Bang to foretell the Nifty volition commercialized successful the scope of 22,000-23,000 for the May series.

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Technical View

The brokerage pointed retired that the Nifty rallied powerfully successful the archetypal week of April, reaching a beingness precocious of 22,775.70, however, aft hitting an all-time high, the Bulls were incapable to prolong their gains astatine higher levels. This displacement triggered nett booking, oregon a correction, of astir 1,000 points.

Technically, Nirmal Bang noted that the Nifty faces beardown absorption betwixt 22,640 and 22,700. If it manages to adjacent supra 22,700 for 2 consecutive trading sessions, this could pave the mode for an upward rally towards 23,000/23,300 levels. Meanwhile, connected the downside, the Nifty has beardown enactment astatine 22,200, its 50-Day Moving Average. If it fails to clasp supra this level connected a closing basis, it could spot further selling pressure, perchance pushing the Nifty down to 21,800-21,600, predicted Nirmal Bang.

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Furthermore, the regular momentum indicator, RSI, shows strength, hinting astatine a imaginable near-term uptrend. Traders should debar assertive abbreviated positions and see buying opportunities connected dips, arsenic these could fortify the Nifty, it advised.

Amid this backdrop, the brokerage has travel retired with 2 method picks for the existent period (May). Here's what it says:

Indian Energy Exchange (IEX) - BUY IEX supra ₹157.40, ADD connected dips astatine ₹150 for a people of ₹185 with a strict halt nonaccomplishment of ₹144.

As per the brokerage, technically, the play illustration suggests that the banal has fixed the breakout of a downward-sloping transmission suggesting a imaginable upmove successful the adjacent term. It is good placed supra each the important moving averages connected a closing basis. An absorbing information is that its terms is rising on with decent measurement indicating strength. Momentum indicator RSI is showing spot successful its play charts, it said.

The banal has mislaid implicit 7 percent successful the past 1 twelvemonth and implicit 10 percent successful 2024 YTD. The scrip has shed astir 4 percent successful May truthful acold aft an implicit 16 percent leap successful April. However, it was successful the reddish successful the archetypal 3 months of the year, down 12 percent successful January, 3.7 percent successful February and 5.5 percent successful March.

Read here: Nifty 50 tumbles implicit 600 points successful 4 sessions, down 1.65% successful May truthful far

City Union Bank (CUB) – BUY CUB supra ₹160, ADD connected dips astatine ₹154 for a people of ₹185 with a strict halt nonaccomplishment of ₹148.

"CUB has fixed a breakout of the cupful and grip enactment connected play charts. The regular illustration suggests that the banal has fixed the emblem signifier breakout with measurement indicating a imaginable upmove successful the adjacent term. Stock is good placed supra each the important moving averages and a affirmative mean crossover is seen. Momentum Indicator specified arsenic RSI is showing a affirmative crossover," explained the brokerage.

Read here: Q4 Results Impact: IGL banal jumps 7% aft PAT rises 9% successful March quarter

The banal has risen implicit 14 percent successful the past 1 twelvemonth and implicit 4 percent successful 2024 YTD. The scrip has mislaid implicit 3 percent successful May truthful acold aft a 19 percent leap successful April. Meanwhile, it was wholly level successful March. However, the banal was successful the reddish successful the archetypal 2 months of the year, down astir 3 percent successful January and 6.7 percent successful February.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 08 May 2024, 01:32 PM IST