Vinay Rajani of HDFC Sec suggests Oracle Financial Services, Sun Pharma shares to buy

Stock market today: Indian equity markets witnessed a sharp, broad-based selloff in intraday trade on Monday, 18 May, amid weak global cues and heightened risk aversion, dragging benchmark indices Sensex and Nifty 50 down more than 1% each.

The BSE Sensex plunged over 1,000 points to hit an intraday low of 74,180, while the NSE Nifty 50 slipped more than 1% to a low of 23,317 during the session.

Selling pressure persisted strongly across the broader markets, resulting in the BSE midcap and smallcap indices dropping by as much as 2.5%.

This significant drop erased nearly ₹9 lakh crore in investor wealth in just one session, bringing the total market capitalisation of BSE-listed companies below ₹452 lakh crore, down from approximately ₹461 lakh crore in the prior session.

Market Views - Vinay Rajani, Senior Technical and Derivative Analyst, HDFC Securities

Nifty 50 Outlook

From the recent swing high of 24,601, Nifty 50 has corrected by over 1,250 points and is now approaching a crucial swing low support at 23,262. The index is currently trading below its 20, 50, 100, and 200-day EMAs, indicating a well-established bearish trend across multiple time frames.

Broader markets have also witnessed corrective pressure in recent sessions, reflecting a broader risk-off sentiment. The uptrend in Brent crude prices coupled with the depreciation of the Indian Rupee against the US Dollar continues to act as key macro headwinds for domestic equities.

On the sectoral front, Pharma and Healthcare are exhibiting notable relative strength, while the IT index appears to be stabilising and could witness a technical pullback from lower levels. In contrast, rate-sensitive sectors remain under pressure, and traders are advised to maintain a cautious stance with limited exposure to these segments.

Global markets, after a phase of steady upward movement, have started showing signs of increased volatility, which could further influence near-term sentiment in domestic markets.

Technically, a decisive breakdown below 23,262 may accelerate the downside momentum, with the next immediate support placed around 23,100, aligning with the 61.8% retracement of the prior up move from 22,182 to 24,601. On the upside, a sustained move above 23,800 is essential to improve the near-term technical outlook. Until such confirmation is observed, traders should refrain from initiating fresh long positions.

2 stocks to buy in the near-term

Buy Oracle Financial Services Software ₹9,100| Target ₹9,800 | Stop-loss ₹8,700

Oracle Financial Services share price has formed bullish “hammer” candlestick pattern on the daily charts few sessions back. Stock price has also broken out from bullish “Flag” pattern on the daily chart. Stock is placed above all medium- to long-term moving averages. Indicators and oscillators have been showing strength on the medium-term charts.

Buy Sun Pharmaceutical Industries ₹1,875| Target ₹1,950 | Stop-loss ₹1,825

Sun Pharma share price has surpassed the trip top resistance placed near 1850. Price rise is accompanied by rising volumes. Healthcare and pharma indices have broken out on the weekly and monthly charts. Indicators and oscillators have been showing strength on the weekly and monthly charts.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.