NHPC, Tech Mahindra are top buying picks by HDFC Securities for May 22

Nifty struggled to find a direction on May 21 as India moves closer to the election results day. Cash market volumes on the NSE was up at Rs 1.32 trillion – highest since April 25, 2024. Nifty formed a small positive candle on May 21.

The sideways move continues, and Nifty could now face resistance in the 22578-22775 band while 22198 could offer support in the near term.

Buy NHPC(CMP-103.55): | Target Rs 110.20,118.50| Stop-loss Rs 96.50

Stock Price has broken out from downward sloping trend line on the weekly chart. Stock has surpassed the previous swing high resistance. Price rise was accompanied by rise in volumes. 

Stock price has been trading above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have turned bullish on weekly charts.

Buy Tech Mahindra(CMP-1,325): | Target Rs 1,380,1478 | Stop-loss Rs 1,215

On 26th April, Stock broke out from the downward sloping trend line on daily chart. Price rise was accompanied by rise in volumes. Post breakout, stock witnessed correction and reached a gap support on the daily chart. 

After taking support in the gap, sock resumed its primary uptrend. Indicators and oscillators have turned bullish on the daily chart.

(Vinay Rajani, CMT, is a senior technical & derivative analyst at HDFC Securities. Views expressed are his own)