Intraday Stocks To Buy Today, May 20: Top Picks By Sumeet Bagadia For Profitable Trading On Tuesday

The previous session saw the Nifty close at 24,945.45, down 0.30%. During the first half, the index stayed sideways, but in the second half, it saw some correction from higher levels, which caused it to fall below the 25,000 mark. As sellers strengthened their hold in the higher zone, Nifty Bank completed the day up 0.12% at 55,420.70; nevertheless, although holding 55K, Nifty Bank was unable to break out. The India VIX jumped 4.47% to close at 17.35, an enormous rise that necessitates caution considering the ongoing uncertainty.

Nifty Outlook Today

"With Nifty struggling to post a strong follow-through, it's evident that sellers are gradually solidifying their stance, showing some weakening of the underlying strength. Yet the index still trades above short-term moving averages, which keeps the broader tone sideways to mildly positive. Until the index decisively breaks below its key support zone, buyers will likely re-emerge at lower levels. Going forward, 25,150 remains the critical resistance to watch only a breakout above this could revive strong optimism. On the downside, holding 24,800 is essential. Even if the index tests levels as low as 24,500, that drop might present an ideal opportunity to accumulate for the next move. At present, the index remains in a phase of sideways consolidation and mild profit-booking, as it continues to find its direction," commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"With no follow-through on the upside, Bank Nifty is showing signs of fatigue at higher elevations. Bears are progressively tightening their grip, but bulls are clinging to the crucial support patches. Even though the index is managing to close above short-term averages, the sentiment has turned sideways to marginally bullish. Unless there's a decisive close above 55,500, the upside may stay capped. On the flip side, dips toward 55,000 and further toward 54,500 are likely to see buyers stepping in. Currently, the index is experiencing a phase of dullness with mild profit booking, but the broader structure remains intact unless 54,500 is broken decisively," stated Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Tuesday, May 20 amid Nifty holding above the 9-EMA and 20-SMA, highlighting the short-term bullish outlook.

Aarti Pharmalabs

Buy AARTIPHARM in cash @ Rs 855.25, Stop-loss @ Rs 825, Target @ Rs 915

AARTIPHARM is exhibiting strong bullish momentum, currently trading at an All-time high of 862 levels. AARTIPHARM Ltd surged nearly 7%, indicating firm buying interest throughout the session. AARTIPHARM has been on a robust upward trajectory since its April low, where the stock bottomed out around the ₹574 zone.

Since then, it has rallied more than 50% in a little over a month, consistently forming higher highs and higher lows-a classic bullish pattern. AARTIPHARM has broken out of a multi-month consolidation zone with strong volume, suggesting further upside potential.

Additionally, AARTIPHARM is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 68.02 levels.
For traders, keeping an eye on the strong support near 844 levels is advisable, as a breach of this level could signal a shift in sentiment.

Overall, AARTIPHARM current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying AARTIPHARM and the CMP of 855.25 with a stop loss of 825 for the target of 915.

Steel Strips Wheels

Buy SSWL in cash @ Rs 244.76, Stop-loss: Rs 235, Target: Rs 260

SSWL rose by a remarkable 5.85% in Monday trade. The rally was backed by strong volumes and a sharp bullish candle, suggesting aggressive accumulation at lower levels. The counter has been on a strong uptrend since early March, marking a decisive breakout from a prolonged consolidation phase. A large bullish candle with strong range expansion underscores renewed investor confidence and robust momentum in the stock

Adding to the positive momentum, Importantly, this move came after a brief pullback near the 20-day EMA, which held strong support near ₹222, and acted as a springboard for the current rally. Furthermore, SSWL is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying SSWL in cash at CMP of 244.76 for the target of 235 with a stop loss of 260.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.