Stock Market Today: Trade Setup for Nifty 50 to Global Markets; Eight Stocks to Buy or Sell on Tuesday 

— 20 May 2025

Date: 20 May 2025
Author: ASJ Ventures News Desk

Overview: Cautious Optimism on D-Street as Global Cues Stay Mixed

As the Indian equity markets gear up for Tuesday’s session on 20 May 2025, investors find themselves navigating through a mixed bag of global cues, earnings updates, and sectoral rotations. The Nifty 50 index, after witnessing a consolidation phase around the 22,200–22,400 zone, now finds itself at a technical inflection point.

Global markets remained largely range-bound overnight, with U.S. indices closing flat and Asian peers showing early signs of nervousness ahead of key economic data and central bank commentaries. On the domestic front, positive quarterly earnings from select midcap names and favorable monsoon projections are providing support to the bulls.

🇮🇳 Nifty 50 Technical Outlook: Chart Pattern Signals Tight Tug of War

As of the previous close, the Nifty 50 ended at 22,340, gaining 58 points, signaling resilience despite weak global cues. The index continues to hold above its 20-day EMA, which now acts as a dynamic support.

 Key Technical Levels for Nifty 50:

• Support Zones: 22,150 / 22,000

• Resistance Zones: 22,500 / 22,650

• Momentum Indicators: RSI at 58, showing mild bullishness

• Trend Outlook: Neutral to Positive

 Chart Insight:

Nifty formed a bullish hammer candle on the daily chart, which typically indicates a short-term reversal from intraday lows. If the index holds above 22,150, a breakout toward 22,500 is on the table. However, a breach below 22,000 could trigger a swift correction toward the 21,850 zone.

Global Markets Snapshot: Mixed Signals Amid Central Bank Watch

 U.S. Markets:

Wall Street indices were flat to slightly lower on Monday as investors awaited fresh economic data, including U.S. retail sales and Fed commentary. The Dow Jones Industrial Average closed 0.1% lower, while the Nasdaq Composite held steady, supported by big tech names.

🇯🇵 Nikkei 225:

Japan's Nikkei opened higher but faced selling pressure amid uncertainty in the yen’s movement and subdued exports data.

🇨🇳 Shanghai Composite:

Chinese markets continue to struggle as weak domestic demand and real estate concerns keep foreign investors at bay.

 Bottom Line:

Global cues remain fragile, with rate cut expectations being recalibrated and geopolitical tensions in the Red Sea and Taiwan Strait being closely watched.

Trade Setup for Tuesday, 20 May 2025

Investors should remain stock-specific and avoid aggressive index positions until a breakout above 22,500 or breakdown below 22,000 confirms the next leg of the trend.

Economic Calendar (India)

Eight Stocks to Buy or Sell on 20 May 2025

Here are eight technical and fundamentally filtered stocks that should be on your radar today, with recommended actions:

 1. Reliance Industries (BUY)

• CMP: ₹2,930

• Target: ₹3,020

• Stoploss: ₹2,880

• Rationale: Bullish flag breakout on daily chart; rising volume action

 2. Tata Steel (BUY)

• CMP: ₹162

• Target: ₹172

• Stoploss: ₹157

• Rationale: Positive outlook due to firm global metal prices and increased Chinese steel production

 3. Infosys (HOLD)

• CMP: ₹1,475

• View: Stay cautious

• Rationale: Facing resistance at ₹1,500; RSI overbought; wait for confirmation

 4. Zomato (SELL)

• CMP: ₹172

• Target: ₹158

• Stoploss: ₹178

• Rationale: Bearish divergence on RSI and MACD; delivery volumes falling

 5. State Bank of India (BUY)

• CMP: ₹726

• Target: ₹755

• Stoploss: ₹714

• Rationale: Strong results; breakout from triangle formation on weekly charts

 6. Adani Total Gas (SELL)

• CMP: ₹618

• Target: ₹595

• Stoploss: ₹632

• Rationale: Facing heavy resistance at 50-day EMA; weak fundamentals near term

 7. HCL Technologies (BUY)

• CMP: ₹1,360

• Target: ₹1,420

• Stoploss: ₹1,335

• Rationale: Strong order pipeline and F&O long buildup seen

 8. Biocon (SELL)

• CMP: ₹271

• Target: ₹256

• Stoploss: ₹278

• Rationale: Weak operating margins and declining pharma sentiment

Expert Opinion: Stay Stock-Specific

"Volatility is expected to increase this week as markets react to domestic inflation data and global policy cues. Traders should focus on breakout setups and avoid leveraged positions till the index shows directional strength,"
said Rahul Khatri, a technical strategist at ASJ Wealth Advisory.

Sectoral Outlook

Market Sentiment Meter

• Fear to Greed Index (India): 57 (Greed Zone)

• Put-Call Ratio (PCR): 1.10 (Neutral)

• Advance-Decline Ratio: Positive bias

Trading Strategy for the Day

• Avoid aggressive index shorts unless Nifty breaks below 22,000

• Go long on breakout stocks with strong volumes

• Book profits at resistance zones; deploy fresh capital on dips

• Monitor global data, especially US GDP and Fed commentary

• Stay nimble around expiry week

The Indian markets are expected to open with a slightly positive bias on Tuesday, 20 May 2025, thanks to relatively stable global cues and supportive domestic triggers. While Nifty 50 shows signs of recovery, it remains range-bound, with the 22,500 level being the short-term barrier for bulls.

Traders and investors should focus on stock-specific opportunities, maintain a balanced risk-reward approach, and be alert to economic developments both locally and globally.

Stay disciplined, stay diversified — and let the charts guide your decisions.