Stocks To Buy: Expert advised to buy 2 PSU stocks today, check TL; SL

Stocks to Buy: The Nifty index started on a positive note around 25,000 on Tuesday. However, selling dominated from the very first minute. The market declined due to profit booking at higher levels. The index gradually slid downwards throughout the session and finally closed below its important support of 24,850.

Expert advised to buy 2 PSU stocks today

Selling was seen on every small bounce. This shows that after a long time there is continuous selling pressure at higher levels. Apart from this, Nifty has been making lower highs for the last three trading sessions. This reflects a cautious stance in the market.

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Nifty formed a bearish candle on the daily chart and closed near the day's low to end the day with a loss of over 260 points. Now as long as it sustains below 24,850, profit booking can be seen at 24,550 then 24,444 levels. While on the upside resistance is seen at 24,850 then 25,000 levels.

Nifty Outlook Today

Maximum Call open interest is at 25,000 then 25,100 strikes. While maximum Put open interest is at 24,000 then 24,500 strikes. Call writing is seen at 25,000 then 24,800 and Put writing is seen at 24,500 then 24,300. This data suggests a broader range between 24,300 to 25,200 and an immediate range between 24,500 to 24,900.

Stocks to buy and sell for May 21:

Buy ONGC | Current price: ₹249 | Stop-loss: ₹242 | Target: ₹262

ONGC has given a falling supply trendline breakout on the daily chart and trading volume is above average. The MACD indicator is upwards showing strength in this breakout.

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Buy GAIL | Current price: ₹191 | Stop-loss: ₹186 | Target: ₹204

GAIL has turned up from the key support levels and is respecting the 50 DEMA support zone. The stochastic indicator has come out of the oversold zone indicating positive movement.

Sell MUTHOOTFIN 29 May Futures | Current Price: ₹2,033 | Stop-loss: ₹2,110 | Target: ₹1,901

Muthoot Finance has given a range breakdown and formed a bearish Marubozu candle. This is a sign of weakness. The RSI indicator is also down which confirms the downtrend.