Stocks to Watch: ICICI Bank and M&M Featured in Top Trading Ideas for May 16, 2025
By Kshitij Anand, ETMarkets.com
May 16, 2025 – As the Indian stock market gears up for trading today, there are promising signs of a bullish outlook driven by favorable global cues and encouraging trends in derivatives data. Market experts are suggesting a ‘buy on dips’ strategy for day traders as indices show significant strength.
Market Overview
The benchmark Nifty is expected to open higher, with current indications placing its level at around 24,750.70, reflecting a minor dip of 82.9 points. The positive signals in the market are underscored by a notable increase in the Put-Call Ratio (PCR), which surged from 0.73 to 1.08. This shift points towards an optimistic sentiment among traders.
The India Volatility Index (VIX), a measure of market volatility, declined by nearly 2%, closing at 16.89 on the previous trading day. Solid growth was observed in the previous session, with the Nifty50 climbing over 600 points and the BSE Sensex advancing by more than 1,900 points. Analysts comment that successfully breaking through the 25,000/82,500 mark reinforces the market’s positive trajectory.
Expert Insights
Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, emphasized the recent bullish sentiment: “The recent increase in the Put-Call Ratio indicates that traders are accumulating bullish positions.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “The market’s outlook remains positive. For day traders, it is advisable to buy on intraday dips and sell on rallies.” He outlined critical support levels at 24,900/82,200 and 24,750/81,800, warning that a drop below 24,750/81,800 could jeopardize the optimistic trend.
Recommended Stocks for Trading
For those with a short-term trading horizon, several stocks have been highlighted by market experts for potential investments:
- Trent Ltd.: Buy with a target price of Rs 5,750, and a stop loss at Rs 5,490.
- TVS Motor Company Ltd.: Buy with a target of Rs 2,870, with a stop loss set at Rs 2,740.
- Bata India Ltd.: Recommended buy with a target price of Rs 1,270 and a stop loss at Rs 1,215.
- Hindalco Ltd.: Suggested buy with a target of Rs 680, and a stop loss at Rs 650.
Key Stock Picks
In addition to the stocks mentioned above, ICICI Bank Ltd. and Mahindra & Mahindra Ltd. (M&M) have emerged as strong candidates for traders:
- ICICI Bank Ltd.: Analysts recommend a buy with a target price of Rs 1,520 and a stop loss at Rs 1,420.
- M&M Ltd.: A buy recommendation is given with a target of Rs 3,300 and a stop loss at Rs 3,080.
These recommendations reflect insights from Kunal Bothra, a market expert featured on ET Now.
Conclusion
As the market opens today, traders are encouraged to be strategic in their approach, leaning towards a buy-on-dip methodology while remaining vigilant of key support and resistance thresholds. Overall sentiments remain bullish, with significant movement expected in various sectors leading into the day’s trading session.
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