Positive global cues propel Nifty Higher; Here are some swing trade opportunities for gains

Benchmark indices extended previous day’s gains on May 17, with NSE Nifty 50 holding firmly in green after rising nearly 100 points to hit 22,500 intraday.

Positive global cues have lifted benchmark indices higher after last week's negative to range-bound sentiment. On May 17, amid favorable global conditions, the Nifty gained and was trading at 22,488.25, up 84.4 points, or 0.4 percent.

As we head into the end of this week, with an additional trading session tomorrow on Saturday, Riyank Arora, a Technical Analyst at Mehta Equities, shares some top swing trade ideas to position for the week ahead:

HCC | CMP: Rs 37.50 | Entry: Strictly above Rs 38 | Stoploss: Rs 35.50 | Target: Rs 46

The stock is forming a volatility contraction pattern on its daily timeframe charts, showing good consolidation over the last four months. "If the stock breaks above the level of Rs 38, it should generate good momentum, potentially moving towards the Rs 45-46 levels. A strict stoploss should be maintained at Rs 35.50 to manage risk effectively. With volumes nearly 1.5 times its 30-day average, we expect the stock to perform well going forward," said Arora.

Read also: F&O Manual | Indices rise tracking global cues; Nifty to face resistance at 22,500

LTIM | Rating: Buy | CMP: Rs 4,746.30 | Entry: CMP | Stoploss: Rs 4,500 | Target: Rs 5,200

The stock has touched its trendline support mark of Rs 4,600 on its weekly charts. The RSI (14) is around 49 and has shown a good uptick on its daily chart. "With the overall longer-term structure being positive and the outlook on IT stocks being strong, we recommend buying LTIM with a strict stoploss at Rs 4,500, aiming for potential targets of Rs 5,150-5,200," said Arora.

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Grasim | Rating: Buy | CMP: Rs 2,424.50 | Entry: CMP | Stoploss: Rs 2,374 | Target: Rs 2,550

The stock has given a good breakout above its Anchor VWAP resistance mark of Rs 2,400 on its daily timeframe charts. Arora said that with volumes surging and nearly equivalent to its 30-day average, the stock is expected to eventually head higher towards potential targets of Rs 2,550 and above. "The RSI (14) near 60 indicates good overall momentum, and a strict stoploss around Rs 2,374 should be maintained to manage risk effectively," he added.

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