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Trade Setup for May 14: Nifty remains in buy-on-dips mode but directional cues lackingThe Nifty slipped lower as traders booked short-term profits. However, sentiment is likely to remain positive in the near term, despite some profit-taking following the recent sharp rise, analysts say.By Meghna Sen   May 13, 2025, 8:13:37 PM IST (Published)3 Min ReadThe Indian equity market gave up some of the gains seen on Monday. After witnessing a stellar rally at the start of the week, the benchmark Nifty 50 index faced profit booking in Tuesday’s session.

From an early morning high of 24,973, the Nifty fell over 400 points and closed near the session’s low. The index ended the day down 346 points at 24,578.

Midcaps continued to outperform, with the Midcap Index closing higher, even as the Nifty declined by 1%.

Sectorally, Media, PSU Banks, and Pharma stocks were the top performers, while the Nifty IT, FMCG, and Auto sectors experienced the most significant losses.

Defence stocks saw buying interest following Prime Minister Narendra Modi’s ‘Made in India’ comment, rising up to 10%. BEL shares hit a fresh record high. Zentech, a producer of drones for the Indian armed forces, hit the 5% upper circuit for the third consecutive day. Other defence-related stocks, such as Bharat Dynamics and Hindustan Aeronautics, also recorded gains.

UPL was the top midcap loser on below-than-expected FY26 outlook, falling 5%. UPL Corporation expects revenue growth in FY26 to be between 4% and 8%, while its EBITDA is seen growing between 10% and 14% during the new financial year.

Shares of food delivery aggregator Swiggy Ltd. fell 5% today, after its shareholder lock-in period came to an end. According to a note from Nuvama Alternative & Quantitative Research, as many as 189.8 crore shares of Swiggy will become eligible for trading as its six months and beyond shareholder lock-in comes to an end today. The number of shares that become eligible to trade, amount to 85% of the company's total outstanding equity.

Tata Motors shares ended 1% lower ahead of its quarterly results. Net profit for the company stood at ₹8,470 crore, while revenue stood at ₹1.19 lakh crore. EBITDA stood at ₹16,992 crore, while EBITDA margin for the quarter stood at 14.2%.

Going ahead, market attention will shift to earnings reports from Hindustan Aeronautics, Eicher Motors, Apollo Tyres, Berger Paints India, Torrent Power, among others.

Additionally, stocks like Tata Motors, Bharti Airtel, among others will also be in the spotlight tomorrow, as these companies reported their Q4 numbers after market hours on Tuesday.

Nagaraj Shetti of HDFC Securities expects the short-term uptrend to remain intact, with the Nifty likely to bounce back from the crucial support levels around 24,500–24,400 in the next few sessions. Immediate resistance is placed at the 24,800 level.

LKP Securities' Rupak De said the index slipped lower as traders booked short-term profits. However, sentiment is likely to remain positive in the near term, despite some profit-taking following the recent sharp rise.

De said the index continues to trade above the short-term moving average, confirming a bullish trend. Additionally, it has been sustaining above the previous consolidation zone.

"In the short term, the index may continue its upward movement with the potential to reach 25,350. On the downside, support is placed at 24,400. A buy-on-dips strategy may be favorable as long as the index remains above this level," he said.

The Nifty Bank index ended the session at 54,940.85, registering a decline of 0.80%. Despite this pullback, the index trades above key moving averages, indicating that the broader uptrend remains intact.

Om Mehra of SAMCO Securities said the recent correction can be attributed to a mean reversion, as the index faced resistance near the upper Bollinger Band on the daily chart.

"Nifty Bank is holding above the mean of a flag pattern on the daily chart, suggesting that the decline remains within a controlled range. The support is placed at the hourly Supertrend, around 54,550. The recent correction appears to be an ordinary consolidation phase rather than a change in trend," Mehra said.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexNifty 50share market todayTrade setup