Profitable companies with a high ROCE and a low PE

As it's turning out to be a fantastic day for domestic indices, markets continue to have an overall bearish tone, and buying businesses with great fundamentals at lower valuations makes sense. Continue reading to learn more about such stocks.

On May 16, 2022, the Nifty 50 began modestly higher and jumped in early trade, before stabilising throughout the day and finishing with small gains. The Nifty 50 closed the day at 15,842, up 0.4 per cent. (60 points).

Due to increasing food and gasoline prices, tightening monetary policy, and China's attempt to curb the spread of Covid-19, Asian markets soared on Tuesday.

On Monday, the Dow Jones Industrial Average concluded the day with slight gains, but the S&P 500 gave up all of its gains in the last trading hour. Markets continued to fall as data from the United States and China fuelled fears about the global economy.

The Empire State business conditions index of the New York Fed fell 36.2 points to negative 11.6 in May, while experts anticipated it to fall to 16.5. The Empire State business conditions index of the New York Fed is a measure of the state's manufacturing activity.

The Nifty 50 developed a double bottom pattern, but immediate resistance was set around 16,090. Furthermore, in order to rise further towards the critical resistance levels of 16,200 to 16,400, the Nifty 50 must convincingly surpass 16,090 on a closing basis.

However, the Nifty 50's 50-Day Exponential Moving Average (EMA) and 200-Day EMA are about to cross. If the 50-Day EMA crosses over the 200-Day EMA from above, bearishness in the markets is expected to worsen. However, for the time being, the levels of 15,700 to 15,850 would provide sturdy support.