Best stock recommendations today: MarketSmith India's top picks for 13 May
Best stock recommendations: Discover MarketSmith India's expert top picks for Tuesday, 13 May. Get insights into top-performing stocks and make informed investment decisions.
Stock market update: Nifty 50 rallied nearly 4% on Monday, closing at 24,924, as a ceasefire agreement between India and Pakistan eased geopolitical tensions, lifting investor sentiment. Positive global cues from progress in US-China trade talks further bolstered the market. All major sectors advanced, led by realty, IT, metal, energy, financials, and auto stocks.
The India VIX fell over 14%, signalling heightened investor confidence and reduced market uncertainty.
Two stock recommendations by MarketSmith India for 13 May:
Buy: Network18 Media & Investments Ltd (current price: ₹ 45.20)
● Why it’s recommended: Digital expansion and audience reach, investments in sports broadcasting
● Key metrics: P/E: N/A, 52-week high: ₹ 106, volume: ₹ 24 crore
● Technical analysis: Reclaimed its 50-DMA
● Risk factors: Volatility in advertising revenue, high investment costs, and profitability pressure
● Buy at: ₹ 45.20
● Target price: ₹ 56 in three months
● Stop loss: ₹ 40
Buy: Coal India Ltd (current price: ₹ 395.50)
● Why it’s recommended: Rising coal demand, government support, and monopoly advantage
● Key metrics: P/E: 6.88, 52-week high: ₹ 543.55, volume: ₹ 265 crore
● Technical analysis: 100-DMA retake
● Risk factors: Receivables and credit exposure, challenges to cash flow and liquidity, management, subsidiary defaults:
● Buy at: ₹ 395.50
● Target price: ₹ 455 in three months
● Stop loss: ₹ 368
Read this | Coal India needs a volume surge to fire up growth
How the Nifty 50 performed on 12 May
The benchmark Nifty 50 opened with a strong gap-up on Monday, 12 May, and sustained its upward momentum throughout the session, forming a robust bullish candlestick on the daily chart.
The index decisively breached its immediate resistance at 24,400 and edged closer to the psychological 25,000 mark. Broad-based buying drove gains across all major sectoral and broader market indices, though the Nifty Pharma index underperformed relative to its peers.
Market breadth was positive, with an advance-decline ratio of 8:1, indicating widespread participation in the rally.
From a technical standpoint, Nifty 50 is trading firmly above all key moving averages, underscoring a well-established uptrend. The index is displaying strong bullish momentum on both daily and weekly timeframes, supported by solid volume activity. The relative strength index (RSI) has risen to 58, reinforcing the bullish outlook, while the moving average convergence divergence (MACD) remains in positive territory with a bullish crossover, further affirming the ongoing momentum.
Read this | Asian Paints sees a greener FY26; analysts see red
According to O'Neil’s methodology, Nifty 50 has transitioned from a "Rally Attempt" to a "Confirmed Uptrend." With market sentiment turning increasingly positive, the index appears poised to test the next resistance zone at 25,100–25,200. Immediate support is seen at 24,400, with a potential breakout above 25,000 signalling the start of the next bullish leg.
How did Bank Nifty perform?
Bank Nifty opened with a strong gap-up and maintained its upward trajectory throughout the session, posting a robust gain of 3.34%. The index formed a solid bullish candlestick on the daily chart, underscoring continued strength in the banking space.
It traded within a range of 54,558–55,466 before closing at 55,382. Similarly, Nifty Financial Services (FinNifty) mirrored the positive sentiment, rising 3.90% and reinforcing the sector-wide rally.
From a technical perspective, Bank Nifty found support near its 21-day exponential moving average (EMA) and rebounded sharply, in line with the broader financial sector’s strength. The RSI has turned upward, signalling improved momentum and a shift toward bullish territory. However, the MACD remains in a negative crossover, though still above the central line.
According to O’Neil’s market direction methodology, Nifty Bank has transitioned from an "Uptrend Under Pressure" to a "Confirmed Uptrend." The index is now trading above all key moving averages, reflecting sustained bullish sentiment.
Also read | Muted loan growth at SBI and Kotak Bank reflects caution. Will FY26 see a credit revival?
Looking ahead, the 56,000 level will be a critical resistance to watch. A decisive breakout above this zone could pave the way for further upside toward 57,500–58,000. On the downside, strong support is positioned around 54,000, expected to cushion any near-term pullback.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
topics
