Raja Venkatraman, MarketSmith recommend five stocks for 21 May

Stocks to buy on 21 May: Indian benchmark indices Sensex and Nifty 50 ended marginally higher on Wednesday, 20 May, supported largely by gains in Reliance Industries shares.

The BSE Sensex rose 118 points, or 0.16%, to close at 75,318.39, while the NSE Nifty 50 gained 41 points, or 0.17%, to settle at 23,659.

Broader markets outperformed the frontline indices, with the BSE 150 Midcap index advancing 0.51%, while the BSE 250 Smallcap index edged up 0.09%.

The wealth of investors surged by over ₹1 lakh crore in just one trading session, pushing the total market capitalisation of companies listed on the BSE to exceed ₹461 lakh crore, up from ₹459.65 lakh crore in the last trading session.

What Gift Nifty live chart signals?

The Gift Nifty Live Chart shows a negative start for the Indian stock market today. By 7:47 AM, the Gift Nifty was trading around the 23,790.5 level, a premium of 122 points from the Nifty futures’ previous close of 23,668.50.

Decoding the impact of Gift Nifty live chart and other triggers on Dalal Street, Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, said that the Indian equity markets are likely to begin today’s session on a strong bullish note, supported by firm global cues, easing geopolitical anxiety, and improving risk sentiment across global equities. Gift Nifty is indicating a sharply positive opening near the 23,894 zone, while broader Asian markets are also witnessing strong momentum following a powerful rebound on Wall Street overnight.

Global sentiment improved significantly after fresh indications emerged that geopolitical tensions in the Middle East could gradually ease. Remarks from Donald Trump indicating that negotiations with Iran were approaching the “final stages” strengthened hopes of a possible diplomatic resolution, easing fears over prolonged disruptions to global crude oil supplies that had intensified since the onset of the US–Iran conflict. As a result, crude oil prices cooled from recent highs, helping ease inflationary concerns globally and reviving risk appetite across equities.

For Indian markets, the cooling in crude oil prices comes as a major relief after recent sessions dominated by inflation fears and geopolitical uncertainty. Lower oil prices could help reduce immediate pressure on import costs, inflation expectations, and corporate margin concerns, especially for sectors sensitive to energy costs.

Stocks to buy today

Regarding stocks to buy today — Raja Venkatraman is Co-founder of NeoTrader, and stock research platform MarketSmith India, recommended buying these five shares - Indigo Paints Ltd, ABB India Ltd, Timken India Ltd, Godawari Power and Ispat Ltd, and CG Power and Industrial Solutions Ltd.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman

Indigo Paints Ltd: Buy above ₹985, stop ₹940, target ₹1,090(Multiday)

Indigo Paints (current market price ₹983.75)

Why it’s recommended: Indigo Paints is one of India’s fastest-growing, debt-free decorative paint companies, manufacturing a diverse range of interior/exterior emulsions, enamels, wood coatings, and waterproofing solutions. After some sharp decline seen over the last few months the stock has shown a nice rounding pattern recovery and the momentum is also aiding the prices to step higher. As oil prices continue With the midcap index doing well we could look to go long.

Key metrics:

P/E: 10.41

Volume: 140.59K

Technical analysis: Support at ₹915, resistance at ₹1,210.

Risk factors: Structural, operational, and macroeconomic risks, most notably intense competition from well-capitalised giants.

Buy : above ₹985.

Stop loss: ₹940.

Target price: ₹1,090 (2 Months)

ABB: Buy above ₹6,625, stop ₹6,400, target ₹7,250 (Multiday)

ABB (current market price ₹6,605)

Why it’s recommended: ABB (formerly ASEA Brown Boveri) is a Swiss-Swedish multinational corporation headquartered in Zurich, Switzerland, recognized as a global technology leader in electrification and automation. Power sector is now in demand and . After the sharp sell off the prices seemed to have encountered strong supports at the Kumo cloud region and the revival from lower levels is highlighting strong upside. The Relative Strength Index is reviving from 40 levels , we can see that the opportunity to go long has now emerged.

Key metrics:

P/E: 91.07,

52-week high: ₹7,824.95,

Volume: 546.49K.

Risk factors: margin pressure from raw material inflation, intense global competition, supply chain disruptions.

Buy : above ₹6,625

Stop loss: Rs 6,400

Target price: ₹7,250 (2 Months)

Timken India Ltd: Buy above ₹3,660, stop ₹3,550, target ₹3,985 (Multiday)

Timken India (current market price ₹3,656.20)

Why it’s recommended: Timken India Ltd is a subsidiary of The Timken Company, a 125-year-old US-based global technology leader in engineered bearings and industrial motion products. The stock has been in a steady trend forming higher lows through the year. The dip into the strong support region attracted some buying each time thus indicating that the bias is positive. With some spotlight on the sector the breakout seen post consolidation is some hint from the Relative Strength Index after stabilising at the neutral zone suggests that we could be looking at some upside.

Key metrics:

P/E Ratio: 69.23

52-week high: ₹3,675

Volume: 633.79K

Technical analysis: Support at ₹3,450, resistance at ₹3850.

Risk factors: premium valuation leaves limited room for error amidst cyclical demand in the auto-ancillary and industrial.

Buy : above ₹3,660

Stop loss: ₹3,550.

Target price: ₹3,985.

Two stock recommendations by MarketSmith India

Buy: Godawari Power and Ispat Ltd (current price: ₹306)

Why it’s recommended: Strong integrated steel & power business, captive iron ore and coal linkages, healthy operating margins, consistent profit growth, strong cash flow generation, low debt/improving balance sheet, beneficiary of infrastructure spending, capacity expansion opportunities, cost advantage from backward integration, strong pellet and sponge iron demand, export opportunity in steel products, efficient power generation support, improving return ratios (ROE/ROCE), dividend-paying track record, and focus on value-added steel products.

Key metrics: P/E: 24.14, 52-week high: ₹320.00, volume: ₹1,789.17

Technical analysis: Cup-with-handle base breakout

Risk factors: Cyclical steel industry risk, volatility in steel prices, raw material price fluctuations, dependence on infrastructure demand, regulatory and mining policy risks, environmental compliance costs, export/import duty changes, high competition in steel sector, slowdown in construction activity, power and energy cost volatility, capacity expansion execution risk, commodity market downturn impact, earnings may remain highly cyclical, global recession affecting metal demand, and lower realisations hurting margins.

Buy: ₹303–308

Target price: ₹380 in two to three months

Stop loss: ₹283

Buy: CG Power and Industrial Solutions Ltd (current price: ₹853)

Why it’s recommended: Strong brand in electrical equipment, backing from Murugappa Group, improving corporate governance, strong order book growth, beneficiary of capex cycle, rising demand from railways & power sector, expansion in semiconductor business, healthy margin improvement, strong turnaround in profitability, debt-free or low-debt balance sheet, diversified industrial product portfolio, export growth opportunities, strong execution capability, growth in energy transition sector, and increasing focus on high-value products

Key metrics: P/E:105.67, 52-week high: ₹886.80, volume: ₹3,312.05 crore

Technical analysis: Reclaimed its 21-DMA on above-average volume

Risk factors: Dependence on industrial capex cycle, execution delays in large orders, raw material cost volatility, high competition in electrical sector, semiconductor project execution risk, slowdown in infrastructure spending, margin pressure from input costs, cyclical demand from industrial sector, regulatory and policy risks, export demand fluctuations, working capital requirement risk, technology upgradation costs, valuation may remain expensive, power sector slowdown impact, and global economic weakness affecting demand.

Buy at: ₹844–857

Target price: ₹980 in two to three months

Stop loss: ₹795

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.