Raja Venkatraman recommends three stocks for 19 May

Stock Market Recap

On 18 May, domestic equities ended on a weak note as selling pressure in metal, oil-linked, PSU bank and realty stocks weighed on sentiment, while persistent rupee weakness added to the cautious tone. The Sensex slipped 160.73 points, or 0.21%, to close at 75,237.99, while the Nifty fell 46.10 points, or 0.19%, to settle at 23,643.50. Market breadth remained negative, with 2,381 shares declining against 1,631 advancing, underscoring broad-based weakness.

Sectoral performance was subdued. The Nifty Metal index fell nearly 2%, while PSU Bank, Realty and Oil & Gas also logged sharp declines. Midcap and smallcap indices underperformed the benchmarks, highlighting stress in the broader market. The India VIX edged up nearly 1%, signaling elevated volatility. Select pockets, however, offered limited support, with IT, Media and FMCG stocks ending in the green.

Outlook for Trading

On the charts, trends continue to appear more trading-oriented than investment-led. The daily structure shows that the recent rally into a gap zone has contained the downside, but momentum is fading and appears increasingly stretched, which could weigh on sentiment. The uneven close in the Nifty during the May series does not bode well for near-term stability.

Volatility was expected, but the extent of intraday swings has surprised market participants, reinforcing a sense of disappointment in the broader market tone. The ongoing decline over the past week suggests the index is now testing support zones, with May largely characterised by a downward drift that has conditioned participants for sharp moves.

Going forward, the trajectory is likely to depend on foreign institutional flows and the upcoming RBI policy, which could help restore directional bias. From a levels perspective, the Nifty needs to hold above 24,800 (spot) to retain a bullish bias. Hourly momentum indicators suggest continued pressure, with a potential resumption of selling if 23,200 is breached.

For fresh shorts, a sustained break below 23,200 could open the way toward 22,900. However, open interest data suggests a sharp breakdown may be limited once key support levels are tested. With the Nifty closing near the 25,000 max pain level, the week is likely to remain cautious and range-bound.

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

TORNTPOWER (current market price ₹1523.50)

Why it’s recommended: Torrent Power Ltd is one of India's leading private-sector integrated power utilities, operating across power generation, transmission, and distribution. After a strong upmove seen in April the profit booking brought the prices lower to test the cloud support. After spending the last few days in consolidation, the volumes are indicating that it could lead to an upmove. In the recent upmove we can observe that the trends have been consistent, with strong thrust with volumes sparks possibility to head higher. Go long.

Key metrics:

P/E: 29.74

52-week high: ₹1824,

Volume: 761.49K

Technical analysis: Support at ₹1400, resistance at ₹1800.

Risk factors: Heavy reliance on imported LNG for its gas-based generation, volatility in global fuel prices, margin pressures across untied capacities.

Buy : above ₹1530.

Stop loss: ₹1460.

Target price: ₹1680 (2 Months)

MAXHEALTH (current market price ₹1058.55)

• Why it’s recommended: Max Healthcare Institute Ltd (MAXHEALTH) is one of India's largest and most trusted private hospital chains operating a vast network of multi-specialty and super-specialty hospitals. After some consolidation for the last 3 months the stock has shown some strong breakout moving above the Kumo cloud on volumes indicating an onset of some fresh upward movement. Ahead of the numbers are showing some positive strides and could now accelerate. As the Relative Strength Index is crossing above 60 we can see that the opportunity to go long has now arisen.
• Key metrics:
  • P/E: 205.94,
  • 52-week high: ₹8970,
  • Volume: 378.98K.
• Technical analysis: Support at ₹900, resistance at ₹1250.
• Risk factors: Capital-intensive sector, balancing excellent recent cash flow management with several operational, financial, and regulatory risks.
• Buy : above ₹1065
• Stop loss: ₹1020
• Target price: ₹1185 (2 Months)

FEDERALBNK (current market price ₹283.95)

• Why it’s recommended: Federal Bank Ltd is a major Indian private sector bank headquartered in Kochi, Kerala. It provides retail banking, corporate banking, foreign exchange services, and wealth management. The last four days the attempt to pressurize the stock lower does not seem to be working. With the volumes seen in the last few days post the Q4 numbers is indicating a fresh onset of momentum. The support from cloud region highlights the strong potential in the prices. A long body candle seen in the last session is now helping the rise sustain the uncertain environment. With the momentum favouring the long side , consider going long.
• Key metrics:
  • P/E Ratio: 16.96
  • 52-week high: ₹301.75
  • Volume: 7.21M
• Technical analysis: Support at ₹250, resistance at ₹350.
• Risk factors: Closely monitored by rating agencies for vulnerabilities such as asset quality deterioration, narrowing margins, and macroeconomic downturns.
• Buy : above ₹285.
• Stop loss: ₹275.
• Target price: ₹310.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.