Raja Venkatraman recommends three stocks for 21 May

Stock Market Recap

On 20 May, Indian markets ended in the red as weakness across metal, oil-linked, PSU bank and realty stocks dragged benchmarks lower, while persistent rupee depreciation continued to weigh on investor sentiment.

The Sensex slipped 160.73 points, or 0.21%, to close at 75,237.99, while the Nifty declined 46.10 points, or 0.19%, to settle at 23,643.50. Market breadth remained weak, with 2,381 stocks declining against 1,631 advancing, underscoring broad-based selling pressure.

Sectoral indices mirrored the downturn, with Nifty Metal falling nearly 2%, while PSU Bank, Realty and Oil & Gas also posted sharp declines. Midcap and smallcap indices underperformed the benchmarks, highlighting continued stress in the broader market. India VIX edged up nearly 1%, signalling elevated volatility ahead.

However, select pockets offered some resilience, with IT, Media and FMCG stocks ending in positive territory, providing limited support in an otherwise cautious and subdued trading session..

Outlook for Trading

Bank Nifty has been weaker relative to the Nifty, with sustained bearish pressure on every rally suggesting a downward bias as the index struggles to build upward momentum. While sector rotation is underway, the divergence between indices is becoming more pronounced.

HDFC Bank has remained under considerable stress following its Q4 results, and this weakness is visible in Bank Nifty’s overall price action. Although earlier moves had indicated a drift towards the upper end of the resistance zone as indicators showed signs of fatigue, the recent recovery attempts have begun to lose momentum, with selling pressure emerging at higher levels. In the absence of fresh triggers, the index continues to exhibit range-bound behaviour, limiting the scope for a sharp recovery.

Turning to the broader market, the Nifty shows relatively better stock-specific participation even as index-level momentum remains subdued. Broader equities continue to display pockets of strength, sustaining selective bullish sentiment despite the lack of a decisive trend.

Overall, the charts indicate that prices have slipped into consolidation, with the current setup facing resistance at higher levels. As previously noted, a sustained move below 24,000 on the Nifty would likely invite renewed bearish pressure. Until then, higher levels are increasingly being used for short-term selling.

On Bank Nifty, the 53,800 level remains a key downside marker on spot, while 56,500 is seen as an important resistance zone. Unless the index decisively clears 54,500, stock-specific action is likely to dominate, with divergent trends across constituent stocks.

PSU banks and private banks are moving in a subdued and uneven manner, and erratic behaviour in private sector names is further limiting recovery in Bank Nifty. This weakness may spill over into related sectors such as autos, realty and financial services. Despite the overall muted tone, select pockets continue to attract buying interest, offering intermittent support.

The inability of Bank Nifty to decisively reclaim the 54,000–54,500 zone suggests that the index remains a key driver of near-term market direction. Until this changes, broader trends are likely to remain fragmented.

At the same time, the Nifty continues to struggle near the 23,800 resistance level, which also aligns with key positioning zones and is acting as a cap on upside momentum. Open interest data further reinforces resistance at higher levels, indicating limited follow-through unless a breakout occurs.

Traders should closely monitor Thursday’s 30-minute opening range, as a sustained move above this band could act as a trigger for fresh long positions.

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

INDIGOPNTS (current market price ₹983.75)

• Why it’s recommended: Indigo Paints Ltd (NSE: INDIGOPNTS) 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
  • 52-week high: ₹220.59,
  • Volume: 140.59K
• Technical analysis: Support at ₹915, resistance at ₹1210.
• Risk factors: Structural, operational, and macroeconomic risks, most notably intense competition from well-capitalized giants.
• Buy : above ₹985.
• Stop loss: ₹940.
• Target price: ₹1090 (2 Months)

ABB (current market price ₹6,605)

• Why it’s recommended: ABB Ltd (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: ₹7824.95,
  • Volume: 546.49K.
• Technical analysis: Support at ₹6000, resistance at ₹1250.
• Risk factors: margin pressure from raw material inflation, intense global competition, supply chain disruptions.
• Buy : above ₹6625
• Stop loss: ₹6400
• Target price: ₹7250 (2 Months)

TIMKEN (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: ₹3675
  • Volume: 633.79K
• Technical analysis: Support at ₹3450, resistance at ₹3850.
• Risk factors: premium valuation leaves limited room for error amidst cyclical demand in the auto-ancillary and industrial
• Buy : above ₹3660
• Stop loss: ₹3550.
• Target price: ₹3985.

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.