Stocks to buy on 22 May: Indian benchmark indices ended marginally lower on Thursday, 21 May, after a volatile session, weighed down by profit-booking in select IT, financial and oil & gas stocks.
The Sensex fell 135.03 points, or 0.18%, to settle at 75,183.36. During the session, the index swung sharply between an intraday high of 75,945.79 and a low of 74,996.78, reflecting heightened market volatility.
The Nifty 50 slipped 4.30 points, or 0.02%, to close at 23,654.70.
Broader markets remained largely rangebound. The BSE SmallCap Select index gained 0.48%, while the MidCap Select index ended nearly flat.
According to market experts, investor sentiment remained cautious amid ongoing concerns surrounding the Middle East conflict, elevated crude oil prices, currency volatility and rising global bond yields.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a muted start for the Indian stock market today. By 7:43 AM, the Gift Nifty was trading around the 23,620.5 level, a discount of 11 points from the Nifty futures’ previous close of 23,631.40.
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 – Aditya Birla Fashion and Retail Ltd, Metro Brands Ltd, Great Eastern Shipping Company Ltd, Samvardhana Motherson International Ltd, and Lumax Industries Ltd.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Aditya Birla Fashion and Retail Ltd: Buy above ₹67 | Stop ₹63 | Target ₹77 (multiday)
Aditya Birla Fashion and Retail (Cmp ₹66.76)
Why it’s recommended: Aditya Birla Fashion and Retail is a prominent Indian fashion and lifestyle company, a subsidiary of the Aditya Birla Group. The stock has been in a decline over the last six months, and the formation of a Cup-and-Handle pattern over the last few days has raised the possibility of an upside move. Looking ahead, the numbers suggest momentum is picking up, and an upward move is possible now. With the midcap index doing well, we could consider going long.
Key metrics:
52-week high: ₹98,
Technical analysis: Support at ₹60 | Resistance at ₹80.
Risk factors: Intensifying retail competition, high vulnerability to economic downturns, margin pressure from aggressive expansions, and reliance on consumer discretionary spending.
Target price: ₹77 (Two months)
Metro Brands Ltd: Buy above ₹1,110 | Stop ₹1,050 | Target ₹1,225 (multiday)
Metro Brands (Cmp ₹1,108.80)
Why it’s recommended: Metro Brands Ltd is one of India’s largest footwear speciality retailers, offering a wide range of branded products for men, women, and children. The power sector is now in demand. After the sharp sell-off, prices appeared to have found strong support at the Kumo cloud region, and the revival from lower levels is highlighting strong upside potential. The Relative Strength Index is rising and has crossed 60 levels, indicating some potential to the upside. One can consider going long.
52-week high: ₹1,340.40,
Technical analysis: Support at ₹1,025 | Resistance at ₹1,250.
Risk factors: Reliance on third-party manufacturers, vulnerability to retail lease renewals, and intense competition from domestic and international brands.
Target price: ₹1,225 (Two months)
Great Eastern Shipping Company Ltd: Buy above ₹1,725 | Stop ₹1,625 | Target ₹1,925 (multiday)
Great Eastern Shipping Company (Cmp ₹1,719.60)
Why it’s recommended: The Great Eastern Shipping Company Ltd is India’s largest private sector shipping and oilfield services provider. The company operates a diversified modern fleet of crude carriers, petroleum product tankers, gas carriers, and dry bulk vessels to safely transport commodities globally. The stock has been featured in our article before, and it continues to attract demand. After giving a dividend, the trends remain intact. The steady rise in the Relative Strength Index after stabilising at the neutral zone suggests that we could be looking at some upside.
Key metrics:
P/E Ratio: 10.41
Technical analysis: Support at ₹1,605 | Resistance at ₹1,950.
Risk factors: Cyclical shipping charter rates, geopolitical supply chain disruptions driving up operating expenses, and global commodity demand fluctuations
Two stock recommendations by MarketSmith India
Buy: Samvardhana Motherson International Ltd (current price: ₹137)
Why it’s recommended: Strong global auto component player, diversified customer base, presence across multiple geographies, strong relationships with global OEMs, beneficiary of premium vehicle growth, continuous acquisition-led expansion, diversified product portfolio, increasing content per vehicle, growth opportunity in EV segment, strong manufacturing scale, improving operational efficiency, long-term growth visibility, focus on cost optimization, strong export-oriented business, and expansion in non-auto segments.
Key metrics: P/E: 37.17 | 52-week high: ₹138.40 | Volume: ₹875.88
Technical analysis: Cup-with-handle base breakout
Risk factors: High dependence on auto industry cycle, global slowdown affecting vehicle demand, integration risk from acquisitions, forex fluctuation risk, margin pressure from raw material costs, high exposure to overseas markets, customer concentration risk, debt increase from acquisitions, supply chain disruption risk, EV transition uncertainty, geopolitical risks in global operations, slowdown in European auto market, rising labor and logistics costs, semiconductor shortage impact, and cyclical nature of auto demand.
Target price: ₹160 in two to three months
Buy: Lumax Industries Ltd (current price: ₹5,535)
Why it’s recommended: Strong presence in automotive lighting, leading supplier to major OEMs, beneficiary of premium vehicle trend, strong relationship with OEM clients, growing demand for LED lighting, technology tie-up with Stanley Electric, expansion in advanced lighting solutions, consistent revenue growth potential, beneficiary of auto sector recovery, increasing content per vehicle, focus on innovation and design, strong manufacturing capabilities, opportunity from EV segment growth, improving operational efficiency, and growth in passenger vehicle demand.
Key metrics: P/E:44.61 | 52-week high: ₹6,934.50 | Volume: ₹17.46 crore
Technical analysis: Trendline breakout on above-average volume
Risk factors: Dependence on auto industry cycle, high reliance on OEM demand, customer concentration risk, raw material price volatility, margin pressure from competition, slowdown in vehicle sales, technology disruption risk, EV transition changing product demand, supply chain disruption risk, semiconductor shortage impact, high competition in auto ancillaries, limited pricing power with OEMs, economic slowdown affecting auto demand, forex fluctuation risk, and execution risk in capacity expansion.
Target price: ₹6,300 in two to three months
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.
