Stocks to buy on 20 May: Indian benchmark indices, Sensex and Nifty 50, ended marginally lower on Tuesday, 19 May, amid profit booking, as investors remained cautious amid mixed global signals, lingering uncertainty around the US-Iran conflict, elevated crude oil prices, and continued weakness in the rupee.
The BSE Sensex declined 114 points, or 0.15%, to settle at 75,200.85, while the NSE Nifty 50 slipped 32 points, or 0.14%, to close at 23,618.
Although Brent crude prices fell nearly 2% on growing optimism over a possible US-Iran peace deal, sentiment remained under pressure due to persistent concerns surrounding the Indian currency. According to PTI, the rupee closed at a fresh record low of 96.52 against the US dollar on Tuesday.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a negative start for the Indian stock market today. By 7:33 AM, the Gift Nifty was trading around the 23,448.5 level, a discount of 164 points from the Nifty futures’ previous close of 23,612.
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 cautious to bearish note, with Gift Nifty indicating a weaker opening near the 23,480 zone amid negative global cues and rising geopolitical uncertainty.
Broader Asian markets opened under pressure after renewed concerns emerged around potential escalation in the Middle East. Investor sentiment weakened following US President Donald Trump’s statement that he was “an hour away” from authorising military action against Iran before eventually postponing the decision. The development has once again revived fears surrounding geopolitical instability, global energy supply disruptions, and volatility in crude oil markets.
Regional indices reflected the risk-off sentiment sharply, with Japan’s Nikkei declining nearly 1.3% while South Korea’s Kospi slipped over 1.6% in early trade. Weakness in global equities also intensified after the S&P 500 registered its third consecutive losing session overnight, as rising US bond yields continued to pressure broader risk assets and raise concerns over tighter global financial conditions.
For Indian markets, elevated bond yields and persistently high crude oil prices remain key macro headwinds. Rising global yields are reducing appetite for emerging-market equities, while geopolitical uncertainty continues to keep energy prices volatile — a major concern for an oil-import-dependent economy like India’s. Sustained pressure on crude oil and the rupee could continue weighing on inflation expectations, corporate margins, and foreign institutional flows.
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 – Gujarat State Fertilizers & Chemicals Ltd, Varun Beverages Ltd, Power Grid Corporation of India Ltd, Radico Khaitan Ltd, and Kirloskar Pneumatic Co. Ltd.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Gujarat State Fertilizers & Chemicals Ltd : Buy above ₹179, stop ₹168 target ₹198(Multiday)
Gujarat State Fertilizers & Chemicals Ltd (current market price ₹176.44)
Why it’s recommended: Gujarat State Fertilizers & Chemicals Ltd (GSFC) is a leading Indian publicly-traded manufacturer of fertilizers and industrial chemicals. A V-shaped recovery seen over the last few days have invited some steady buying interest that has led to some steady consolidation and a strong long body candle seen on Tuesday augurs well for the prices. The Relative Strength Index too is showing a new uptick indicating a potential to move higher. With the midcap index doing well we could look to go long.
Technical analysis: Support at ₹166, resistance at ₹210.
Risk factors: Subsidy policy dependence, working capital & liquidity stress and global price fluctuations.
Target price: ₹198 (2 Months)
Varun Beverages Ltd: Buy above ₹518, stop ₹490 target ₹570 (Multiday)
Varun Beverages Ltd (current market price ₹514.80)
Why it’s recommended: Varun Beverages Ltd (VBL) is one of the largest franchise bottlers of PepsiCo in the world outside the US. VBL produces, bottles, and distributes a wide range of carbonated soft drinks, non-carbonated beverages, and packaged drinking water. With the IPL season in full flow we can see that the positive impact is showing in the move. This also prompted the company to offer dividend. As the Relative Strength Index is crossing above 60, we can see that the opportunity to go long has now arisen.
Technical analysis: Support at ₹900, resistance at ₹1,250.
Risk factors: Commodity inflation, regulatory challenges, and extreme weather disruptions.
Power Grid Corporation of India Ltd: Buy above ₹301, stop ₹285, target ₹337 (Multiday)
Power Grid Corporation of India Ltd (current market price ₹298.60)
Why it’s recommended: Power Grid Corp. of India Ltd (POWERGRID) is an Indian central public sector undertaking under the Ministry of Power, headquartered in Gurugram. The last few days the selling pressure persisted to push the prices lower to test the cloud support region. With a set of disappointing numbers, the price action is indicating that the negative newsflow is priced in. As the sector is in prominence the lower levels could be a could point to enter as the support and some hint from the Relative Strength Index suggests that we could be looking at some upside.
Key metrics:
P/E Ratio: 14.82
Technical analysis: Support at ₹290, resistance at ₹375.
Risk factors: Closely monitored by rating agencies for vulnerabilities such as asset quality deterioration, narrowing margins, and macroeconomic downturns.
Two stock recommendations by MarketSmith India
Buy: Radico Khaitan Ltd (current price: ₹3,600)
Why it’s recommended: Strong premium liquor portfolio, leading IMFL and whisky brands, consistent revenue growth, improving operating margins, strong distribution network, growing premiumization trend, high brand recall in India, expansion in international markets, stable cash generation, capacity expansion supports growth, better product mix over time, increasing urban consumption trend, relatively resilient alcohol demand, experienced management team, and strong presence in CSD channel.
Key metrics: P/E: 76.04, 52-week high: ₹3,673.90, volume: ₹276.30
Technical analysis: Cup-with-handle base breakout
Risk factors: High dependence on liquor regulations, frequent state policy changes, heavy taxation on alcohol, raw material price volatility, intense competition from peers, premium segment slowdown risk, state-wise supply disruptions, advertising restrictions limit branding, debt increase from expansion plans, changing consumer preferences, margin pressure from input costs, regulatory bans or duty hikes, dependence on key brands, currency risk in exports, and ESG and social perception concerns
Target price: ₹4,200 in two to three months
Buy: Kirloskar Pneumatic Co. Ltd (current price: ₹1,580)
Why it’s recommended: Strong industrial engineering presence, diversified product portfolio, growing demand from infrastructure sectors, strong compressor business positioning, beneficiary of capex cycle revival, healthy order book visibility, export opportunities improving, established brand reputation, presence across multiple industries, improving operational efficiency, long industry experience, potential margin improvement scope, industrial automation demand support, strong aftermarket/service revenue, and relatively lower competition in niche areas
Key metrics: P/E:37.70, 52-week high: ₹1,613.80, volume: ₹39.65 crore
Technical analysis: Cup base breakout
Risk factors: Cyclical industrial demand exposure, dependence on capex spending, raw material cost volatility, order execution delays, competitive pressure from global players, slowdown in manufacturing sector, working capital intensive business, margin pressure during weak demand, export market uncertainty, customer concentration risk, currency fluctuation impact, technology upgradation requirements, economic slowdown affects orders, limited scalability versus larger peers, and project-based revenue volatility
Target price: ₹1,820 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.
