Stocks to buy on 26 May: Indian benchmark indices ended sharply higher on Monday, with the Sensex and Nifty gaining more than 1%, as a steep decline in crude oil prices and strong global market cues lifted investor sentiment. Optimism surrounding ongoing US-Iran negotiations, which could ease geopolitical tensions and improve energy supply prospects, further supported the rally.
Market sentiment was also aided by the Indian rupee’s appreciation against the US dollar and robust buying interest in banking and financial stocks, traders said.
The Sensex climbed 1,073.61 points, or 1.42%, to close at 76,488.96. During the session, the index surged as much as 1,143.72 points, or 1.51%, to touch an intraday high of 76,559.07.
Broader market participation remained positive, with 2,785 stocks advancing, 1,535 declining, and 211 remaining unchanged on the BSE.
The Nifty 50 rallied 312.40 points, or 1.32%, to settle at 24,031.70, reclaiming the 24,000 mark amid broad-based buying across sectors.
What Gift Nifty live chart signals?
The Gift Nifty Live Chart shows a muted start for the Indian stock market today. By 7:28 AM, the Gift Nifty was trading around the 24,057 level, a discount of 6 points from the Nifty futures’ previous close of 24,063.
Decoding the impact of Gift Nifty live chart and other triggers on Dalal Street, Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth, Indian equity markets are likely to open on a cautiously positive note today, with Gift Nifty indicating a marginally firm start near the 24,058 zone. However, despite supportive global cues and easing crude oil prices, the broader market structure appears increasingly fragile as traders enter a high-volatility monthly F&O expiry session.
Global sentiment improved overnight after fresh optimism emerged around potential progress in US-Iran negotiations. Comments from US President Donald Trump suggesting that discussions with Iran were “proceeding nicely” triggered a sharp correction in crude oil prices and improved overall global risk appetite. At the same time, hopes of de-escalation in West Asia reduced immediate fears around disruptions in the Strait of Hormuz, a critical route for global energy supplies.
Asian markets reacted positively to the developments. South Korea’s Kospi surged nearly 3% after resuming trade post-holiday, while Dow futures jumped more than 400 points as falling oil prices supported expectations of easing inflationary pressure globally.
For Indian markets, softer crude prices continue to remain a key macroeconomic positive. Lower oil prices directly ease concerns around imported inflation, fiscal stress, and pressure on corporate input costs for an oil-import-dependent economy like India. This may continue supporting selective buying interest in sectors such as banking, automobiles, paints, logistics, and industrials.
However, despite the positive global backdrop, today’s session carries elevated structural risk because of the monthly Nifty F&O expiry. Expiry-driven positioning is likely to dominate intraday market behaviour far more than pure fundamentals.
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 – JSW Steel Ltd, Bank of Baroda, Adani Energy Solutions Ltd, ION Exchange (India) Ltd, and Fedbank Financial Services Ltd.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
JSW Steel Ltd (Cmp ₹1,289.40)
Why it’s recommended: JSW Steel operates in a cyclical and capital-intensive sector, exposing it to volatile raw material costs, currency fluctuations, regulatory risks, and debt burdens. These elements directly dictate profit margins and long-term financial stability. The stock has made a V-shaped recovery over the last few weeks, but has not been able to sustain an upward move. The consolidation at the Tenkan Sen augurs well for prices, which could now open the door to a strong possibility of upside. With the metal sector performing well, we could consider going long.
Technical analysis: Support at ₹1,240, resistance at ₹1,450.
Risk factors: Volatile raw material costs, currency fluctuations, regulatory risks, and debt burdens.
Target price: ₹1,410 (2 Months)
Bank of Baroda (Cmp ₹272.25)
Why it’s recommended: Bank of Baroda is India’s second-largest public sector bank, offering global retail, corporate, and agricultural banking services across 15 countries. After the sharp sell-off from its February highs, prices seemed to be on a path to recovery and have been forming a rounding pattern at lower levels, which has now led to a strong breakout. The Relative Strength Index is heading to cross 60 levels , indicating some potential to the upside. One can consider going long.
Risk factors: Intense deposit competition, economic uncertainties that could impact its international book, and asset quality risks
Target price: ₹288 (2 Months)
Adani Energy Solutions(Cmp ₹1,404.30)
Why it’s recommended: Adani Energy Solutions is India’s largest private power transmission and distribution company. The stock has been rising for the last 8 weeks. After some profit booking, the prices have now shown some support emerging from the Tenkan Sen, signs of bottoming out. With a strong breakout on the daily charts above the cloud, we can now look to invest for the short term as momentum is seen picking up. 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: 295.33
Technical analysis: Support at ₹1,250, resistance at ₹1,750.
Risk factors: Highly leveraged balance sheet, vulnerability to regulatory and tariff revisions, and large debt requirements for capital-intensive infrastructure
Two stock recommendations by MarketSmith India
Buy: ION Exchange (India) Ltd (current price: ₹408)
Why it’s recommended: Strong presence in water treatment solutions, beneficiary of rising water scarcity, diverse industrial customer base, growing demand from government projects, strong execution capability, recurring revenue from services segment, increasing environmental compliance demand, expansion in wastewater treatment market, strong export opportunities, asset-light service business support, beneficiary of industrial capex growth, long-term growth visibility in water sector, focus on sustainable solutions, diversified product and technology portfolio, and opportunity from desalination projects.
Key metrics: P/E: 30.08, 52-week high: ₹580.75, volume: ₹12.67
Technical analysis: Reclaimed its 21-DMA on above-average volume
Risk factors: Execution delays in large projects, dependence on industrial capex cycle, working capital intensive business, slow government order execution, margin pressure from raw material costs, high competition in water treatment sector, order inflow volatility, regulatory and environmental policy risks, economic slowdown affecting industrial demand, project-based revenue fluctuations, client concentration in certain sectors, rising technology investment needs, export demand uncertainty, delayed payments from government entities, and valuation risk during weak order growth.
Target price: ₹470 in two to three months
Fedbank Financial Services Ltd (current price: ₹165)
Why it’s recommended: Strong parentage from Federal Bank, focus on retail lending segment, diversified loan portfolio, growth in MSME financing, expanding branch network, beneficiary of rising credit demand, secured lending business model, improving asset quality trends, strong presence in semi-urban markets, opportunity in underpenetrated segments, technology-driven lending processes, cross-selling support from Federal Bank, growth potential in gold loans, increasing financial inclusion opportunity, and scalable business model.
Key metrics: P/E:16.89, 52-week high: ₹178.48, volume: ₹56.31 crore
Technical analysis: Broke out of Cup-with-handle base
Risk factors: Rising NPAs during economic slowdown, dependence on borrowing costs, intense competition in NBFC sector, regulatory tightening risk, margin pressure from higher interest rates, credit risk in MSME segment, liquidity and funding risk, slower loan growth risk, economic slowdown affecting collections, dependence on rural and semi-urban demand, asset-liability mismatch risk, higher provisioning requirements, market share pressure from banks, technology and cybersecurity risks, and valuation risk in weak credit cycle.
Target price: ₹200 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.
