Best stock recommendations today: MarketSmith India’s top picks for 20 May

Two stock recommendations for today by MarketSmith India

GAIL (India) Ltd (current price: ₹189.48)

Why it’s recommended: Investment in renewable energy, international expansion, strong financial performance

Key metrics: P/E: 10.20 | 52-week high: ₹ 246.30 | Volume: ₹274 crore

Technical analysis: Holding above all key moving averages, bullish flag continuation

Risk factors: Pressure on profit margin, segmental loss, regulatory, and operational risk

Buy at: ₹189.48

Target price: ₹218 in three months

Stop loss: ₹175

Rane Holdings Ltd (current price: ₹ 1481.4)

Why it’s recommended: Strong financial performance and growth, robust market position, and growth opportunities

Key metrics: P/E: 91.01 | 52-week high: ₹ 2,458.70 | Volume: ₹2.71 crore

Technical analysis: Reclaimed its 100-DMA

Risk factors: Cyclicality of the automotive sector, limited diversification

Buy at: ₹1,481.4

Target price: ₹1,790 in three months

Stop loss: ₹1,340

Nifty 50: How the benchmark index performed on 19 May 

The Nifty 50 extended its sideways consolidation for a second consecutive session, forming a small bearish candle on the daily chart. Despite this, the broader bullish structure remains intact. Most sectoral indices closed on a flat to mildly positive note. Barring the Nifty IT and FMCG, all sectoral indices ended in the red. On the stock-specific front, TCS, Infosys, Reliance Industries, and ICICI Bank were the key draggers. The broader markets reflected mixed sentiment, with the advance-decline ratio settling around 2:1.

The Nifty 50 remains in a strong uptrend, trading well above its key moving averages on the daily and weekly charts. Momentum indicators support this view, with the RSI hovering around 63, indicating consolidation within a bullish framework. The MACD, though flattened, stays in positive territory and maintains a bullish crossover. These technical signals collectively suggest that the upward momentum is intact, and the current consolidation phase is likely a pause within the broader bullish trend.

According to O’Neil’s methodology of market direction, Nifty50 transitioned from a “Rally Attempt” to a “Confirmed Uptrend”.

On Monday, the index continued its sideways consolidation, closing below 25,000. While the broader bias remains positive, the current price action suggests a consolidation phase, and further range-bound movement cannot be ruled out in the near term. Looking ahead, immediate resistance is expected in 25,200–25,300, while on the downside, initial support is seen around 24,800–24,700, followed by the 21-day moving average, which is currently positioned near 24,400.

How did the Nifty Bank perform?

The Bank Nifty traded in positive territory for most of the session on Monday. However, the index witnessed profit booking near the day’s high. It ended with modest gains of 0.12%, forming a bullish candle with a long upper wick on the daily chart, signalling selling pressure at higher levels. HDFC Bank and PSU Banks outperformed, while ICICI Bank and Axis Bank closed in the red. The Bank Nifty opened at 55,326, moved within a range of 55,695–55,296, and settled at 55,420.

The Bank Nifty continues to trade above all its key moving averages on both the daily and weekly charts and is currently hovering just 1% below its all-time high, reaffirming the strength of its sustained uptrend. On the daily chart, the relative strength index (RSI) has flattened but remains in bullish territory around the 61 mark, suggesting consolidation within strength. Meanwhile, the MACD has exhibited a negative crossover but remains above the zero line, indicating mixed short-term momentum within a broadly positive trend.

According to O’Neil’s methodology of market direction, the Nifty Bank transitioned from an “Uptrend Under Pressure” to a “Confirmed Uptrend”.

The Bank Nifty remains firmly positioned above all its key moving averages, indicating continued bullish momentum. The immediate hurdle is seen near 56,000. A decisive breakout above this zone could pave the way for the next upward move, potentially driving the index toward 57,500–58,000 in the near term. On the downside, the 21-day EMA, currently around 54,300, is expected to provide strong support and absorb any short-term corrective declines.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

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.