Best stock recommendations today: MarketSmith India's top picks for 12 May
Summary
Best stock recommendations: Discover MarketSmith India's expert top picks for Monday, 12 May. Get insights into top-performing stocks and make informed investment decisions.Stock market update: The Nifty 50 dropped 1.10% on Friday as escalating tensions at the border, following Indian missile strikes and Pakistani retaliation, spooked investors and triggered a broad market sell-off. Banking, financials, energy, and realty stocks bore the brunt, as geopolitical instability fuelled a risk-off sentiment across equities, currency, and bond markets.
Two stock recommendations by MarketSmith India for 12 May:
Buy: Titan Co Ltd (current price: ₹ 3,510.30)
● Why it’s recommended: Strong Brand Portfolio, Network expansion and omni channel strategy, Robust Q4 Numbers.
● Key metrics: P/E: 90,, 52-week high: ₹ 3,867, volume: ₹2,289 crore
● Technical analysis: Trending above all key moving averages, Downward slopping trendline breakout.
● Risk factors: Dependence on Jewellery segment, Volatility in Gold Price, Economic Slowdown, Market Risk
● Buy at: ₹ 3,510.30
● Target price: ₹ 4,100 in three months
● Stop loss: ₹ 3,240
Read this | What higher gold prices have meant for Titan’s Q4 performance
Buy: Garden Reach Shipbuilders & Engs (current price: ₹ 1,795)
● Why it’s recommended: Robust order book and defence contract, International Export Orders, Diversification, Strong institutional holding.
● Key metrics: P/E: 52.30, 52-week high: ₹ 2,833, volume: ₹ 687 Crore
● Technical analysis: Trending above all key moving averages, Improved momentum
● Risk factors: Heavy dependence of govt order, Margin Pressure, Technological Obsolescence
● Buy at: ₹ 1,795
● Target price: ₹ 2,330 in three months
● Stop loss: ₹ 1,620
How the Nifty 50 performed on 9 May
The Nifty 50 opened weak on Friday, 9 May, briefly dipping below the psychological 24,000 mark before finding support around the 21-day EMA at 23,900. It managed to close above 24,000, forming a bearish candlestick with a lower high and lower low structure, indicating sustained selling pressure.
All major sectoral indices ended in the red, dragging broader market segments lower, with the advance-decline ratio at 1:2, reflecting weak market breadth. The India VIX surged over 18% during the week, underscoring heightened risk aversion.
On a weekly basis, the index fell 1.30% but held above its 50-week moving average, providing a key support level. Technically, the Nifty 50 hovered around its 200-DMA, suggesting a phase of sideways consolidation within the 23,900–24,500 range.
Momentum indicators paint a mixed picture:
RSI has started to decline, hovering around the 54–55 zone, indicating weakening momentum.
MACD registered a negative crossover, although it remains above the zero line, signalling a neutral-to-cautious short-term outlook.
According to O'Neil’s methodology, the Nifty 50 has moved from a "Rally Attempt" to a “Confirmed Uptrend" status.
Immediate support lies at 23,900, with stronger support at 23,700. On the upside, resistance is expected at 24,500. A decisive break below 23,900 could accelerate downside momentum in the near term.
How did Bank Nifty perform?
Bank Nifty opened on a weak note and declined by approximately 1.42% on Friday, forming a bearish candlestick with a lower high and lower low price structure. The index breached its 21-day moving average and closed below it, reflecting sustained selling pressure. During the session, it traded within a range of 54,054 to 53,483 before settling at 53,595. FinNifty also exhibited similar weakness, ending the day with a loss of 1.84%.
On a weekly basis, this major sectoral index extended its decline, losing around 2.75% and forming a bearish candle on the weekly chart, suggesting a continuation of the corrective phase.
From a technical perspective, Bank Nifty has slipped below its 21-day moving average, indicating short-term weakness. The recent price action suggests a phase of consolidation, with limited directional strength. The Relative Strength Index (RSI) has turned lower and currently hovers around the 52 mark, signalling weakening momentum. Moreover, the Moving Average Convergence Divergence (MACD) has formed a negative crossover, reinforcing a near-term shift toward a cautious or neutral bias.
According to O'Neil’s methodology of market direction, Nifty Bank transitioned from an "Uptrend Under Pressure" to a “Confirmed Uptrend".
Also read | Godrej Consumer’s recovery hinges on premium shift, international play
Currently, the index is trading with a negative bias and closed near its 21-day moving average on Friday. Going forward, the 53,500–53,400 zone will be crucial to watch. A sustained move below this support area could intensify bearish momentum, potentially dragging the index towards the 52,000 level in the coming sessions.
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.
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