Best stocks to buy today: Expert Raja Venkatraman's recommendations for 23 May

Here are two stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Friday, 23 May.

LTFOODS: Buy above 405 and dips to 385 stop 375 target 440-455 

UNOMINDA: Buy CMP and dips to ₹980, stop ₹960 target ₹1125-1150

Stock market today

ndian share markets faced downward pressure yesterday due to global equity tremors, primarily stemming from concerns over the proposed US tax bill and its potential to widen the federal deficit. Adding to the selling pressure was a weakened Rupee, which slipped past the 86 level against the dollar.

Also read: Top three PSU bank stocks below ₹100

The broader Sensex fell 0.79%, losing 644.64 points to settle at 80,951.99. The Nifty 50 dropped 0.82%, or 203.75 points, to close at 24,609.70. The sharp sell-off was more pronounced in the indices than in individual stocks, suggesting mixed trends ahead.

Outlook for trading  

The market's enthusiasm has clearly evaporated. A continuous decline yesterday pushed the market lower, as a lack of interest in upside movement kept participants on the sidelines. Amid persistent uncertainty, key support levels gave way, leading to widespread exits due to the absence of encouraging triggers. Yesterday's sharp fall breached the 24,700 mark, testing 24,500 before a late-day revival.

This fall now hints at a potential further downside if the critical support around 24,500 isn't held. Our analysis of Options data over the past few days has consistently shown stiff resistance at higher levels, keeping bullish expectations in check.

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Chart analysis indicates limited triggers for a market revival, and yesterday's fall broke the initial support at 24,700. We now await more clarity as we head into monthly expiry. Rollover activity has already begun and is expected to accelerate, leading to increased stock-specific action in the derivatives space. Notably, the mid and small-cap segments are showing fair activity, with strong performers attracting genuine buying interest, highlighting ongoing retail participation.

The max pain is currently set at 24,600, and the Options data (PCR at 0.68) suggests selling pressure at every rise. As previously noted, the combination of global tariff threats, cautious investor sentiment, and domestic economic challenges has contributed to recent market volatility.

Despite best intentions, the market is struggling to build enough strength for a sustained upward march. As long as the 24,300 zone holds as a final support, we can expect momentum to rise. The consistent "buy on dips" approach continues to give bullish participants a reason to hold their positions for now. With no clear future course of action, a neutral bias is recommended for market participation.

The current two-phphased trends demand a pragmatic approach to capitalize on market opportunities. While volatility is driven by worrying macro factors and the ongoing results season, sector rotation will be active. Therefore, focus on selecting candidates that demonstrate steady performance from both sides until new signals emerge.

Two stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

LTFOODS (Cmp 402.25)

LTFOODS: Buy above 405 and dips to 385 stop 375 target 440-455 

• Why it’s recommended: LT Foods recently reported Q4 results that met expectations, signaling a recovery in its stock price. The company achieved its highest operating profit in the last five quarters at ₹258.26 crore, alongside a profit after tax of ₹160.52 crore, also a five-quarter high. This performance suggests the company is rebounding from a period of slower growth earlier in the year.
• Key metrics: 
  • P/E: 66, 
  • 52-week high: ₹451, 
  • Volume: 1.31 M.
• Technical analysis: Support at ₹339, resistance at ₹460.
• Risk factors: Inability to manage interest rate payments, Increasing competition and market conditions.
• Buy: above 405 and dips to ₹385.
• Target price: ₹440-455 in 1 month.
• Stop loss: ₹375.

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UNOMINDA (Cmp 1028.50)

UNOMINDA: Buy CMP and dips to ₹980, stop ₹960 target ₹1125-1150

• Why it’s recommended: UNOMINDA has demonstrated strong revenue growth, particularly in its OEM segment, and is expected to continue its upward trajectory. Uno Minda has seen strong momentum in its lighting division, with notable gains in market share over the past few years, particularly in the four-wheeler segment. In the two-wheeler category, the company now commands approximately 30% of the market.
• Key metrics: 
  • P/E: 74.13, 
  • 52-week high: ₹1252.85
  • Volume: 1.13 M.
• Technical analysis: Support at ₹835, resistance at ₹1400.
• Risk factors: Supply chain disruptions, geopolitical turbulence and region wise volumes.
• Buy at: CMP and dips to ₹980.
• Target price: ₹1125-1150 in 1 month.
• Stop loss: ₹960.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.