MarketSmith Analyst Raja Venkatraman Recommends Five Stocks for Investors

Indian Markets Under Pressure on 12 May Amid Rising Energy Costs and Foreign Exchange Reserves Concerns

The Indian stock market came under pressure on Monday, 11 May, with both equities and the rupee weakening after Prime Minister Narendra Modi called for measures to conserve fuel, reduce imports, and curb gold purchases. This move was in response to rising energy costs and pressure on foreign exchange reserves. As a result, the Nifty 50 declined by 1.49% to 23,815.85, while the BSE Sensex fell by 1.7% to 76,015.28.

Meanwhile, the rupee weakened sharply, closing at a record low of 95.31 per dollar, down about 0.9% on the day - its steepest single-day decline since 27 March.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Gift Nifty Live Chart Signals Negative Start for Indian Stock Market

The Gift Nifty Live Chart is showing a negative start for the Indian stock market today. By 7:38 AM, the Gift Nifty was trading around the 23,649 level, a discount of 220 points from the Nifty futures' previous close of 23,868.50. According to Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, the markets are likely to witness a cautious start today after Monday's sharp selloff, with Gift Nifty indicating a negative opening near the 23,750 zone.

Global Cues Show Signs of Stabilization

However, global cues are showing signs of stabilization. Asian markets opened higher on Tuesday, with Japan's Nikkei rallying over 400 points and South Korea's Kospi gaining more than 1.3%, as investors attempted to look beyond renewed uncertainty surrounding the fragile US-Iran ceasefire. Sentiment remains sensitive after former US President Donald Trump stated that the truce was on "massive life support," raising concerns over possible further escalation in the region.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

April CPI Inflation Data to be Released Today

For Indian markets, today's major domestic trigger will be the release of April CPI inflation data. The inflation print will be closely tracked as rising crude oil prices continue to fuel concerns around imported inflation, pressure on household consumption, and the RBI's policy outlook going forward.

Stocks to Buy on 12 May

Raja Venkatraman, Co-founder of NeoTrader, and stock research platform MarketSmith India, has recommended buying the following five shares:

JK Lakshmi Cement Ltd

• Buy above ₹688, stop ₹650, target ₹735 (Multiday)
• Why it's recommended: JK Lakshmi Cement Ltd is a prominent Indian cement manufacturer and a part of the esteemed JK Organisation. They are known for manufacturing a variety of cement, ready-mix concrete (RMC), and AAC blocks.
• Key metrics: P/E: 81.36, 52-week high: ₹564.83, Volume: 136.12K
• Technical analysis: Support at ₹630, resistance at ₹750
• Risk factors: Declining profitability, margin shortfall, and increased debt

Hindustan Unilever Ltd

• Buy above ₹2,310, stop ₹2,250, target ₹2,525 (Multiday)
• Why it's recommended: Hindustan Unilever Ltd is India's largest fast-moving consumer goods (FMCG) company, operating primarily in the Home Care, Beauty & Wellbeing, Personal Care, and Foods & Refreshment segments.
• Key metrics: P/E: 49.19, 52-week high: ₹2779.70, Volume: 1.9M
• Technical analysis: Support at ₹2,200, resistance at ₹2,600
• Risk factors: Raw material price volatility and cyclicality, and competition

Fortis Healthcare Ltd

• Buy above ₹980, stop ₹935, target ₹1,098 (Multiday)
• Why it's recommended: Fortis Healthcare Ltd is a leading Indian private, for-profit hospital network headquartered in Gurugram, providing integrated services including quaternary care, orthopedics, cardiology, and oncology.
• Key metrics: P/E Ratio: 450.14, 52-week high: ₹1,105, Volume: 2.57M
• Technical analysis: Support at ₹900, resistance at ₹1,200
• Risk factors: Regulatory and legal risks, high leverage and financial liabilities

Torrent Pharmaceuticals Ltd

• Buy: ₹4,472-₹4,540, target price: ₹5,200 in two to three months, stop loss: ₹4,260
• Why it's recommended: Torrent Pharmaceuticals Ltd has a strong presence in chronic therapy segments and a well-established domestic pharma business, with consistent growth in the Indian formulations market and a strong brand portfolio supported by extensive doctor reach.
• Key metrics: P/E: 64.31, 52-week high: ₹4,555.10, volume: ₹255.68 crore
• Technical analysis: Flat base breakout
• Risk factors: U.S. FDA regulatory risks for plants and products, pricing pressure in the US generics market, dependence on domestic pharma growth, currency fluctuation impact on exports, high competition in key therapy areas, integration risks from acquisitions, litigation and compliance risks, margin pressure from raw material costs, product concentration in select therapies, slow approvals affecting growth visibility, government price control risks in India, and R&D spending pressure on profitability

Max Healthcare Institute Ltd

• Buy: ₹1,030-₹1,045, target price: ₹1,150 in two to three months, stop loss: ₹990
• Why it's recommended: Max Healthcare Institute Ltd has a strong brand in the premium healthcare segment, with consistent growth in occupancy and ARPOB, and follows an asset-light expansion strategy through managed hospitals.
• Key metrics: P/E: 67.43, 52-week high: ₹1,314.30, volume: ₹313.87 crore
• Technical analysis: Reclaimed its 100 DMA on above-average volume
• Risk factors: High dependence on metro city performance, regulatory risks in healthcare pricing, rising employee and doctor costs, expansion execution risks, high capital expenditure requirements, competition from major hospital chains, occupancy slowdown impacting margins, litigation and compliance risks, dependence on skilled medical professionals, insurance pricing pressure affecting profitability, economic slowdown impacting elective procedures, and expensive valuations during weak growth periods