MarketSmith and Raja Venkatraman Recommend Four Stocks to Watch on May 18

Indian Stock Market Snaps Two-Session Gaining Streak

The benchmark equity indices Sensex and Nifty 50 experienced a decline on Friday, 15 May, due to weak global cues, surging crude oil prices, and a record low rupee against the US dollar. The BSE Sensex declined by 161 points, or 0.21%, to close at 75,237.99, while the NSE Nifty 50 slipped 46 points, or 0.19%, to settle at 23,643.50.

Sector-Wise Performance

The selling pressure remained broad-based, with midcap and smallcap stocks also ending lower. The BSE Midcap index fell 0.48%, while the BSE Smallcap index declined 0.37%. In terms of sectors, stocks in metal, oil & gas, PSU banks, real estate, energy, and commodities experienced significant downturns of over 1% each, while the IT index rose by more than 1%.

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

Investor Wealth Declines

Investor wealth decreased by over ₹2 lakh crore in just one trading session, causing the total market capitalisation of BSE-listed companies to drop to approximately ₹460.5 lakh crore from around ₹463 lakh crore in the last session.

Weekly Performance

For the week, the Sensex fell by 2.7%, and the Nifty 50 dropped by 2.2%, bringing an end to their two-week streak of gains.

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

Stock Recommendations

Despite the decline in the market, several stocks are expected to perform well in the coming days. Raja Venkatraman, Co-founder of NeoTrader, and stock research platform MarketSmith India, recommended buying the following five shares:

• Latent View Analytics Ltd: Buy above ₹310, stop ₹287, target ₹345 (Multiday)
• Amber Enterprises India Ltd: Buy above ₹8,480, stop ₹8,300, target ₹8,950 (Multiday)
• Graphite India Ltd: Buy above ₹780, stop ₹740, target ₹855 (Multiday)
• Shreeji Shipping Global Ltd: Buy at ₹427–433, target ₹500 in two to three months, stop loss ₹415
• Graphite India Ltd: Buy at ₹767–779, target ₹890 in two to three months, stop loss ₹720

These stocks are expected to benefit from their strong fundamentals, growth opportunities, and momentum indicators. However, investors should be aware of the risks associated with these stocks, including their dependence on certain industries, raw material price volatility, and cyclical nature.