MarketSmith Experts Identify Five Stocks to Watch on April 21

Stocks to Buy on 21 April: Market Remains Uncertain Amid Geopolitical Tensions

The Indian stock market finished relatively unchanged on Monday, April 20, as gains driven by earnings in the banking sector were countered by worries that the ceasefire between the U.S. and Iran might not last. The U.S. captured an Iranian cargo ship that attempted to breach its blockade, while Iran promised to respond, as efforts to establish a more permanent peace in the area seemed to be in jeopardy.

Market Overview

The Nifty 50 gained 0.05% to reach 24,364.85, while the Sensex rose 0.03% to 78,520.3. Both indices concluded at their highest closing points since March 6. The Gift Nifty Live Chart is showing a flat start for the Indian stock market today, with the Gift Nifty trading around the 24,391 level, a premium of 55.35 points from the Nifty futures' previous close of 24,335.65.

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Global Cues Remain Mixed

Global cues remain mixed and somewhat fragile. US markets closed lower in the previous session following a renewed spike in geopolitical tensions after a turbulent weekend that cast uncertainty over US–Iran peace negotiations. This has kept risk sentiment cautious at a broader level. At the same time, Asian markets are showing resilience. Japan's Nikkei is trading higher by over 400 points, while South Korea's Kospi continues to outperform, supported by strong earnings expectations and has even moved past its previous record highs.

Earnings Season Gathers Pace

Back home, today's session is likely to be influenced significantly by stock-specific action as the earnings season gathers pace. Key companies in focus include HCL Technologies, Nestle India, and Tata Elxsi, all of which are scheduled to announce their results. Management commentary, particularly around demand visibility and margin outlook, will be closely tracked and could drive sectoral moves.

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

Stocks to Buy Today

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

Key Recommendations

1. Balrampur Chini Mills Ltd: Buy above ₹520, stop ₹490, target ₹575. The stock has seen steady volumes in recent trading sessions, and a long-bodied candle breaking above the resistance zone near ₹145 suggests a positive price outlook.
2. CESC Ltd: Buy above ₹181, stop ₹168, target ₹205. CESC Limited is India's first fully integrated electrical utility, and the stock has staged a rounding bottom recovery backed by strong buying at lower levels.
3. Bank of Maharashtra: Buy above ₹76, stop ₹71.50, target ₹85. The stock is forming a rounding pattern that is generating steady upward traction, and a surge in the Directional Movement Index (DMI) signals a strong opportunity to initiate a long position.
4. Blackbuck Ltd: Buy ₹612-623, target ₹690 in two to three months, stop loss ₹585. The company has a strong position in digital freight/logistics platform, asset-light, scalable business model, and growing adoption of tech in trucking industry.
5. City Union Bank Ltd: Buy ₹265-267, target ₹310 in two to three months, stop loss ₹245. The bank has consistent growth in revenue & profits, improving asset quality, and stable margins and profitability ratios.