Stocks to Buy: Analyst Nagaraj Shetti Recommends Sumitomo and Samvardhana Motherson
Indian Stock Market Rises Amid Easing Tensions and Optimism Over US-Iran Deal
The Indian benchmark indices traded higher on Thursday, 21 May, as investors remained optimistic about the possibility of a US-Iran deal to end the Middle East conflict. The easing of crude oil prices boosted investor sentiment, with Brent crude trading near the $106 per barrel mark after plummeting 5.6% in the previous session.
As of 12:22 IST, the Nifty 50 rose 0.24% to 23,715.25, while the Sensex was trading flat at 75,395.04. Market sentiment improved after US President Donald Trump said negotiations with Iran were in their final stages, raising hopes of a possible peace agreement in the region.
Shipping data showed that two Chinese oil tankers exited the Strait of Hormuz on Wednesday, signaling some easing of tensions around global energy supply routes. This development added to the optimism, as investors focused on key corporate earnings announcements.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Company | Previous Close | Current Close | Percentage Change |
|---|---|---|---|
| Sumitomo Chemical India | ₹475.25 | ₹480.50 | 1.1% |
| Samvardhana Motherson International | ₹137.50 | ₹140.25 | 1.8% |
Market analysts remain positive about the Nifty 50, with the underlying trend remaining positive. A decisive move above the crucial hurdle of 23,850-23,900 levels could open sharp upside for the market in the near term. Immediate support is now placed at the 23,500 levels.
Key Recommendations
- Buy Sumitomo Chemical India at ₹475.25, target at ₹500, stop-loss at ₹460, timeframe 1 week.
- Buy Samvardhana Motherson International at ₹137.50, target at ₹145, stop-loss at ₹133, timeframe 1 week.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
The share price of Sumitomo Chemical India has been moving up consistently, with bullish higher highs and higher lows on the daily chart. The crucial hurdle, like the 200-day EMA, has been surpassed on the upside. Volume pattern and daily RSI indicate a positive bias for the stock price ahead.
Samvardhana Motherson International's share price has gained momentum on the upside, breaking out of the hurdle around the ₹136-138 levels. Volume has begun to expand during the stock price breakout, and the daily RSI shows a positive signal.
Investor Takeaway
Investors may consider buying stocks like Sumitomo and Samvardhana Motherson based on analyst recommendations.
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