Today's Top Stock Picks: Expert-Recommended Buys for May 5th

On Friday, the Nifty 50 index experienced notable fluctuations but successfully maintained its position above 24,300 points, showcasing a robust upward trend. Despite significant intraday volatility, the index reflected a persistent bullish sentiment among investors. While most sectoral indices closed lower, with consumer durables, metal, pharma, and realty sectors taking the biggest hits, the Nifty Media and IT sectors stood out by resisting the downward trend.

Top Stock Picks for Today

Investors seeking opportunities should consider these three stocks recommended by Ankush Bajaj:

1. Adani Ports (Current Price: ₹1,267)

Why Buy?: The stock has recently experienced a breakout, closing above the critical level of ₹1,260. An hourly chart analysis reveals a bullish pennant breakout, indicating strong potential for upward movement.
Key Metrics:
- Breakout Level: ₹1,260
- Pattern: Bullish pennant breakout (hourly chart)
- RSI: Bullish momentum
Technical Analysis: The price action confirms a strong breakout above essential levels.
Risk Factors: The ports sector’s performance can be influenced by global trade dynamics, regulatory changes, and fluctuations in freight rates.
Buy at: ₹1,267 | Target Price: ₹1,285-1,295 (1-3 days) | Stop Loss: ₹1,255

2. Reliance Industries (Current Price: ₹1,422)

Why Buy?: The stock has closed above the 61.80% Fibonacci retracement level, signaling a robust bullish trend, with a recent high of ₹1,609 and a low of ₹1,115. A bullish pennant breakout is visible on the lower timeframe chart, indicating potential for a significant upward move.
Key Metrics:
- Fibonacci Level: 61.80% (₹1,408)
- Pattern: Bullish pennant breakout (lower timeframe)
Technical Analysis: The closing above the Fibonacci level confirms strength, while the lower timeframe breakout enhances the bullish outlook.
Risk Factors: Reliance’s diverse operations may expose it to fluctuations in oil prices, regulatory challenges, and telecom sector volatility.
Buy at: ₹1,422 | Target Price: ₹1,445-1,465 (1-3 days) | Stop Loss: ₹1,408

3. Tube Investments of India (TIINDIA) (Current Price: ₹2,908)

Why Buy?: This stock has successfully closed above ₹2,900, a significant resistance level. A bullish pennant breakout above ₹2,925 signals a promising uptrend.
Key Metrics:
- Breakout Level: ₹2,925
- Pattern: Bullish pennant breakout (lower timeframe)
- Resistance Turned Support: ₹2,900
Technical Analysis: The closure above key resistance levels indicates strength and potential continuation of the uptrend.
Risk Factors: TIINDIA may be affected by volatility in raw material prices, demand in the auto sector, and broader economic conditions.
Buy at: ₹2,908 | Target Price: ₹2,950-2,970 (1-3 days) | Stop Loss: ₹2,874

Additional Recommendations from MarketSmith India

Investors should also consider these stocks highlighted by MarketSmith India:

4. Eris Lifesciences (Current Price: ₹1,493.5)

Why Buy?: The stock demonstrates strong financial health, promising growth prospects, and operational efficiency.
Key Metrics:
- P/E Ratio: 55.34
- 52-Week High: ₹1,593.90
- Volume: ₹69.62 crore
Technical Analysis: The stock has rebounded from its 21-EMA.
Risk Factors: Investors should be cautious of potential overvaluation and high ESG risk ratings.
Buy at: ₹1,493.5 | Target Price: ₹1,690 (3 months) | Stop Loss: ₹1,390

5. DLF (Current Price: ₹687)

Why Buy?: The company is witnessing a surge in luxury residential demand, enhancing its rental income portfolio.
Key Metrics:
- P/E Ratio: 93.12
- 52-Week High: ₹968
- Volume: ₹234.08 crore
Technical Analysis: A breakout from a downward-sloping trendline suggests positive momentum.
Risk Factors: Concentration in the NCR market, regulatory hurdles, and approval delays may pose risks.
Buy at: ₹687 | Target Price: ₹780 (3 months) | Stop Loss: ₹645

Expert Insights

Ankush Bajaj, a registered research analyst, suggests that with positive market triggers, investors can look to go long on Adani Ports above ₹1,270 and consider dips toward ₹1,245, with a stop loss below ₹1,220 to target ₹1,400-1,450 in the coming month. Meanwhile, Indian Hotels shows steady growth, making it a candidate for a long position above ₹805 and on dips towards ₹780, with a stop loss set at ₹765 to aim for ₹885-935.