Indian equity benchmarks ended slightly lower on Friday but recorded a third consecutive monthly gain, buoyed by steady institutional inflows and strong corporate earnings, despite global trade and geopolitical concerns. The Nifty 50 rose 1.7% and the Sensex gained 1.5% in May. Amid this positive backdrop, analysts have identified five technical picks that could deliver gains of up to 20% in the near term.
Anshul Saigal of Saigal Capital suggests metal stocks are poised for growth due to cyclical lows, attractive valuations, and rising global demand. While auto sector growth is modest, excitement stems from increased profitability in SUVs and anticipated commercial vehicle volume growth. Saigal views promoter buying as a stronger indicator than selling, attributing sales to various factors like parental debt.
Nomura observed that, despite overall earnings estimate reductions, Indias Q4 season saw more companies outperform than underperform. Since March 2025, consensus earnings estimates for FY26 and FY27 have been lowered by 2.3% and 1.4%, respectively.
Anshul Saigal of Saigal Capital suggests the market is consolidating after a strong rally. Fourth-quarter results exceeded expectations, leading to market gains. The Russia-Ukraine war's impact is now minimal, with markets largely desensitized. Peace efforts are underway. Saigal anticipates a range-bound market in the near term. Markets are expected to digest recent gains before the next move.
Reliance Power shares: Reliance Power's recent gains follow its May 28 announcement that subsidiary Reliance NU Energies received a Letter of Award from SJVN for a 350 MW ISTS-connected solar project, along with a 175 MW/700 MWh battery storage system.
Rajesh Palviya of Axis Securities sees potential Bank Nifty breakout above 55,800. This could lead to new highs, fueled by PSU bank accumulation. Nifty and Bank Nifty rollovers are high. A Nifty breakout above 24,900 could trigger a rally to 25,200. BSE, IndiGo, and Bharti Hexacom are strong. BSE could reach 2800-2900. IndiGo may hit new highs above 5400-5450.
The Q4 earnings season concluded with positive results. Many companies exceeded market expectations. Cement, FMCG, construction, and engineering sectors performed well. Defence companies like Mazagon Dock disappointed due to valuation concerns. Suzlon, a wind energy company, showed strong performance. UltraTech Cement's results were better than expected. Bharat Electronics is expected to have a re-rating soon.
Niva Bupa shares: ETNOW had reported that Fettle Tone LLP, an investment arm of True North, was likely to offload up to 122 million shares, representing about 6.7% of Niva Bupas equity. Additionally, CEO Krishnan Ramachandran was expected to sell around 10 million shares, or 0.5% of the companys stake. The shares were priced at 82 each, valuing the total deal at approximately 1,082 crore.
