Analyst suggest Nifty investment strategy; GAIL, Tata Steel among top bets

The recent price action in the Nifty indicates that the bulls are making a strong effort to sustain the prevailing uptrend. Buy GAIL, Tata Steel and this one stock today

Nifty share price: 

Markets traded volatile but managed to end with gains of over half a percent, taking a breather after the recent decline. The first half of the session was a roller-coaster ride, with the Nifty swinging sharply on both sides. However, buying interest in select heavyweight stocks kept the tone positive and helped the index close at 24,813.45.

 

All major sectors moved in tandem with the benchmark trend, with realty, pharma, and financials emerging as the top gainers. The broader indices also ended in the green, reflecting a positive market breadth.

 

The recent price action in the Nifty indicates that the bulls are making a strong effort to sustain the prevailing uptrend. Participants are advised to align their positions accordingly, focusing more on stock selection based on relative strength. Dips should be seen as an opportunity to gradually accumulate quality stocks. Among key sectors, pharma, realty, metals, and banking are preferred, while a selective approach is recommended for the rest.  Read Stock Market Updates Today LIVE

 

Stocks to buy today, May 22, 2025:

Divi's Laboratories Limited | LTP: ₹6,552| Buy | Target: ₹6,980| Stop-loss: ₹6,340

The pharma sector is witnessing noticeable traction, with Divi’s Laboratories leading the charge. The stock has recently broken out of a broad consolidation range between ₹5,350 and ₹6,250, after spending nearly seven months within that zone, and is now trading near its record high. The chart pattern, coupled with the overall strength in the pharma space, suggests that the positive momentum is likely to continue. Traders may consider entering long positions within the specified range.

GAIL (India) Limited | LTP: ₹190.64| Buy | Target: ₹203| Stop-loss: ₹185

GAIL has been gradually moving higher over the past two months, following a short-term trend reversal in March. The stock has recently formed a fresh buying pivot while holding firmly above the support zone formed by the moving average ribbon. The indications suggest that the steady rebound is likely to continue, and participants may consider initiating fresh long positions at current levels.  ALSO READ | Where's the stock market headed in bull vs bear battle? An investor guide

Tata Steel Limited | LTP: ₹161.64| Buy | Target: ₹173| Stop-loss: ₹156

Following a notable correction from its previous swing high, Tata Steel has rebounded sharply over the past month after retesting its support zone around the 125 level. The renewed traction in the metal space, coupled with a favorable chart structure, is likely to drive the stock higher in the coming sessions.

 

(Disclaimer: This article is by Ajit Mishra, SVP-research, Religare Broking. Views expressed are his own.)