Recommended Stocks to Buy Today: Top Stock Picks by Market Experts for 20 May 2025

Date: 20 May 2025
Author: ASJ Ventures Research Desk

Market Context: Bulls Hold Ground, Stock Pickers Take Charge

Indian equity markets are sailing through a critical phase marked by tight consolidations, earnings-induced volatility, and geopolitical undercurrents. On Monday, 19 May 2025, the Nifty 50 managed to end on a mildly positive note, despite cautious undertones globally.

As traders prepare for 20 May, the market presents selective opportunities for those ready to look beyond the index and focus on quality stocks. Expert traders and institutional desks have narrowed down a few fundamentally robust and technically appealing picks.

This report outlines the top stock picks recommended by leading market experts for 20 May 2025, curated using technical patterns, volume trends, F&O data, and news-based triggers.

Overall Market Setup: Stable with a Stock-Specific Bias

Key Indicators:

• Nifty 50 Close (19 May): 22,340.70 (+0.26%)

• Sensex Close: 73,910.45 (+0.22%)

• India VIX: 12.1 (Stable)

• FII/DII Data: FIIs remained net sellers; DIIs absorbed the selloff with aggressive buying in midcaps

• SGX Nifty: Indicates a mildly positive opening on 20 May

With the index in a holding pattern, smart money is rotating into sectoral leaders and short-term breakout candidates. Below are the most compelling expert picks for today.

Top 10 Stock Picks for 20 May 2025

Each stock listed here is accompanied by expert analysis, rationale, entry price, targets, stop-loss levels, and a brief commentary.

 1. Larsen & Toubro (L&T) – BUY

• CMP: ₹3,525

• Target: ₹3,650

• Stop-Loss: ₹3,450

• Rationale: Bullish pennant breakout with strong volume surge. Infrastructure sector gaining momentum on government orders and execution pace.

 2. ICICI Bank – BUY

• CMP: ₹1,120

• Target: ₹1,180

• Stop-Loss: ₹1,090

• Rationale: Formed a bullish engulfing pattern on the daily chart; strong accumulation at ₹1,100 zone. Credit growth and robust retail loan book outlook.

 3. Tata Motors – BUY

• CMP: ₹962

• Target: ₹1,020

• Stop-Loss: ₹940

• Rationale: Beneficiary of the CV demerger and UK EV subsidy support. Consistent delivery on sales and improved margin profile.

 4. Axis Bank – BUY

• CMP: ₹1,144

• Target: ₹1,200

• Stop-Loss: ₹1,120

• Rationale: Continues to consolidate after recent earnings beat. Likely to see fresh momentum as PSU banks take a breather.

 5. Hindalco Industries – BUY

• CMP: ₹604

• Target: ₹640

• Stop-Loss: ₹588

• Rationale: Commodity-linked play. Strong tailwinds from LME aluminum rally and improved downstream demand.

 6. Cipla – BUY

• CMP: ₹1,330

• Target: ₹1,385

• Stop-Loss: ₹1,300

• Rationale: Positive pharma pack setup. Technically poised for a breakout above ₹1,350. US FDA compliance boosts confidence.

 7. LTIMindtree – BUY

• CMP: ₹5,020

• Target: ₹5,300

• Stop-Loss: ₹4,900

• Rationale: Rising IT sector sentiment. Merger synergy benefits are now being priced in.

 8. Aditya Birla Capital – BUY

• CMP: ₹185

• Target: ₹202

• Stop-Loss: ₹177

• Rationale: Fresh F&O long build-up, strong bullish divergence on daily MACD. Attractive valuation among NBFCs.

 9. IndusInd Bank – BUY

• CMP: ₹1,410

• Target: ₹1,460

• Stop-Loss: ₹1,380

• Rationale: Banking sector rotation trade. RSI and stochastic indicators suggest renewed momentum.

 10. Bharat Forge – BUY

• CMP: ₹1,330

• Target: ₹1,395

• Stop-Loss: ₹1,305

• Rationale: Beneficiary of defense and commercial vehicle exports. Excellent quarterly numbers with margin expansion.

Stocks to Avoid or Watch With Caution

Not every opportunity is a buy. Some stocks are best left alone or watched closely due to technical exhaustion, high valuations, or poor earnings visibility.

F&O Insights: Stocks with Strong Derivative Action

• High Long Build-Up: Tata Motors, Hindalco, ICICI Bank

• Short Covering Observed: LTIMindtree, Cipla

• Fresh Shorts Seen: Adani Total Gas, DLF

Derivative trends point to continuation in banking, auto, and metals, while real estate and media remain subdued.

Sector Snapshot: Momentum Across the Board

Expert Voices: What Market Gurus Say

Rachit Sharma, Technical Analyst, ASJ Investments:

“The current environment favors stock-specific trades over index-heavy strategies. The market is respecting technical breakouts, particularly in autos and private banks. Traders should ride the momentum but keep a tight leash on risk.”

Meenakshi Agarwal, Fundamental Research Head, CapitalMark:

“Quality names with sectoral tailwinds are commanding a premium. We're seeing a consistent inflow in value-based midcaps that have stable earnings and growth visibility.”

Investment Strategy for Today

• Stick to fundamentally strong companies with technical confirmations

• Focus on sectors with tailwinds: Auto, Private Banks, Metals

• Avoid speculative names showing distribution

• Trail profits with stop-loss to lock in gains

• Keep position sizes moderate due to global uncertainties

Economic Watchlist (Near-Term Triggers)

Quality Over Quantity in the Stock Picker’s Market

The 20 May 2025 session brings with it a strong case for active stock pickers who can identify breakout setups and align with macro themes. Auto, banking, and select IT stocks remain in focus, while defensive bets in FMCG and utilities may underperform in the near term.

Stay vigilant, stay focused, and always let data lead your trades. The winners today are not those who chase momentum blindly — but those who follow a structured, disciplined strategy grounded in both fundamentals and price action.

Happy trading!