Following a period of heightened tensions and military action, India and Pakistan have reportedly reached a mutual understanding to implement a full and immediate ceasefire. This development, confirmed by multiple sources, has been met with considerable optimism by the financial markets, which had been exhibiting signs of nervousness in recent trading sessions.
Market analysts anticipate a significant rebound in the Indian stock market as it opens today, Monday, May 12, 2025. The de-escalation of geopolitical tensions is expected to restore investor confidence and potentially lead to renewed buying interest across various sectors.
In light of this positive development, Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, has recommended three stocks that investors can consider buying today for potential gains. Her recommendations are based on technical analysis and the anticipated market recovery following the ceasefire announcement.
The three stocks recommended by Vaishali Parekh are:
- Protean eGov Technologies: Buy at ₹1269, with a target price of ₹1320 and a stop loss at ₹1230. This recommendation suggests a potential upside of over 4% if the target price is achieved, with a defined risk level.
- MMTC (Metals and Minerals Trading Corporation of India): Buy at ₹52, with a target price of ₹56 and a stop loss at ₹50. This trade offers a potential gain of approximately 7.7% with a limited downside risk.
- GRSE (Garden Reach Shipbuilders & Engineers): Buy at ₹1799, with a target price of ₹1900 and a stop loss at ₹1730. This recommendation indicates a potential upside of over 5.6%, with a specified level to exit the trade if it moves unfavorably.
It is important to note that these recommendations are based on the analyst’s technical assessment of the stocks as of today and are contingent on the overall market sentiment and the sustainability of the India-Pakistan ceasefire. Investors should conduct their own due diligence and consider their risk appetite before making any investment decisions.
The news of the ceasefire has already had a positive impact on market sentiment, with GIFT Nifty indicating a strong opening for the Indian benchmark indices. Experts believe that sectors such as banking and defense, which may have been affected by the recent geopolitical uncertainty, could see renewed buying interest. Broader market indices are also expected to recover some of the losses incurred during the period of heightened tensions.
While the immediate market reaction is expected to be positive, some analysts caution that the sustainability of the bullish sentiment will depend on the continuation of the ceasefire and the absence of any further escalatory rhetoric or actions from either side. Investors will also be closely monitoring the ongoing Q4 earnings season and global cues, particularly developments related to international trade.
Overall, the India-Pakistan ceasefire has brought a wave of optimism to the Indian stock market, and the recommendations from analysts like Vaishali Parekh could provide investors with potential opportunities in the current environment. However, prudent investment strategies and careful risk management remain crucial.