Top technical analysts have these five smallcap and midcap stocks as promising buy opportunities in May. These picks offer favourable risk-reward setups across short- and medium-term horizons.
As the markets head into a seasonally volatile May, analysts are uncovering selective opportunities where technical strength, improving fundamentals, and favourable risk-reward setups align.
Five analysts have identified these midcap and smallcap stocks as strong candidates for investors looking to capitalise on near- and medium-term gains.
With bullish breakouts, positive momentum signals, and supportive fundamentals, these names are positioned to outperform if current trends hold.
Let’s take a closer look at these stock recommendations:
- Gujarat Mineral Development Corporation (GMDC)
SEBI-registered analyst Akhilesh Jat recommends buying Gujarat Mineral Development Corporation (GMDC) above ₹337, with a target of ₹405 and a stop-loss at ₹294.
GMDC now trades above its 50, 100, and 200 Double Exponential Moving Average (DEMA), with the current price hovering near its CY25 high of ₹336.85.
DEMA is a type of moving average that reacts faster to price changes, helping one spot new trends more quickly than regular moving averages.
Akhilesh believes that a breakout above this level could lead to further gains, supported by its reasonable PE of 15.67, a healthy 2.91% dividend yield, and strong industrial demand for lignite and fluorspar.
GMDC stock fell 2% year-to-date (YTD).
- Bandhan Bank
Prabhat Mittal sees Bandhan Bank as a strong short-term candidate, highlighting its resilience during recent market weakness.
He recommends buying within ₹152–157, with targets at ₹180 and ₹189 and a stop-loss at ₹142.
Bandhan has been forming an upward sloping channel on short-term charts and recently broke out above this pattern. The stock trades comfortably above its 20, 50, and 100 DMA, while a bullish MACD crossover further strengthens the outlook.
The MACD is a tool that helps one identify momentum shifts and trend direction in financial markets.
Bandhan Bank stock gained 6% year-to-date (YTD).
- Larsen and Toubro (L&T)
SEBI-registered analyst Aditya is bullish on L&T, suggesting entries between ₹3,250–₹3,350 with a target of ₹3,750 and a stop-loss at ₹3,120, over a three-month horizon.
L&T is creating higher highs and higher lows, signaling continued bullish sentiment.
L&T stock is down 7% year-to-date (YTD).
- Torrent Pharmaceuticals
Bharat Sharma has identified Torrent Pharma as a potential breakout stock, as all of the stock's key Exponential Moving Averages (EMAs) are aligned for further upward movement.
He recommends buying between ₹3,200–₹3,250, targeting ₹3,500–₹3,700+ with a stop-loss between ₹3,000–₹3,100, over 30–60 days.
Torrent Pharma stock fell 1% year-to-date (YTD).
- Jindal Steel and Power (JSPL)
Finally, Karanraj Sonkusale believes JSPL offers a strong medium- to long-term investment opportunity.
He highlights a bullish flag pattern on the charts, supported by a bullish engulfing candle formation near ₹850 and a recent MACD bullish crossover.
With rising green candle volumes and strong support at ₹850, JSPL is poised for an upside move, targeting ₹1,100–₹1,250, while maintaining ₹850 as the stop-loss.
Given JSPL's sound financial footing, promising industry trends, and positive analyst sentiment, Karanraj views the stock as an attractive option for medium- to long-term investors.
JSPL stock fell 4% year-to-date (YTD).
Stocktwits’ Yash Upadhyay breaks down top stock recommendations for May! Watch now to discover potential high-return picks from SEBI registered advisors.
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