Need fresh stock ideas for short to medium term? 1 largecap Navratna PSU and 1 largecap airline stock on analyst radar

Stocks to buy: Indian equities buoyed by favourable cues are scaling tremendously in Monday's session (May 12, 2025) rejoicing India-Pakistan ceasefire at one end, and US-China trade on the other.

As per the latest inputs on US-China trade deal, the two economies have agreed to take steps to implement a 90-day pause on imposing fresh tariffs and also showed signals of lowering tariffs. Furthermore, the US has slashed steep tariffs of 145 per cent on China imports to 30 per cent.

The positive global and domestic cues has given a push to risk-on sentiment, triggering sharp gains of over 900 points on the Nifty.

So, as sentiments have improved, here are two stocks for substantial gains of up to 34 per cent based on techicals.

IRFC| Buy for targets of Rs 134/ Rs 157| Potential upside: 34%

Kunal Kamble, Sr. Technical Research Analyst at Bonanza has recommended buying Navratna PSU stock.

IRFC has respected its support level at ₹109 and rebounded strongly with a gap-up opening in today’s session. The price has managed to sustain above the 21-day Double Exponential Moving Average (DEMA), signaling a short-term bullish bias.

A bullish divergence is evident between price and momentum on the Relative Strength Index (RSI). While the price continues to form lower lows, the RSI is forming higher lows, indicating a potential reversal in trend. Moreover, the decline in selling volume suggests reduced interest from sellers, further supporting the bullish case.

As long as IRFC maintains levels above ₹109, the stock is well-positioned to move towards ₹134 in the near term, followed by a potential rally to ₹157.

Indigo| Buy for targets of Rs 5,9264/ Rs 6210| Potential upside: 22%

Kunal Kamble, Sr. Technical Research Analyst at Bonanza has recommended buying Interglobe Aviation 

IndiGo is currently trading near a key resistance level of ₹5,665, a zone where selling pressure has been observed on three prior occasions. Despite this, the stock continues to exhibit bullish momentum and is expected to trade higher in the coming sessions.

The price is comfortably trading above its 50-day Double Exponential Moving Average (DEMA), reinforcing the strength of the prevailing uptrend. The Relative Strength Index (RSI), after a brief cool-off, has resumed its upward trajectory, lending further support to the positive price action.

The Directional Movement Index (DMI) also confirms the bullish bias, with the +DI (Positive Directional Indicator) positioned above the -DI (Negative Directional Indicator). Furthermore, the Average Directional Index (ADX) trading above the -DI suggests that the ongoing trend is gaining strength.

As long as the stock holds above the crucial support level of ₹5,350, it is expected to move towards the immediate target of ₹5,926, followed by ₹6,210 in the short to medium term.