Stock market today: Despite strong global market sentiments, the Indian stock market ended lower on Friday. This was primarily due to profit booking after the indices reached new peaks earlier in the day. The Nifty 50 index ended 172 points lower after reaching a new peak of 22,794, and the BSE Sensex dropped 732 points from its lifetime high of 75,124. The Bank Nifty index also saw a significant decline of 307 points, closing at 48,923. In the broader market, the small-cap index finished 0.55 per cent lower after reaching a new peak of 47,678, and the mid-cap index ended 0.21 per cent lower after touching a new high of 42,774.
Anand Rathi's stock picks for Monday
Ganesh Dongre, Senior Manager — of Technical Research at Anand Rathi, believes that the Indian stock market bias may remain sideways in upcoming sessions till the Nifty 50 index continues to trade in the 22,300 to 22,900 range. The Anand Rathi expert said the next crucial support below 22,300 is placed at 22,100. On day trading stocks today, Ganesh Dongre of Anand Rathi recommended three stocks to buy today — Sun Pharma, BHEL, and IOC. These stocks have been chosen based on their recent price movements, volume trends, and other technical indicators.
Also Read: Trade setup for stock market today: Five stocks to buy or sell on Monday — May 6
Stock market today
Speaking on the outlook for the Indian stock market today, Ganesh Dongre said, "On the Nifty front, nifty closed at the support level of 22300–22400 zone, which may keep the movement sideways for the Nifty in the upcoming days. The next resistance for the Nifty spot will be 22800-22900. As per today's chart pattern, we have seen the gap opening and continue its bullish trend, but Nifty has seen profit booking for the rest of the day. So, indices closed in negative territory at the end of the day. So, on the Nifty front, we may see profit booking on the stock-specific level in the upcoming trading session; next Nifty support stands at the 22100-22200 level."
"On the bank nifty front, we have seen a gap-up opening today, which is a strong bullish signal, but it couldn't hold its gain and seen profit booking in the indices till the end of the day. Bank Nifty resistance stands at 49,000 and support at 48,500 level," Dongre said. In summary, the stock market today showed signs of volatility and profit booking after reaching new peaks earlier in the day.
Shares to buy today
1] Sun Pharma: Buy at ₹1515, target ₹1555, stop loss ₹1495.
With significant support in Sun Pharma shares around ₹1495, the current juncture presents a potential opportunity. Sun Pharma share price has seen a reversal price action formation at the ₹1515 price level, which may continue its rally till its next resistance level of ₹1555. This suggests a potential gain for traders who buy and hold this stock with a stop loss of ₹1495 for the target price of ₹1555 in the near term.
2] BHEL: Buy at ₹305, target ₹330, stop loss ₹296.
BHEL share price has seen a bullish reversal pattern, which is a technical chart pattern that indicates a change in the prevailing trend, and technically, retrenchment, which is a temporary reversal in the direction of a stock's price that goes against the prevailing trend, could be possible till ₹330. So, holding the support level of ₹296 BHEL share price can bounce toward ₹330 in the short term. Hence, the trader can go along with a stop loss of ₹296 for the target price of ₹330.
3] IOC: Buy at ₹170, target ₹185, stop loss ₹162.
We have seen a fresh breakout, which is a technical analysis term that describes a stock price moving outside a defined support or resistance level with increased volume, in this stock, around 162 rupees. So, at the current juncture, IOC share price has again seen a reversal price action, which is a change in the direction of a stock's price that goes against the prevailing trend, and bullish candlestick pattern formation at the ₹170 price level, which may continue its rally till its next resistance level of ₹185. So, traders can buy and hold this stock with a stop loss of ₹162 for the target price of ₹185 in the near term.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circ*mstances may vary.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
Business NewsMarketsStock MarketsDay trading stocks to buy: IOC, BHEL, Sun Pharma — Anand Rathi expert recommends three shares to buy today — May 6
