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Buy or sell stocks: Indian benchmark indices, Sensex and Nifty 50, closed lower on Tuesday, May 5, led by profit booking in select banking and financial heavyweights. The 30-share Sensex declined 252 points, or 0.33%, to settle at 77,017.79, while the Nifty 50 fell 87 points, or 0.36%, to close at 24,032.80.
On Tuesday, the Nifty 50 opened with a gap-down at 24,052.60 and witnessed volatility in the first half, marking an intraday high of 24,081.70 and a low of 23,882.05. In the latter half, the index traded in a range-bound manner and eventually closed at 24,032.80, registering a decline of 86.50 points or 0.36% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a hammer-like candlestick pattern indicates buying interest emerging at lower levels, suggesting the possibility of short-term support formation.
“From a technical perspective, immediate support is placed in the 23,850–23,900 range, while resistance is observed between 24,200 and 24,250 levels. The Relative Strength Index (RSI) stands at 50.70, hovering around the midpoint of 50, indicating neutral momentum. In the derivatives segment, notable call writing was seen at the 24,200 strike, followed by 24,300, while significant put writing was observed at 24,000 and 23,900 levels, indicating near-term support zones,” Bagadia said.
The Bank Nifty index opened with a gap-down at 54,691.30 and extended losses in the first half, marking an intraday low of 54,221.65. However, a recovery in the latter half pushed the index to an intraday high of 54,888.55. The index eventually closed at 54,547.05, declining by 331.45 points or 0.60% for the day.
Bagadia further noted that on the daily timeframe, the formation of a Doji-like candlestick pattern indicates indecision and a lack of strong directional conviction.
“From a technical standpoint, immediate support is placed in the 53,950–54,000 range, while resistance is seen in the 55,000–55,150 zone. The Relative Strength Index (RSI) stands at 43.77, indicating weakening momentum and a slight bearish bias. Sustaining above this level would be important to avoid further downside,” Bagadia said.
He further advised to wait for a decisive breakout above resistance or breakdown below support levels before initiating fresh positions, as advised to wait for a decisive breakout above resistance or breakdown below support levels before initiating fresh positions. While the decline in volatility indicates reduced panic, weak momentum and cautious sentiment continue to persist, he added.
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Wednesday, 6 May: Manorama Industries, Aditya Birla Capital, Apollo Micro Systems, Syrma SGS Technology, and Gravita India Limited.
1] Manorama Industries: Buy at ₹1594, Target ₹1715, Stop Loss ₹1515
Manorama Industries share price has delivered a decisive breakout on the daily chart and is currently trading around 1594, indicating strong bullish momentum after crossing a prolonged consolidation range near the 1500 zone. The stock has shown a sharp expansion in price with supportive volume activity, suggesting fresh buying interest at higher levels.
Technically, MANORAMA is trading well above its key EMA, which reflects strength across both short-term and long-term trends. The recent move also signals the continuation of the broader uptrend after months of sideways action. If the stock manages to sustain above the support zone, it may attract further momentum buying and head towards 1715, which appears to be the next potential resistance area. On the downside, 1515 remains a crucial support and stop-loss zone. Any close below this level may lead to temporary consolidation or profit booking.
2] Aditya Birla Capital: Buy at ₹360, Target ₹390, Stop Loss ₹346
Aditya Birla Capital share price is maintaining a strong upward trajectory and is currently trading around 360, after a steady rise from recent correction levels. The chart structure remains positive with the stock consistently forming higher highs and higher lows, reflecting sustained buying demand. It is also hovering near its all-time high zone, which highlights continued market strength and bullish sentiment.
Technically, the stock is trading above its key EMA, signalling a healthy trend across all major timeframes. The recent breakout candle, supported by strong price action, indicates the possibility of further upside if momentum continues. A sustained move above support could open the path towards 390 in the near term. On the downside, 346 acts as immediate support and an important stop-loss level. Any close below this zone may invite short-term weakness.
3] Apollo Micro Systems: Buy at ₹308, Target ₹330, Stop Loss ₹294
Apollo Micro Systems share price has shown a strong bullish reversal on the daily chart and is currently trading around 308 after a sharp recovery from lower levels. The stock has broken above its recent consolidation band with rising momentum, indicating renewed buying interest. Price action suggests strength as it continues to trade above its key short-term moving averages.
The recent series of positive candles and a series of higher highs and higher lows formation, supported by healthy volumes, reflects accumulation at higher levels. If the stock sustains above the support zone, it may continue its upward move towards 330, which appears to be the next important resistance zone. On the downside, 294 remains a crucial support and stop-loss level. Any close below this mark could lead to temporary weakness or sideways consolidation.
4] Syrma SGS Technology: Buy at ₹1058, Target ₹1150, Stop Loss ₹1015
Syrma SGS Technology share price has resumed its strong upward momentum and is currently trading around 1058 after delivering a clean breakout above the earlier resistance zone near 1032. The stock is now trading at a fresh lifetime high, which reflects sustained demand and strong investor confidence.
The overall chart structure remains bullish with price trading firmly above the key EMA, signalling strength across all major timeframes. Recent candles indicate follow-up buying after the breakout, suggesting momentum may continue in the near term. If the stock sustains above support, it could extend the rally towards 1150, which emerges as the next upside target zone. On the downside, 1015 remains an important support and disciplined stop-loss level. Any close below this zone may trigger short-term consolidation or profit booking.
5] Gravita India Limited: Buy at ₹1722, Target ₹1870, Stop Loss ₹1655
Gravita India Limited share price is showing encouraging signs of trend reversal and is currently trading around 1722 after a decisive move above its key 200-day EMA. The previous session’s strong close above this long-term average, followed by continued buying interest today, suggests improving sentiment and fresh accumulation.
The stock has also regained momentum above shorter-term moving averages, indicating a strengthening price structure after a corrective phase. Recent candle formations reflect bullish follow-through, which often signals continuation of the recovery trend. If the stock sustains above support, it may witness further upside towards 1870, which stands as the next important resistance zone. On the downside, 1655 remains a critical support level and ideal stop-loss point, as it aligns closely with the 200-day EMA. Any close below this level may weaken the current bullish setup.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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