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The Nifty generated a sense of confidence that we have been searching for the last few weeks. We had identified important zones, and this strong thrust seen yesterday could now fuel some trends ahead.
Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)
Godrej Industries Ltd: Buy above ₹1,025 | Stop ₹975 | Target ₹1,150 (multiday)
Ajanta Pharma Ltd: Buy above ₹3,105 | Stop ₹2,980 | Target ₹3,375 (multiday)
L&T Finance Ltd: Buy above ₹302 | Stop ₹288 | Target ₹331 (multiday)
On 6 May 2026, Indian equity benchmarks staged a sharp rebound as easing geopolitical tensions and a steep fall in crude prices lifted investor sentiment. Reports that the US and Iran are nearing a one-page memorandum to end the war brought relief to global markets, while an 8% decline in oil prices further supported risk appetite. After a volatile start, heavy buying in the final hour propelled indices higher.
The Sensex surged 940.73 points, or 1.22%, to close at 77,958.52, having touched an intraday high of 78,022.78 with gains of over 1,000 points. The Nifty followed suit, rallying 298.15 points, or 1.24%, to settle at 24,330.95. This sharp recovery came after Tuesday’s weakness, when the Sensex had slipped 251.61 points to 77,017.79, and the Nifty had declined 86.50 points to 24,032.80. The rebound underscored renewed optimism across sectors, driven by easing crude and hopes of geopolitical resolution.
Markets have managed to hold on, and the rebound seen over the last few days has continued to show signs of hope, with 24,000 as a key level that remains intact. Unlike last week, this week saw some solidarity across the broader indices. While a revival is evident, we need to keep in mind that we are still not out of the woods, and this could be an intermittent rally. The triggers we can expect in the coming week will be a mix of domestic and global factors that could impact sentiment. Last week, the movement was largely driven by some shorts, with no clarity at the global level, and markets were closed. Volatility shall continue to be part of the overall environment and will need some time to stabilize.
Globally, the Federal Reserve policy measures are now coming into play. Even though broader US price pressures still appear modest for now. That in turn has stoked anxiety that many central banks will start to tighten policy and raise borrowing costs, hurting corporate earnings and clouding the outlook for what had been expected to be another solid year of global economic growth. The daily chart above clearly shows that the ranging action has now given way, suggesting that some newsflow remains in play. We will need more momentum to head higher. While we note that the gap range is broken, we still need more momentum to drive higher, as the bullishness seen on Wednesday was primarily news-driven short covering rather than genuine buying.
Looking at the option build-up at the time of expiry, we noted that the May series began with option concentration at 24,000. Rolls on the short side were on the higher side, and the quantum of the Nifty and the Nifty Bank that began with a heavy bearish outlook is now receding. As the war is heading towards a close, it could now push the bears to lapse the pending positions rather than carry them forward. So, it appears the bearish sentiment bias is fading.
Why it’s recommended: Godrej Industries Ltd is a diversified holding company under the Godrej Industries Group, founded in 1897 and headquartered in Mumbai. It operates in oleochemicals, while holding major stakes in subsidiaries. After spending nearly 7 months in a declining phase, the stock lost all its sheen. In the recent revival a sharp thrust above the value area the all through the year 2026 and in last few days in April 2026 the prices revived. The steady support at the TS & KS bands and the reversal gathered steam on Wednesday, post the results. A promising long body candle to end the previous trading session, despite some market sell-off, indicates some genuine buying interest. Go long.
Technical analysis: Support at ₹325 | Resistance at ₹440.
Risk factors: High debt levels, interest coverage concerns.
Why it’s recommended: Ajanta Pharma is a Mumbai-based speciality pharmaceutical company, founded in 1973, that specialises in developing and manufacturing branded generics and generic medicines. After the recent reaction, we can note that the steady rounding pattern in the value area support around 2760-2800 is continuing to lend support to the breakout, which is now leading to the TS & KS bands heading higher. The strong thrust has led to a strong breakout above the cloud region, forming a nice rounding pattern revival. A strong long body candle augurs well for some upside if the market retains some positive momentum. A rise in the RSI above the 60 level indicates we can look to initiate a long opportunity here, targeting higher levels. Go long now.
Technical analysis: Support at ₹2,950 | Resistance at ₹3,400.
Risk factors: Heavy dependence on the US market, regulatory compliance, and pricing pressures.
Why it’s recommended: L&T Finance Ltd is a leading, top-rated Non-Banking Financial Company (NBFC) in India, focused on providing a wide range of financial products and services. The steady rise since April 2026, a reaction that found support in the cloud region, has driven volumes higher, combined with the rising RSI, indicating no let-up in momentum. A break above 980 was a key event that is now initiating us to go long.
Technical analysis: Support at ₹278 | Resistance at ₹340.
Risk factors: Risks primarily tied to its retail-heavy, rural-focused lending portfolio, high debt, and reliance on parent support.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.
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