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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, and sell rates are based on F&O)
Sun Pharma Advanced Research Co. Ltd: Buy above ₹169 | Stop ₹158 | Target ₹193 (multiday)
Laxmi Organic Industries Ltd: Buy above ₹165 | Stop ₹157 | Target ₹181 (multiday)
One 97 Communications Ltd (PayTM): Buy above ₹1,200 | Stop ₹1,150 | Target ₹1,290 (multiday)
On 7 May 2026, Indian equity markets ended marginally lower after another volatile session, as profit booking erased early gains despite optimism over easing geopolitical tensions following reports of a possible US-Iran peace deal. The benchmarks opened on a firm note, extending the previous day’s momentum, but failed to sustain higher levels and slipped towards the day’s low.
At close, the Sensex declined 114 points or 0.15% to 77,844.52, while the Nifty edged down 4.30 points or 0.02% to settle at 24,326.65, though it managed to hold above the 24,330 mark. Broader markets outperformed the frontline indices, with the Nifty Midcap Index surging 1.1% to a fresh peak of 62,094.40, while the Smallcap Index also registered gains, reflecting strong investor appetite beyond the large-cap space. The session highlighted resilience in mid- and small-cap segments even as headline indices struggled to maintain upward momentum amid intermittent selling pressure.
Trends are looking positive, but they are unable to take the initiative, making it a very cumbersome activity. Markets, despite holding on to emerging bullish trends, are hampered by the lack of clarity, keeping everyone at bay. Over the last few days, a sense of confidence and hope has emerged in the market, as 24,000 remains a key level that continues to generate bullish bias.
This week has seen some bullish resolve step up and take charge. 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.
At the moment, the corporate earnings are clouding the outlook for what had been expected to be a strong quarter. 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.
The option buildup is encouraging, as the Open Interest is slowly building a base at lower levels and shifting higher towards 24,300, as positions are now influencing some upward momentum. Volatile markets kept trends muted, and this has now created some turbulence despite the bearish outlook receding. As the war is becoming a non-event, it could now push the bears to surrender in the next few days. So, it appears the bearish sentiment bias is fading.
Why it’s recommended: Sun Pharma Advanced Research Co. Ltd. (SPARC) is a clinical-stage, international biopharmaceutical company focused on R&D for new drugs, including novel drug delivery systems and new chemical entities. After spending the last 6 months in a declining phase, the stock lost momentum till the Pharma sector picked up once again. In the recent revival, a sharp thrust above the value area at 155. The long-bodied candle with high volume signals the onset of a new trend in 2026. The steady support at the TS & KS bands. 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 ₹140 | Resistance at ₹205.
Risk factors: High-debt levels, interest coverage concerns.
Why it’s recommended: Laxmi Organics is a prominent Indian manufacturer specializing in acetyl intermediates and speciality chemicals, established in 1989 and based in Mumbai. After the last six months in a declining mode, we can now see a steady rounding pattern moving beyond the value area resistance around 153-155, which is continuing to lend support to the breakout, now leading to the TS & KS bands heading higher. A strong, long body candle augurs well for some upside if the market retains some positive momentum. A positive uptick in the Average Directional Index and Relative Strength Index we can look to initiate a long opportunity here for a push to higher levels. Go long now.
Technical analysis: Support at ₹150 | Resistance at ₹190.
Risk factors: Raw material price volatility, cyclicality, and competition.
Why it’s recommended: Paytm is a leading Indian financial technology (fintech) company and a pioneer of the digital payment revolution in India. After the descent, strong charge post-Q4 numbers that beat estimates have helped prices move above the cloud region. The V-shaped recovery seen over the last few weeks suggests the steady rise could continue beyond the cloud region. Also, the rise in the Positive Directional Index, coupled with an increase in volumes, could now bring about an upward trajectory. A break above 980 was a key event that is now initiating us to go long.
Technical analysis: Support at ₹1,090 | Resistance at ₹1,325.
Risk factors: Regulatory hurdles, intense competition, and questions regarding the sustainability of its profitability.
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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