Best stock recommendations today: MarketSmith India's top picks for 7 May
Summary
Best stock recommendations: Discover MarketSmith India's expert top picks for Wednesday, 7 May. Get insights into top-performing stocks and make informed investment decisions.
On Tuesday, Nifty50 witnessed volatility and ended on a negative note, primarily due to profit booking at higher levels following its recent gains. The index opened flat but failed to sustain intraday recoveries amid weakness in major sectoral indices and profit booking in broader markets. Mixed global cues and investor caution ahead of upcoming economic data and Q4 earnings, further dampened the market sentiment. As a result, Nifty remained range-bound throughout the session.
Two stock recommendations by MarketSmith India
Buy: Hindustan Unilever Ltd. (current price: ₹ 2,381.8)
- Why it’s recommended: Resilient business model with strong brand portfolio, strategic initiatives, and future outlook
- Key metrics: P/E: 52.82, 52-week high: ₹ 3,035.00, volume: ₹448.16 crore
- Technical analysis: Bounced back from its 100-DMA
- Risk factors: Slower rural demand recovery, high valuation
- Buy at: ₹ 2,381.8
- Target price: ₹ 2,590 in three months
- Stop loss: ₹ 2,290
Buy: Fortis Healthcare Ltd (current price: ₹ 687)
- Why it’s recommended: Strategic capacity expansion and robust financial performance
- Key metrics: P/E: 61.30, 52-week high: ₹ 743, volume: ₹ 113.46 crore
- Technical analysis: Horizontal trendline breakout
- Risk factors: Dependence on key geographies
- Buy at: ₹ 687
- Target price: ₹ 845 in three months
- Stop loss: ₹ 625
Also Read: Shareholding moves in Q4: Did retail investors' small-cap love fizzle out?
How Nifty 50 performed on Tuesday
On Tuesday, Nifty 50 opened on a subdued note and struggled to sustain above 24,500. The index quickly slipped below 24,450 within the first hour of trading and remained range-bound between 24,330–24,400 throughout the session. Consequently, it ended its two-day winning streak, closing at 24,379 and forming a bearish candlestick on the daily chart. On the sectoral front, all major indices ended in the red, except Nifty Auto. Market breadth remained weak, with the advance-decline ratio sharply skewed at 1:6, indicating broad-based selling pressure.
From a technical standpoint, Nifty 50 remains above all key moving averages on the daily chart, reflecting continued strength in the broader trend. . The relative strength index (RSI) is moving sideways, signaling a pause in momentum, while the MACD is on the verge of a bearish crossover, hinting at potential weakness in the near term.
According to O'Neil’s methodology of market direction, Nifty50 transitioned from a "Rally Attempt" to a “Confirmed Uptrend".
The index failed to sustain above 24,400, triggering mild profit booking and a close below this level. The price and momentum structure on the daily chart suggests ongoing consolidation within 24,000–24,500. A breakout or breakdown from this zone is expected to determine the next directional move. If the index remains below 24,400, volatility may persist. Fresh bullish positions are advisable only above 24,450, while key support is placed between 24,000–23,900.
Also Read: Five stocks that could deliver big over the next five years
How Nifty Bank performed
On Tuesday, Bank Nifty opened on a flat note but quickly came under selling pressure and remained in negative territory throughout the session. The index formed a bearish candlestick pattern with a lower-high and lower-low formation on the daily chart, reflecting signs of profit booking from higher levels after hitting its all-time high of 56,098.70 on April 23. During the session, Bank Nifty opened at 54,918.25, traded within a range of 55,036.95 (high) and 54,172.95 (low), and closed at 54,271.40, indicating cautious sentiment in this space.
From a technical perspective, it remains above its key moving averages, indicating underlying strength. However, recent consolidation suggests a loss of momentum and a potential short-term pause in the uptrend. The RSI declined to 58 from 67 over the past two sessions, signalling weakening buying strength. Moreover, the MACD has shown a negative crossover, reflecting early signs of fading bullish momentum and a cautious outlook in the near term.
According to O'Neil’s methodology of market direction, Nifty Bank transitioned from an "Uptrend Under Pressure" to a “Confirmed Uptrend".
The index continues to trade in a sideways range, indicating ongoing consolidation at higher levels. Immediate support is seen near 53,500, which may help limit short-term downside. Looking ahead, the index is likely to remain range-bound between 53,500–55,000 in the coming days, unless a decisive breakout or breakdown occurs to trigger directional momentum.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
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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.
