Top three stocks to buy today, 6 May, recommended by Ankush Bajaj

The Sensex closed with a gain of 295 points, or 0.37%, at 80,796.84, while the Nifty 50 settled at 24,461.15, up 114 points. The mid and small-cap segments strongly outperformed. The BSE Midcap jumped 1.45%, while the smallcap index climbed 1.23%.

Top three stocks to buy today, recommended by Ankush Bajaj:

Buy: Adani Enterprises Ltd (current price: ₹2,455)

Why it’s recommended: Stock has created a double top at the ₹2,480 level, after which some selling was observed. However, it has retested its important level of ₹2,440 and resumed a bullish trend. Daily volumes remain high, and on the daily chart, the stock had formed a double bottom at ₹2,035 and has given a good breakout recently.

Key metrics: Resistance level: ₹2,480 (double top), Support level: ₹2,440 (retest), Pattern: Double bottom breakout at ₹2,035 (daily chart), Volume: High daily volume

Technical analysis: Price action shows successful retest of key level and resumption of bullish momentum. Volume and double bottom confirmation support further upside.

Risk factors: Sensitive to regulatory news and group-level volatility, especially in the infrastructure and energy sectors.

Buy at: ₹2,455

Target price: ₹2,500– ₹2,530 in 1 week

Stop loss: ₹2,420

Read this | These five stocks are proof that value investing is far from dead

Buy: Mahindra & Mahindra (current price: ₹3,021)

Why it’s recommended: On the daily chart, the stock gave a falling wedge breakout at ₹2,700, after which a strong rally followed, pushing the price above ₹3,000. This rally is expected to continue towards ₹3,150 in the short term, as the next supply zone lies around that level. The stock has also broken its 61.8% Fibonacci retracement level, which further confirms the bullish trend.

Key metrics: Breakout level: ₹2,700 (falling wedge breakout), Target zone: ₹3,150 (supply zone), Technical level: Broke 61.8% Fibonacci retracement

Technical analysis: Breakout from bullish falling wedge with follow-through buying. Breach of 61.8% retracement adds conviction to the trend continuation.

Risk factors: Auto sector can be affected by raw material costs, policy changes, and rural demand trends.

Buy at: ₹2,920– ₹2,950

Target price: ₹3,150– ₹3,170 in 1 week

Stop loss: ₹2,945

Read this | Mahindra surges ahead of industry, brushing aside slowdown concerns

Buy: Bajaj Finance Ltd (current price: ₹8,932)

Why it’s recommended: Stock has given a bullish pennant breakout on the lower time frame, indicating strong continuation potential. Additionally, the hourly RSI is trending upward and is currently at 55 levels, supporting the bullish momentum.

Key metrics: Pattern: Bullish pennant breakout (lower time frame), RSI: Trending up at 55 (hourly)

Technical analysis: Breakout pattern on intraday chart supported by rising RSI suggests further upside. Structure indicates momentum-driven move toward next resistance zone.

Risk factors: NBFCs are exposed to interest rate changes, credit cycle risk, and macroeconomic conditions.

Buy at: ₹8,932

Target price: ₹9,100– ₹9,140 in 1 week

Stop loss: ₹8,848

Market update: Indices end higher after intraday swing

On Monday, 5 May, Indian equities ended higher after a choppy trading session marked by a sharp intraday swing.

Benchmark indices opened with a gap-up, buoyed by strong global cues, but quickly gave up early gains as a steep mid-morning decline rattled sentiment. The spike in India VIX reflected mounting investor nervousness. However, selective large-cap buying helped drive a late-session recovery, allowing the market to close in the green.

The Nifty 50 ended 114.45 points higher (0.47%) at 24,461.15, while the BSE Sensex rose 294.85 points (0.37%) to settle at 80,796.84. The Nifty Bank, however, underperformed, ending 195.85 points lower (0.36%) at 54,919.50 after an early rebound gave way to volatility

Sectoral trends

Auto stocks led the gains on Monday, with a 1.85% rise, supported by improved sentiment and upbeat global cues. Oil & Gas followed closely with a 1.70% gain, aided by continued institutional interest. The consumption pack also saw healthy buying, rising 1.48% amid steady demand.

On the flip side, the banking index declined 0.36%, dragged by profit-taking and uneven earnings reports. PSU banks were marginally lower (–0.04%), while metals and energy stocks remained under pressure due to global demand concerns.

Stock highlights

Adani Enterprises (+7.03%), Adani Ports (+6.31%), and Trent (+4.32%) were among the standout gainers. On the downside, Kotak Mahindra Bank slipped 4.59% after a weak Q4 showing. JSW Steel (–1.82%) and ONGC (–1.73%) also declined as recent gains were pared amid sectoral pressure.

Nifty technical analysis

On the daily chart, Nifty continues to hover near the key supply zone of 24,530–24,777. The latest candle resembles a shooting star, indicating selling pressure from higher levels and signs of intraday exhaustion. As noted in our previous report, the 24,550 target was achieved but not convincingly breached.

While the broader trend remains upward, the index appears to be pausing near current levels. A decisive move above 24,800 would confirm a clear continuation of the uptrend.

Momentum indicators remain supportive—RSI is holding at 65, and the MACD continues to signal strength with a positive crossover. As long as the index stays above the 24,200 mark, the bullish structure remains intact.

Also read | Q4 earnings watch: Banks' income hits an 8-quarter high, but not because of loans

On the hourly chart, we are trading above the 20-HMA (23,637) and above the 40-HEMA (23,537), showing continued strength. RSI is upward sloping and MACD is still positive, indicating momentum is intact.

Still, buy on dips is advisable, though caution is warranted near resistance.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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 guarantee 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.