Top 3 stocks to buy today. Expert Ankush Bajaj's picks for 7 May
Summary
Top three stocks to buy today: Discover Ankush Bajaj's expert stock picks for Wednesday, 7 May. Get insights into top-performing stocks and informed investment decisions.
Stock market today: Indian stock markets ended lower on Tuesday, 6 May, as rising tensions between India and Pakistan, coupled with weak global cues ahead of the US Federal Reserve’s policy decision, dampened investor sentiment.
The Sensex fell 156 points, or 0.19%, to close at 80,641, while the Nifty 50 declined 82 points, or 0.33%, to end at 24,379.60.
Top three stocks to buy today, recommended by Ankush Bajaj:
Buy: Max Healthacre Ltd (current price: ₹1,156)
- Why it’s recommended: Stock has closed above ₹1145 which was a key resistance level on the daily chart. This breakout signals a shift in momentum. Price action confirms strength with bullish candlesticks and consistent volumes during the move. RSI is also trending upward, showing improving momentum.
- Key metrics: Resistance level: ₹1,145 (breakout level), Support level: ₹1,128 (recent swing low), Pattern: Horizontal resistance breakout on daily chart, Volume: Healthy and increasing
- Technical analysis: Price action confirms a breakout with follow-through buying and strong daily close above resistance. RSI is rising, validating the bullish setup. Previous resistance now acts as a support.
- Risk factors: Healthcare sector stocks may react to policy or regulatory news. If the stock fails to hold above ₹1,145, breakout might get invalidated.
- Buy at: ₹1,156
- Target price: ₹1,200– ₹1,220 in 1 week
- Stop loss: ₹1,128
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Buy: HDFC Life (current price: ₹722.60)
- Why it’s recommended: Stock is in a strong uptrend, characterized by a sequence of higher highs and higher lows. The stock recently broke out of a consolidation range around ₹720– ₹735 with a big surge in price. This breakout was confirmed by heavy volume, reflecting genuine buying interest from the market.
- Key metrics: Resistance level: ₹735 (upper end of previous range), Support level: ₹690 (swing support), Pattern: Consolidation breakout, Volume: High breakout volume
- Technical analysis: Price action confirms breakout with strong follow-through. RSI is in bullish zone, and stock is trading above key moving averages, further supporting the uptrend.
- Risk factors: Broader market weakness or reversal could impact performance. If price falls below ₹690, breakout could be invalidated.
- Buy at: ₹722.60
- Target price: ₹775– ₹790 in 1 week
- Stop loss: ₹690
Buy: Apollo Tyre Ltd (current price: ₹482.85)
- Why it’s recommended: Apollo Tyres has broken out above a major resistance (~ ₹440) formed by a double bottom pattern. This pattern breakout signals a trend reversal to the upside. The stock is now trading above key moving averages, reflecting renewed upward momentum. The RSI momentum indicator has rebounded from the 60 level and now resides in bullish territory, confirming strengthening momentum.
- Key metrics: Resistance level: ₹440 (double bottom breakout), Support level: ₹468 (near-term swing low), Pattern: Double bottom breakout, Volume: Strong volume during breakout
- Technical analysis: Price action confirms trend reversal with breakout above neckline. Sustained closing above moving averages with bullish RSI supports further upside.
- Risk factors: Sector rotation or market-wide correction may affect short-term trend. Breakdown below ₹468 may invalidate setup.
- Buy at: ₹482.85
- Target price: ₹505– ₹510 in 1 week
- Stop loss: ₹468
Market update: Indices end lower amid geopolitical concerns
India's equity benchmarks ended in the red on Tuesday, 6 May, weighed down by escalating tensions between India and Pakistan and weak global cues ahead of the US Federal Reserve’s policy decision.
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The market opened on a positive note with a gap-up, but early optimism faded quickly as geopolitical concerns took hold, triggering a sharp sell-off in the first half of the session. The spike in India VIX reflected rising investor nervousness.
Unlike recent sessions that saw late-day recoveries, Tuesday’s action remained subdued after the initial fall. Indices moved sideways through midday with no meaningful bounce, as selling pressure persisted across key sectors and broader market sentiment remained weak.
The Nifty 50 closed 81.55 points lower (0.33%) at 24,379.60, while the BSE Sensex declined 155.77 points (0.19%) to settle at 80,641.07. The Bank Nifty underperformed, shedding 648.10 points (1.18%) to end at 54,271.40 amid heavy selling in banking stocks.
Sectoral performance
Auto was the only sectoral gainer, rising 0.17% on the back of stable demand trends and positive global cues. In contrast, PSU Banks plunged 4.84% amid profit booking and heightened risk aversion. Realty declined 3.58%, while the Energy sector dropped 2.35% as global demand concerns and geopolitical uncertainty weighed on sentiment.
Stock highlights
Hero MotoCorp led the gainers with a 2.79% rise, followed by Bharti Airtel (1.88%) and Tata Steel (1.66%). On the downside, Adani Enterprises slumped 4.13%, Jio Financial fell 3.61%, and Eternal dropped 3.03%, reversing recent gains in the face of broader market volatility.
Nifty technical analysis
On the daily timeframe, Nifty 50 has been in a clear short-term uptrend since early April, characterized by higher highs and higher lows. The index recently rallied almost vertically for three consecutive weeks, but it is now facing strong resistance in the 24,500–24,600 zone.
Overall, the primary trend on the daily chart remains bullish – Nifty is trading above all its major moving averages, and a recent “golden crossover" (50-day moving average crossing above the 200-day) further strengthens the bullish structure.
However, the repeated failure to break above 24,500 in recent sessions indicates that the uptrend is currently pausing near a key resistance level.
On the hourly timeframe, Nifty’s trend has shifted to sideways with a slightly bearish bias in the very near term following a strong upward move. The hourly chart shows a potential double top formation around the 24,500 mark – the index made a high of approximately 24,588 on May 2 and formed a lower high near 24,526 on May 5, failing to sustain above the 24,500 level on both occasions.
Additionally, Nifty has closed below the 20-hour moving average (24400) and is now hovering near the 40-hour exponential moving average (24336), which indicates a possible rise in selling pressure in the coming sessions.
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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.
