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Buy or sell stocks: The Indian benchmark indices — Sensex and Nifty 50 — closed in positive territory on Monday, May 4. Both indices surged over 1% during the day but trimmed gains due to profit booking as crude oil prices climbed more than 1%.
The 30-share Sensex ended 356 points, or 0.46%, higher at 77,269.40, while the Nifty 50 advanced 122 points, or 0.51%, to settle at 24,119.30.
The Nifty index began the session on a mildly positive note, opening approximately 70 points higher at 24,063.55. It initially extended its gains, reaching an intraday high of 24,290.20. However, the momentum faded early in the session, with the index slipping to a low of 24,004.75 before recovering and closing at 24,119.30. This marks a gain of 121.75 points (0.51%), indicating a modestly positive bias.
According to Sumeet Bagadia, Executive Director at Choice Broking, from a technical standpoint, the 24,250–24,300 range continues to serve as an immediate resistance zone, while strong support is seen in the 23,950–24,000 band.
“The daily RSI is at 52.18, suggesting neutral momentum with a slight bullish inclination. In the derivatives segment, significant put writing at the 24,000 strike along with aggressive call writing at the 24,300 strike indicates that the index is likely to remain range-bound in the near term. Considering this setup, traders are advised to adopt a cautious approach,” Bagadia said.
The banking benchmark index, Nifty Bank, started the session on a slightly positive note, opening about 78 points higher at 54,937.90. It continued its upward move in early trade and touched an intraday high of 55,602.30. However, selling pressure at elevated levels led to profit booking, resulting in a sharp decline of nearly 885 points from the peak, with the index slipping to a low of 54,723.5. It eventually closed at 54,878.50, posting a marginal gain of 15.15 points (0.03%), indicating a lack of clear directional momentum amid resistance at higher levels.
“From a technical perspective, the 55,500–55,600 range is acting as an immediate resistance zone, while the 54,300–54,500 band is providing strong support. The daily Relative Strength Index (RSI) is at 45.64, suggesting neutral momentum with a slight bearish tilt. Considering the current setup, traders are advised to remain cautious,” he added.
Amid ongoing tensions in US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Tuesday, 5 May: Cholamandalam Investment and Fin Co, NESCO, Shivalik Bimetal Controls, Shipping Corporation of India, and General Insurance Corporation of India.
1] Cholamandalam Investment and Fin Co: Buy at ₹1639, Target ₹1770, Stop Loss ₹1564
Cholamandalam share price is trading around 1639, showcases a highly bullish technical setup on the daily chart following a sharp V shaped recovery supported by massive trading volume. The stock has decisively broken out and is now trading above its crucial 20, 50, 100, and 200 days exponential moving averages which confirms a strong trend reversal. Furthermore, the daily relative strength index has comfortably crossed the 61 mark indicating accelerating upward momentum and sustained buying interest. Given this powerful price action the stock is perfectly positioned to reach an upside target of 1770. To effectively manage downside, risk a strict stop loss should be maintained at 1564.
2] NESCO: Buy at ₹1285, Target ₹1400, Stop Loss ₹1230
NESCO share price is currently trading at 1285, showcases a compelling bullish setup on the daily timeframe following a strong rounding bottom breakout with healthy trading volume. The stock has decisively surged above its key 20, 50, 100, and 200 days exponential moving averages, confirming a definitive trend reversal. Additionally, the daily relative strength index stands strong near 70, reflecting robust upward momentum and sustained buying interest. Given this positive price action, the stock is perfectly positioned to reach an upside target of 1400. To effectively manage downside risk, a strict stop loss should be maintained at 1230.
3] Shivalik Bimetal Controls: Buy at ₹625, Target ₹675, Stop Loss ₹595
Shivalik Bimetal Controls share price is currently trading at 625, exhibiting a powerful momentum breakout on the daily chart, surging above its previous swing highs with high-conviction price action. The stock has decisively reclaimed its 20, 50, 100, and 200-day EMA lines, which are now fanning out in a bullish alignment to support this vertical move. This breakout is backed by a significant increase in volume, indicating strong institutional participation as the stock enters a high-velocity "blue sky" phase. The RSI is currently at 72.60, reflecting intense bullish momentum that has entered the overbought zone, suggesting that while the trend is exceptionally strong, a brief period of consolidation or a retest of the breakout zone could occur. This technical setup indicates a dominant uptrend as the stock clears major resistance levels. Maintain a strict stop loss at 595 to protect capital, aiming for a primary target of 675.
4] Shipping Corporation of India: Buy at ₹318.5, Target ₹340, Stop Loss ₹301
Shipping Corporation of India share price is currently trading at 318.5, displays a powerful technical structure on the daily chart following a massive breakout from a prolonged consolidation pattern with exceptional trading volume. The stock trades confidently above its key 20, 50, 100, and 200 days exponential moving averages confirming a robust underlying bullish trend. Furthermore, the daily relative strength index is positioned near 73 indicating accelerating upward momentum and sustained buying interest. Given this favourable price action the stock is perfectly positioned to achieve an upside target of 340. To effectively manage downside, risk a strict stop loss must be maintained at 301.
5] General Insurance Corporation of India: Buy at ₹409.3, Target ₹440, Stop Loss ₹393
General Insurance Corporation of India share price is trading around 409.3, showcasing a strong bullish breakout on the daily chart as it successfully clears a protracted accumulation zone. The price action reflects a significant structural shift, with the stock reclaiming all its major exponential moving averages (20, 50, 100, and 200-day EMA), which are now beginning to fan out in a positive alignment. This move is supported by a noticeable increase in buying interest, as evidenced by the series of higher lows and the current surge above immediate resistance levels. The RSI is trending upward at 65.27, indicating robust bullish momentum that remains comfortably below the overbought threshold, suggesting ample room for further price appreciation. This breakout marks a definitive transition from a consolidation phase to a trending one. Maintain a strict stop loss at 393 to protect capital, aiming for a primary target of 440.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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