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Buy or sell stocks: The Indian benchmark indices — the Sensex and Nifty 50 — rallied over 1% each on Wednesday, May 6, following reports that the US and Iran were close to reaching an agreement to end their conflict.
During intraday trade, the Sensex surged more than 1,000 points, or over 1%, to hit a high of 78,022.78, while the Nifty 50 climbed to the day’s peak of 24,356.50.
Although the indices trimmed some gains later, the 30-share Sensex closed 941 points, or 1.22%, higher at 77,958.52, while the Nifty 50 settled at 24,330.95, up 298 points, or 1.24%.
The Indian benchmark indices, Sensex and Nifty 50, rallied over 1% each on May 7, 2026. This surge was primarily driven by reports that the US and Iran were nearing an agreement to end their conflict, leading to easing geopolitical tensions and improved investor sentiment.
Sumeet Bagadia recommended five shares to buy on May 7, 2026: Welspun Living, BLS International Services, Gujarat Fluorochemicals, Jubilant Ingrevia, and Karur Vysya Bank.
Sumeet Bagadia noted that the Nifty 50 formed a positive hammer-like candlestick pattern, indicating strong buying interest at lower levels. Immediate support is seen at 24,000–24,050, with resistance between 24,550 and 24,650. The RSI at 55.41 suggests strengthening momentum.
According to Sumeet Bagadia, immediate support for the Bank Nifty is placed in the 55,300–55,400 range, while resistance is seen in the 56,600–56,700 zone. The RSI is around 50.02, indicating improving but neutral momentum.
On May 6, 2026, Indian equities ended higher with the Sensex closing up 940.73 points and the Nifty 50 up 298.15 points. The rebound was fueled by easing geopolitical tensions, a decline in crude prices, and strong buying in financials, autos, and healthcare stocks.
On Wednesday, the Nifty 50 opened with a strong gap-up at 24,171.00 and witnessed selling pressure in the first half, leading to a gap fill and marking an intraday low of 23,997.90. In the latter half, strong buying interest emerged near the 24,000 level, pushing the index higher to an intraday high of 24,356.50. The index eventually closed near the day’s high at 24,330.95, registering a gain of 298.15 points or 1.24% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a positive hammer-like candlestick pattern indicates strong buying interest at lower levels and the presence of demand near key support zones.
“From a technical perspective, immediate support is placed in the 24,000–24,050 range, while resistance is observed between 24,550 and 24,650 levels. The Relative Strength Index (RSI) stands at 55.41, moving above the midpoint of 50, indicating strengthening momentum and improving bullish sentiment. In the derivatives segment, notable call writing was seen at the 24,500 strike, followed by 24,600, while significant put writing was observed at 24,200 and 24,100 levels, indicating near-term support zones,” said Bagadia.
The Bank Nifty index opened with a strong gap-up at 55,113.40 and witnessed selling pressure in the first half, marking an intraday low of 54,587.20 after filling the opening gap. However, strong buying interest in the latter half led to a sharp recovery, pushing the index to an intraday high of 56,078.80. The index closed near its day’s high at 55,981.05, gaining 1,434 points or 2.63% for the day. On the daily timeframe, the formation of a strong bullish candlestick pattern reflects sustained buying interest and a positive shift in momentum.
“From a technical standpoint, immediate support is placed in the 55,300–55,400 range, while resistance is seen in the 56,600–56,700 zone. The Relative Strength Index (RSI) stands at 50.02, hovering around the midpoint level of 50, indicating improving but still neutral momentum. Sustaining above this level would be important to confirm further strength,” said Bagadia.
He further advised staying aligned with the trend and looking for buying opportunities on dips while monitoring price action near important levels, as the recent price action suggests a strong recovery session following initial weakness, with both indices rebounding sharply from lower levels.
The undertone has turned positive, supported by easing volatility and renewed buying interest. Sustaining above key support levels and a decisive move beyond resistance zones will be crucial to confirm continuation of the upward trend, he added.
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Thursday, 7 May: Welspun Living, BLS International Services, Gujarat Fluorochemicals, Jubilant Ingrevia, and Karur Vysya Bank.
1] Welspun Living: Buy at ₹132.91, Target ₹144, Stop Loss ₹126.80
Welspun Living share price is trading around 132.91, encouraging a technical setup on the daily chart characterised by a strong breakout from a distinct double bottom formation. The stock is currently trading comfortably above its crucial 20, 50, 100 and 200-day exponential moving averages, which validates the underlying bullish momentum. Furthermore, the daily relative strength index is positioned near 62, reflecting solid buying interest and upward strength. Given this highly positive price action, the stock is well-positioned to reach an upside target of 144. To effectively manage downside, a strict stop loss should be maintained at 126.8.
2] BLS International Services: Buy at ₹286.70, Target ₹308, Stop Loss ₹273
BLS International Services share price is currently trading at 286.7, displaying an encouraging technical setup on the daily chart following a solid recovery from recent lows with supportive volume. The stock has successfully reclaimed its key 20, 50 and 100-day exponential moving averages, indicating a positive shift in short-term momentum. Furthermore, the daily relative strength index is steadily rising near 56, confirming growing buying interest and underlying strength. Given this favourable price action, the stock is well positioned to reach an upside target of 308. To effectively manage downside, a strict stop loss should be maintained at 273.
3] Gujarat Fluorochemicals: Buy at ₹3810.70, Target ₹4050, Stop Loss ₹3675
Gujarat Fluorochemicals share price is currently trading at 3810.7, revealing a compelling structural shift as the price action sharply rebounds from its lower base. The stock has successfully reclaimed territory above the 20, 50, 100, and 200-day exponential moving averages, signalling a definitive trend reversal. Alongside this positive price action, the daily relative strength index has pushed up near 76, highlighting intense buying pressure and sustained market interest. Supported by this robust underlying momentum, the asset looks primed to challenge the upside target of 4050. To defend against sudden market reversals, a strict stop loss should be firmly held at 3675.
4] Jubilant Ingrevia: Buy at ₹742.10, Target ₹800, Stop Loss ₹710
Jubilant Ingrevia share price is currently trading at 318.5, demonstrating a remarkable V-shaped recovery on the daily timeframe, characterised by a swift breakout above previous resistance zones with massive volume. The asset is currently trading exceptionally well above its critical 20, 50, 100, and 200-day exponential moving averages, which firmly establishes a new bullish trajectory. In tandem, the daily relative strength index has comfortably surged past 70, underscoring intense buying pressure and dominant upward momentum. Backed by this highly constructive technical architecture, the stock appears fully primed to advance toward a target of 800. To preserve capital, a strict stop loss should be placed at 710.
5] Karur Vysya Bank: Buy at ₹305.20, Target ₹332, Stop Loss ₹292
Karur Vysya Bank share price is trading around 409.3. Stocks present a highly constructive technical structure on the daily chart as it successfully emerges from a recent basing period. The price action has decisively reclaimed territory above its key twenty-five and one-hundred-day exponential moving averages, signalling a clear resumption of the primary uptrend. Concurrently, the daily relative strength index is trending upward near sixty, indicating strengthening momentum and renewed buyer interest. Supported by this favourable setup, the equity looks well prepared to challenge an upside target of 332. To effectively manage downside exposure, a strict stop loss should be maintained at 292.
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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