Financial Analyst Sumeet Bagadia Identifies Top Investment Picks for May 7, 2026
Indian Stock Market Surges Amid US-Iran Tensions
The Indian benchmark indices, the Sensex and Nifty 50, experienced a significant rally on Wednesday, May 6, with both indices closing higher by over 1%. The Sensex surged by 941 points, or 1.22%, to close at 77,958.52, while the Nifty 50 settled at 24,330.95, up 298 points, or 1.24%.
According to market analysts, the uptrend was driven by reports of a potential agreement between the US and Iran to end their conflict. The Sensex touched a high of 78,022.78 during intraday trade, while the Nifty 50 climbed to an intraday peak of 24,356.50.
Market Performance
| Index | Previous Close | Intraday High | Intraday Low | Closing Price | Gain/Loss |
|---|---|---|---|---|---|
| Sensex | 77,017.60 | 78,022.78 | 76,077.20 | 77,958.52 | 941 (1.22%) |
| Nifty 50 | 24,032.80 | 24,356.50 | 23,997.90 | 24,330.95 | 298 (1.24%) |
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 an intraday low of 23,997.90. However, strong buying interest emerged near the 24,000 level, pushing the index higher to an intraday high of 24,356.50.
Technical Analysis
According to Sumeet Bagadia, Executive Director at Choice Broking, 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. The Relative Strength Index (RSI) stands at 55.41, moving above the midpoint of 50, indicating strengthening momentum and improving bullish sentiment.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Bank Nifty Performance
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. However, strong buying interest in the latter half led to a sharp recovery, pushing the index to an intraday high of 56,078.80.
Stock Recommendations
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five shares to buy on Thursday, May 7:
- Welspun Living: Buy at ₹132.91, Target ₹144, Stop Loss ₹126.80
- BLS International Services: Buy at ₹286.70, Target ₹308, Stop Loss ₹273
- Gujarat Fluorochemicals: Buy at ₹3810.70, Target ₹4050, Stop Loss ₹3675
- Jubilant Ingrevia: Buy at ₹742.10, Target ₹800, Stop Loss ₹710
- Karur Vysya Bank: Buy at ₹305.20, Target ₹332, Stop Loss ₹292
These stocks are expected to benefit from the positive market sentiment and are recommended for buying with the specified target prices and stop loss levels.
Investor Takeaway
Investors should consider buying stocks as the Indian benchmark indices rallied over 1% each on Wednesday.
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