Investor Strategist Suggests Three Stocks to Purchase on Monday, May 4, 2026
Indian Stock Market Witnesses Sharp Selling Amid Global Market Sentiments
The Indian stock market experienced a significant downturn on Thursday, with the Nifty 50 index plummeting 180 points to close at 23,997. The BSE Sensex also saw a sharp decline of 582 points, closing at 76,913, while the Bank Nifty index finished 540 points lower at 54,863.
The sell-off was widespread, with several sectors, including metals, realty, and FMCG, ending in the red, while the IT sector showed relative strength. This trend was mirrored in the broader markets, with midcap and smallcap indices declining by around 0.4-0.8%, indicating a high level of risk aversion.
Market Outlook Remains Cautious
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According to Sumeet Bagadia, Executive Director at Choice Broking, the Indian stock market bias remains cautious. Bagadia points out that a Doji-like candlestick pattern has formed, indicating indecision in the market and a balance between buying and selling pressure.
In the Nifty 50 index, Bagadia notes that the index opened with a gap down at 23,996.95 and saw selling pressure in the first half, falling to an intraday low of 23,796.85. However, buying interest emerged in the latter half, driving the index to an intraday high of 24,087.45. The index eventually closed near its opening level at 23,997.55, down 180.10 points, or 0.74%, from its previous close.
| Index | Thursday's Close | Change |
|---|---|---|
| Nifty 50 | 23,997 | -180.10 (-0.74%) |
| BSE Sensex | 76,913 | -582 points |
| Bank Nifty | 54,863 | -540 points |
Stock Recommendations
Sumeet Bagadia recommends the following stocks for buying:
- Reliance Industries: Buy at ₹1430, Target ₹1520, Stop Loss ₹1385. Reliance Industries is witnessing a strong rebound from its recent lows and is currently trading near ₹1430, indicating a shift in short-term sentiment.
- Kotak Mahindra Bank: Buy at ₹383, Target ₹410, Stop Loss ₹365. Kotak Mahindra Bank is gradually recovering after a sharp decline and is currently trading near ₹383. The stock has bounced strongly from the ₹365 zone, which has emerged as a crucial support base.
- Sun Pharma: Buy at ₹1808, Target ₹1950, Stop Loss ₹1725. Sun Pharma is gradually regaining upward momentum after establishing a strong base near the 1613 zone and has reclaimed its short- to medium-term moving averages, indicating strengthening bullish momentum.
Investor Takeaway
Investors should be cautious and consider a wait-and-watch approach due to the adverse global market sentiments.
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