Laurus Labs, Data Patterns, Syrma SGS Identified as Potential Stocks to Consider by Market Analyst Sagar Doshi

Stock Market Today: Nifty 50 and Sensex Decline Amid Escalating Middle East Conflict

The domestic benchmark indices, Nifty 50 and Sensex, witnessed declines on Tuesday, April 7, impacted by concerns over an escalation in the conflict in the Middle East and a critical deadline set by US President Donald Trump for reaching an agreement. The Nifty 50 dropped by 0.65% to 22,818.80, while the Sensex decreased by 0.64% to 73,639.40 as of 9:50 IST.

Fourteen out of the 16 major sectors saw a downturn. Additionally, the broader small-cap and mid-cap indices fell by 0.5% and 1%, respectively. The US president has repeated threats to target Iran's power facilities and civilian infrastructure unless a deal is reached by 8 p.m. EDT Tuesday, or 5:30 a.m. IST on Wednesday, to reopen the Strait of Hormuz. Iran stated that it seeks a lasting resolution to the conflict rather than a temporary truce.

Brent Crude Prices Remain Elevated at $112 per Barrel

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

High crude prices are putting pressure on India's import expenses and impacting economic growth and corporate profit margins. The Nifty 50 and Sensex have both fallen by 9.5% since the onset of the Iran war on February 28.

Market Outlook

According to Sagar Doshi, Senior Vice President-Research, Nuvama Professional Clients Group, the Nifty 50 has made a new 3-day high after witnessing the largest intraday pullback ever since the war started. Going forward, dips to sub 22,700-800 are expected to be bought for the target of 23,300-23,400 in the short term.

Bank Nifty Recoveries

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The Bank Nifty also covered all its last week's losses, witnessing an over 1,500 points intraday recovery during the session. Dips to sub 52,000 level would be bought for a target of 54,000-54,500.

Stocks to Buy on Tuesday

Sagar Doshi of Nuvama recommended three stocks to buy on Tuesday: Laurus Labs Ltd, Data Patterns (India) Ltd, and Syrma SGS Technology Ltd.

Each of these stocks has shown resilience in the face of market downturns. Laurus Labs Ltd has been consolidating since the last couple of months, taking support at its 21-day EMA. Data Patterns (India) Ltd is digesting its gains and consolidating around its 20 DMA. Syrma SGS Technology Ltd is witnessing strong volumes on up-days, showing signs of accumulation.