Market Strategist Identifies Five Stocks as Buys Amid Ongoing Market Trends

Indian Benchmark Indices Close in Positive Territory

On Monday, May 4, the Indian benchmark indices, Sensex and Nifty 50, closed in positive territory. 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.

Nifty 50 Performance

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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.

Bank Nifty Performance

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.

Sumeet Bagadia's Recommendation

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Amid ongoing tensions in US-Iran war uncertainty, Sumeet Bagadia, Executive Director at Choice Broking, recommends five shares to buy on Tuesday, 5 May:

Each of these stocks showcases a strong technical setup, with significant price action and momentum indicators suggesting a dominant uptrend. Bagadia advises traders to adopt a cautious approach and maintain a strict stop loss to protect capital.

Technical Analysis

The daily RSI for the Nifty 50 is at 52.18, suggesting neutral momentum with a slight bullish inclination. The daily RSI for Nifty Bank is at 45.64, suggesting neutral momentum with a slight bearish tilt.

Conclusion

The Indian benchmark indices closed in positive territory on Monday, May 4, despite profit booking due to crude oil price increases. The Nifty 50 and Nifty Bank indices trimmed gains but still posted modestly positive bias. Sumeet Bagadia recommends five shares to buy, each with a strong technical setup and significant price action, suggesting a dominant uptrend.