MarketSmith Analyst Raja Venkatraman Identifies Five Stocks for Trading on April 7

Indian Stock Market Witnesses Notable Recovery

The benchmark indices, Sensex and Nifty 50, experienced a significant resurgence on Monday, April 6, after an initial decline in early trading. The downturn was attributed to a decrease in crude oil prices and reports of ceasefire negotiations in the ongoing conflict in West Asia. However, strong demand for banking and IT shares, coupled with a rising rupee, bolstered investor confidence, according to traders.

During a session marked by volatility, the 30-share BSE Sensex soared by 787.30 points or 1.07%, closing at 74,106.85. At its peak, the index climbed 887.91 points or 1.21%, reaching 74,207.46. The Nifty 50 also rose, gaining 255.15 points or 1.12%, to finish at 22,968.25.

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The Gift Nifty Live Chart indicated a negative start for the Indian stock market on April 7, with a discount of 166 points from the Nifty futures' previous close of 23,057. According to Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, the Indian markets are likely to open on a flat note, with the Gift Nifty indicating a muted start ahead of the weekly expiry.

Global cues offer some support, but the overall sentiment remains cautious, with markets continuing to track developments around the ongoing US-Iran conflict. The Dow Jones extended its gains, supported by a slight cooling in oil prices and optimism around a potential resolution to the conflict. Asian markets, such as Japan's Nikkei and South Korea's Kospi, are also trading higher, reflecting this cautious optimism.

However, mixed messaging from US leadership and the absence of a concrete ceasefire framework continue to keep uncertainty elevated. Iran's rejection of the US proposal and its counter-conditions suggest that negotiations remain fluid, keeping geopolitical risk firmly in play.

Stocks to Buy on April 7

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MarketSmith India and NeoTrader have recommended buying the following five shares:

1. HDFC Bank Ltd (current price: ₹771)
   • Buy above ₹775, stop ₹730, target ₹895 (multiday)
   • Why it's recommended: Fresh momentum is observed as trading volumes begin to accelerate. The bank reported healthy deposit growth, with the CASA ratio improving by 54 basis points sequentially to 34.1%.
2. RBL Bank Ltd (current price: ₹318.15)
   • Buy above ₹318, stop ₹290, target ₹365 (multiday)
   • Why it's recommended: The stock has successfully absorbed recent selling pressure and is stabilizing at a critical value area support near ₹290.
3. Federal Bank Ltd (current price: ₹271.50)
   • Buy above ₹272, stop ₹257, target ₹298 (multiday)
   • Why it's recommended: The stock is currently consolidating as it awaits a catalyst to trigger its next leg up.
4. Titan Co. Ltd (current price: ₹4,246)
   • Buy: ₹4,230–₹4,255, target price: ₹4,700 in two to three months, stop loss: ₹4,030
   • Why it's recommended: Strong brands, market leadership, steady growth, retail expansion, rising demand, strong balance sheet, product diversification, high ROE/ROCE.
5. Schneider Electric Infrastructure Ltd (current price: ₹926)
   • Buy at: ₹920–₹935, target price: ₹1,040 in two to three months, stop loss: ₹880
   • Why it's recommended: Strong parentage, exposure to power & infra sector, beneficiary of capex cycle, improving revenue growth, high operating leverage potential, capacity expansion plans, strong order inflow visibility, improving margins outlook.