Motilal Oswal Analyst Recommends Three Stocks for Purchase on 5 May 2026

Indian Stock Market Expected to Open Lower on Tuesday

The Indian stock market is anticipated to open lower on Tuesday, following weakness in global markets, as rising tensions in the Middle East weigh on risk sentiment. The trends on Gift Nifty indicate a negative start for the Indian benchmark indices, Nifty 50 and Sensex today.

The Gift Nifty was trading around 24,080 level, a discount of nearly 126 points from the Nifty futures' previous close. The Indian stock market ended higher in the previous session, with the benchmark Nifty 50 closing above 24,100 level. The Sensex surged 355.90 points, or 0.46%, to close at 77,269.40, while the Nifty 50 settled 121.75 points, or 0.51%, higher at 24,119.30.

Nifty Options Front

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On the Nifty options front, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services, noted that the maximum Call Open Interest (OI) is at 24,200, then 24,300 strike, while maximum Put OI is at 24,000, then 24,100 strike. Taparia also observed that Call writing is seen at 24,200, then 24,300 strike, while Put writing is seen at 24,100, then 24,000 strike.

Option Data Suggests Trading Range

Option data suggests a broader trading range in between 23,600 to 24,500 zones, while an immediate range between 23,800 to 24,300 levels. This information implies that investors should be cautious and wait for a clearer direction in the market.

Nifty 50 Outlook

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The Nifty 50 index formed a small bodied bullish candle on the daily frame with higher upper shadow. Now, Nifty 50 has to hold above 24,000 zones for an up move towards 24,350, then 24,500 zones, while supports are placed at 24,000, then 23,800 zones.

Bank Nifty Outlook

Bank Nifty index ended 15.15 points, or 0.03%, higher at 54,878.50 on Monday and a small bodied candle with long upper shadow as momentum is missing at higher zones but multiple supports are intact at lower levels. Now, Bank Nifty index has to hold above 54,750 zones for a bounce towards 55,500, then 55,750 levels, while on the downside, support is seen at 54,500, then 54,250 zones.

Stocks to Buy

Chandan Taparia has recommended three stocks to buy today, 5 May 2026. Taparia recommends buying Bharat Heavy Electricals Ltd (BHEL), Manappuram Finance, and Polycab India shares.

BHEL

BHEL share price has given an inside bar breakout on the daily chart indicating expansion after consolidation. The stock has also surpassed its previous all-time high from 2007 signaling a major long-term breakout. The move is backed by rising volumes, reflecting strong participation and bullish conviction. Taparia recommends buying BHEL shares for a target price of ₹400 apiece, while maintaining a stop loss at ₹365 level.

Manappuram Finance

Manappuram Finance share price has given a breakout from a falling trendline and moved above key resistance levels. The stock is now forming higher highs and holding above the breakout zone. RSI is above 60 and rising, supporting the bullish momentum. Taparia has a 'Buy' call on Manappuram Finance shares, with a target price of ₹325 apiece and a stop loss of ₹295.

Polycab India

Polycab India share price is on the verge of a pole and flag breakout, indicating potential continuation of the ongoing uptrend. The stock is forming higher highs and is trading above key moving averages, reflecting strength in the trend. Taparia suggests buying Polycab India shares for a target price of ₹8,844 apiece, while keeping a stop loss at ₹8,100 level.