Stocks to Watch: Sumeet Bagadia Identifies Five Shares for Potential Investment Amid US-Iran Tensions Easing

Indian Stock Market Posts Solid Gains Amid Global Uncertainty

The Indian stock market demonstrated resilience on Tuesday, April 7, as the Sensex and Nifty 50 indices posted solid gains, marking their fourth consecutive session of advances. The market's performance comes amidst the ongoing US-Iran conflict, elevated crude oil prices, and continued selling by foreign institutional investors (FIIs).

Market Performance

The Sensex ended at 74,616.58, up 510 points or 0.69%, while the Nifty 50 climbed 155 points, or 0.68%, to close at 23,123.65. The Nifty 50 demonstrated strong support on the daily timeframe, closing in the green for the third consecutive session after recovering from lower levels.

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The Nifty 50 opened at 22,838.70 with a gap-down of nearly 120 points and extended its decline to an intraday low of 22,719.30 during early trading hours. However, it witnessed a sharp recovery thereafter, not only filling the intraday gap but also breaking above the 23,000 mark.

Technical Analysis

According to Sumeet Bagadia, Executive Director at Choice Broking, the 23,250-23,300 zone has emerged as an immediate resistance, while a strong support base appears to be forming in the 22,900-22,940 range. The daily RSI stands at 43.46, indicating a gradual recovery from weaker momentum while still remaining below the neutral zone. Meanwhile, India VIX declined by 3.03% to 24.69, reflecting a slight easing in market volatility and improved investor sentiment.

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

Bank Nifty Performance

The banking benchmark index, Nifty Bank, began the trading session on a negative note with a gap-down of nearly 285 points. The index extended its decline to 51,868 in the early phase and remained in a consolidation range for some time. However, it later witnessed a strong breakout above the 52,300 resistance level, leading to a sharp upward move.

Stock Recommendations

Sumeet Bagadia recommends five shares to buy on Wednesday, April 8:

1. Godawari Power and Ispat Limited: Buy at ₹285, Target ₹300, Stop Loss ₹273
2. Data Patterns (India): Buy at ₹3209, Target ₹3400, Stop Loss ₹3088
3. Welspun Corp: Buy at ₹879, Target ₹940, Stop Loss ₹837
4. Sarda Energy & Minerals: Buy at ₹528, Target ₹565, Stop Loss ₹505
5. DEE Development Engineers: Buy at ₹313, Target ₹335, Stop Loss ₹295