Market Outlook: Nifty 50 Trade Strategies Amidst India-Pakistan Tensions – Top 8 Stocks to Buy or Sell This Monday

The stock market showcased a vibrant performance in the week concluding on May 2, with the Nifty-50 index wrapping up at an impressive 24,346.70, marking a 1.3% increase from the previous week. The Bank Nifty also climbed to 55,115.35, up 0.8%. Leading sectors included Realty, Pharmaceuticals, and Automobiles, while Metals, FMCG, and Utilities faced declines. Overall, the broader market experienced slight dips.

Trade Insights for Monday

Looking ahead to Monday’s trading session, analysts suggest that 24,200 will serve as a critical support level for the Nifty. If it holds steady above this mark, traders can expect a bullish trend aiming for 24,600–24,800. Conversely, slipping below 24,200 might push the index towards the 200-day Simple Moving Average (SMA) around 24,050, according to Amol Athawale, Vice President of Technical Research at Kotak Securities.

For Bank Nifty enthusiasts, the immediate resistance level stands at 55,800. A breakthrough here could propel the index to new heights, targeting 56,100–56,500, as Athawale noted.

Global Market Trends and Earnings Reports

The upcoming week is pivotal, laden with significant domestic and international events. Investors will closely monitor ongoing tariff discussions and geopolitical tensions involving Pakistan. On the economic front, attention turns to the HSBC Composite PMI and the HSBC Services PMI data. Additionally, the Federal Reserve’s interest rate decision on May 7 will be a focal point for discussions about potential future rate cuts, as highlighted by Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.

In the realm of corporate earnings, major firms such as M&M, Coal India, Asian Paints, L&T, Titan, Coforge, One 97 Communication, Pidilite Industries, and Dr. Reddy’s Labs are set to unveil their quarterly results, which will also attract significant attention.

Recommended Stocks for Today

Sumeet Bagadia, Executive Director at Choice Broking, has identified two promising stock picks for today. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager — Technical Research at Prabhudas Lilladher, have also put forth some recommendations.

Here are the stocks to consider:

CarTrade Tech Ltd
CreditAccess Grameen Ltd
NHPC Ltd
Chambal Fertilisers & Chemicals Ltd
State Bank of India
VA Tech Wabag Ltd
Sumitomo Chemical India Ltd
NCC Ltd

Sumeet Bagadia’s Top Picks

CarTrade Tech Ltd: Buy at ₹1768.2 with a target of ₹1900 and a stop-loss at ₹1700. The stock is showing a robust bullish recovery, having regained momentum after a period of selling pressure.
CreditAccess Grameen Ltd: Recommended entry at ₹1162.9, aiming for ₹1250 with a stop-loss at ₹1125. The stock has displayed a consistent uptrend and is currently in a consolidation phase, signaling potential for further gains.

Ganesh Dongre’s Recommendations

NHPC Ltd: Buy range of ₹85-86, targeting ₹91 with a stop-loss at ₹83. The stock’s bullish engulfing pattern suggests a strong rebound.
Chambal Fertilisers & Chemicals Ltd: Buy at ₹695, targeting ₹715, with a stop-loss at ₹685. Recent patterns indicate a trend reversal, making it an attractive buy.
State Bank of India: Entry recommended at ₹800, with a target price of ₹830 and a stop-loss at ₹785. The stock is showing signs of a bullish reversal, making it a viable investment.

Shiju Koothupalakkal’s Stock Picks

VA Tech Wabag Ltd: Buy at ₹1310, targeting ₹1370 with a stop-loss at ₹1280. The stock is poised for a significant pullback after recent profit booking.
Sumitomo Chemical India Ltd: Entry at ₹524, aiming for ₹550 with a stop-loss at ₹512. The stock is on the verge of a bullish breakout.
NCC Ltd: Recommended buy at ₹217.40, targeting ₹230 with a stop-loss at ₹212. The recent positive candle formation indicates continued upward momentum.