The domestic equity benchmarks rallied on May 4, with Nifty 50 increasing by 1% to 24,236.60 and BSE Sensex gaining 1% to 77,690.67 by 11:43 IST. According to reports from LiveMint, the rally was supported by positive auto stock performance and a dip in crude oil prices. The market recovery came after both indices fell by approximately 0.7% in the last session on Thursday, amid rising crude oil prices and geopolitical tensions that weighed on overall sentiment. Brent crude, which had skyrocketed to a four-year peak of $126.41 per barrel last week, has since adjusted to about $109 per barrel following U.S. President Donald Trump's comments about maritime navigation in the Strait of Hormuz. Sentiment was also aided by a pullback in crude oil prices after Trump said the U.S. would begin efforts to help free ships stranded in the Gulf.
From April 2 to 21, Nifty 50 rallied by nearly 2,400 points before profit booking set in, leading to an 800-point correction amounting to a 33% retracement. As reported by LiveMint, the index found support near 23,800 and formed a Doji candlestick pattern on the daily chart. However, Nifty 50 has been unable to sustain decisively above its 50 DEMA, currently placed near 24,200. Above this level, a key resistance is seen at 24,600, which also marks the swing high on the daily chart. Given the recent price action, Nifty 50 appears to have entered a consolidation phase between 23,800 and 24,600. Unless this range is decisively broken, stock-specific and sector-specific moves are likely to dominate the market. The index has so far been unable to sustain decisively above its 50 DEMA, currently placed near 24,200.
Vinay Rajani of HDFC Securities has recommended Tata Steel as a buy with a target of ₹229 and stop-loss at ₹204. According to LiveMint, Tata Steel share price has broken out from a 'Flag' pattern on the daily chart and is trading above all important moving averages. The stock is on the verge of breakout from its 52-week and all-time high. Additionally, Linde India is recommended as a buy at ₹7,490 with a target of ₹8,200 and stop-loss at ₹6,900. As reported by LiveMint, Linde India has recently broken out from medium-term consolidation with bullish indicators on weekly and monthly charts. The primary trend of the stock has been bullish, with the price holding above all key moving averages, and indicators and oscillators have been showing strength on the weekly and monthly charts.
In April, Nifty 50 gained 11% while the Microcap250 index surged 23%. According to LiveMint, after such a sharp rise, broader markets may need time to consolidate before the next directional move. The current consolidation phase appears to be between 23,800 and 24,600, with stock-specific and sector-specific moves likely to dominate the market until this range is decisively broken. The rally was supported by positive auto stock performance, with gains in auto stocks such as Maruti Suzuki and Hero MotoCorp following upbeat monthly sales data.
