Global markets experienced a significant rally with Asia-Pacific shares outside Japan jumping 3.2%, while Samsung Electronics surged 14% to top a $1 trillion market value and overtake Berkshire Hathaway. In the United States, Advanced Micro Devices jumped around 18.6% as the company forecast second-quarter revenue above Wall Street expectations, helping drive AI enthusiasm across markets. Intel also rose to a record high, while chip designer Arm Holdings and chipmaker Qualcomm similarly surged. Despite this global momentum, volatility in energy and bond markets could weigh on global growth, with oil prices around 35% higher than when the conflict began in late February.
Equity benchmarks bounced back sharply with a 1.2 percent rally on May 6 after a day of minor correction, supported by healthy market breadth. According to reports from LKP Securities, about 2,230 shares advanced against 737 declining shares on the NSE. Follow-up buying is necessary for a further upmove in the market toward long-term moving averages. Below are some short-term trading ideas to consider for May 7.
LIC Housing Finance has given a flag pattern breakout on the daily chart, suggesting improving optimism. As reported by LKP Securities, buying interest appears to have increased as the price sustains above the critical moving average. The RSI is in a bullish crossover and remains in a high-growth zone. A strong upmove is expected, with the potential to rise toward ₹630 in the short term. On the downside, support is placed at ₹567. Strategy: Buy, Target: ₹630, Stop-Loss: ₹567.
On the daily chart, Crompton Greaves Consumer Electricals has given a consolidation breakout, suggesting rising optimism. According to LKP Securities, it has moved above the 200 DMA, confirming an improvement in the long-term trend. The RSI has also moved into the high-growth zone, indicating very strong momentum. On the upside, the stock may move toward ₹300, while immediate support is placed at ₹273. A fall below this level could weaken sentiment again.
Motilal Oswal Financial Services has identified strong opportunities in AI-linked sectors including BSE Ltd. with a ₹4,400 target as cash market share gains and NSE's expected listing could support growth. The brokerage maintains a buy call on Lenskart with a ₹600 target, highlighting strong opportunities in AI-linked sectors such as power, cables and data centres. Additionally, UltraTech Cement Ltd., JK Cement Ltd. and Dalmia Bharat Ltd. are named as preferred cement picks, with the cement sector benefiting from AI infrastructure demand.
Belrise Industries has given a strong flag-and-pole breakout on the daily chart with healthy surge in volumes, reinforcing the strength of the move. According to SBI Securities, accumulation is recommended in the zone of ₹223–220 with a stop-loss of ₹212, targeting ₹245 in the short term. Samvardhana Motherson International has staged a strong pullback from its 100-day EMA, with accumulation recommended in the zone of ₹128–126 targeting ₹138. Great Eastern Shipping Company has delivered a strong horizontal trendline breakout, with accumulation recommended in the zone of ₹1,580–1,560 targeting ₹1,690.
