Indian equity markets ended in negative territory on Tuesday, with the Sensex closing 252 points lower at 77,017.79 and the Nifty 50 falling 87 points to 24,032.80. According to reports from Mint, the decline was largely attributed to profit booking in banking and financial heavyweights. Despite the market weakness, the Nifty managed to hold above the psychologically important 24,000 mark, with the Sensex recovering nearly 500 points from its intraday low. Market breadth remained weak with 1,890 shares advancing, 2,110 declining, and 169 unchanged.
Market expert Raja Venkatraman from NeoTrader has recommended three stocks for trading on May 6. As reported by Mint, the recommendations include ABCAPITAL (CMP ₹360.85) with a buy above ₹363, stop loss at ₹340, and target of ₹405 for a multiday trade. The second pick is AUROPHARMA (CMP ₹1428.10) with buy above ₹1430, stop at ₹1390, and target of ₹1550 for a multiday trade. The final recommendation is FINCABLES (CMP ₹1054.95) with buy above ₹1060, stop at ₹1020, and target of ₹1150 for a multiday trade. According to the technical analysis provided by Venkatraman, these stocks show promising technical patterns and support levels.
Despite market weakness, institutional investors showed positive sentiment. As reported by Mint, Foreign Institutional Investors turned net buyers after nine consecutive sessions of selling, infusing ₹2,836 crore. Domestic Institutional Investors continued their buying streak for the seventh day, adding ₹4,764 crore. The sectoral performance showed mixed results, with the Nifty Auto index posting marginal gains of 0.2%, while the Realty index was the worst performer, shedding over 1%, dragged down by Godrej Properties.
According to Venkatraman's analysis reported by Mint, the market sentiment is attempting a steady upward drift despite mixed Q4 earnings season challenges. The technical indicators suggest that momentum on hourly charts are indicating withdrawal of selling pressure with gradual rise emerging from support levels. The RSI is holding in the neutral zone, influencing potential recovery, while the Open Interest data shows PCR moving to 1, highlighting that trends are at an important stage. For short positions, Venkatraman recommends waiting for Nifty to move below 24,000 decisively, with resistance remaining at 24,500.
