Buy or sell stocks: Indian equity markets stayed under pressure on Friday, May 8, amid rising geopolitical concerns after reports of Iran-US clashes near the Strait of Hormuz dampened investor sentiment, pulling both benchmark indices down by over 0.50%.
The fell 0.55% to close at 24,193, while the Sensex declined 0.67% to end at 77,321. Despite heightened intraday volatility, both benchmarks recorded weekly gains of more than 0.70%. The broader market showed a mixed trend, with the Nifty Smallcap 100 rising 0.22%, while the Nifty Midcap 100 slipped 0.15%.
On Friday, the opened with a gap-down at 24,233.65 and witnessed weakness throughout the session. The index recorded its intraday high of 24,253.00 in the first half, while selling pressure intensified in the latter half, dragging the index to an intraday low of 24,126.65. The index eventually closed at 24,176.15, registering a decline of 150.50 points or 0.62% over the previous close.
According to Sumeet Bagadia, Executive Director at Choice Broking, on the daily timeframe, the formation of a bearish candlestick pattern indicates sustained selling pressure and moderation in bullish momentum.
“From a technical perspective, immediate support is placed in the 24,000–24,080 range, while resistance is observed between 24,330 and 24,400 levels. The Relative Strength Index (RSI) stands at 52.40, remaining above the midpoint of 50 but indicating weakening momentum. In the derivatives segment, notable call writing was seen at the 24,200 strike, followed by 24,300, while significant put writing was observed at 24,200 and 24,000 levels, indicating a defined trading range for the near term,” Bagadia said.
Bank Nifty
The Bank Nifty index opened with a gap-down at 55,783.95 and faced selling pressure right from the opening minutes of the session. The index recorded its intraday high of 55,797.70 near the opening level and continued to decline throughout the day, marking an intraday low of 55,062.50 in the second half. The index eventually closed at 55,310.55, registering a decline of 736.85 points or 1.31% for the day.
Bagadia noted that on the daily timeframe, the formation of a bearish candlestick pattern with the intraday high near the opening level indicates persistent selling pressure throughout the session.
“From a technical standpoint, immediate support is placed in the 54,800–55,000 range, while resistance is seen in the 55,800–56,000 zone. The Relative Strength Index (RSI) stands at 48.56, slipping below the midpoint level of 50 and indicating weakening momentum with a bearish bias. Sustaining above support levels will be important to avoid further downside pressure,” he said.
Bagadia further recommended traders to remain selective and wait for stability near support zones or a decisive breakout above resistance levels before initiating fresh positions, as recent price action suggests a weak trading session with both indices witnessing sustained selling pressure throughout the day.
Sumeet Bagadia’s stocks to buy
Amid ongoing tensions in the US-Iran war uncertainty, Sumeet Bagadia recommends five to buy on Monday, 11 May: Asian Paints, Kaynes Technology India, Tata Consumer Products, VST Industries, and Radico Khaitan.
1] Asian Paints: Buy at ₹2599.90, Target ₹2800, Stop Loss ₹2490
Asian Paints: share price is showing renewed bullish strength after surpassing its previous swing high and sustaining above the breakout level, indicating strong trend continuation. The stock recently witnessed a healthy rebound from the 50-day EMA support zone, highlighting steady accumulation and positive price structure. Momentum indicators remain favorable, with RSI at 68.97 trending higher above the midpoint, reflecting sustained buying momentum. Based on the current technical setup, traders may consider buying at CMP with a strict stop loss of ₹2490 for a potential upside target of ₹2800, while maintaining disciplined risk management.
2] Kaynes Technology India: Buy at ₹4507.50, Target ₹4900, Stop Loss ₹4300
Kaynes Technology India share price is trading around ₹4507.50 and witnessing steady buying interest after successfully retesting its recent swing breakout zone, which is aligned with the rising 50-day EMA support. The stock has further strengthened its trend by breaking out of a horizontal consolidation range and continuing its higher high formation, highlighting sustained upward momentum. Considering the positive price structure and improving trend strength, short-term traders may consider buying at CMP with a stop loss of ₹4300 for a potential target of ₹4900, while following proper risk management.
3] Tata Consumer Products: Buy at ₹1176.20, Target ₹1275, Stop Loss ₹1125
Tata Consumer Products share price is witnessing positive momentum after breaking out of a short-term sideways consolidation range, indicating fresh accumulation and renewed buying interest. On the daily chart, the stock has formed a bullish golden crossover, highlighting strengthening trend momentum. It has also rebounded from the 20-day EMA support zone, reflecting sustained strength at lower levels. RSI stands at 62.97 and remains above the midpoint, suggesting momentum is firmly in favor of the bulls. Considering the improving technical setup, traders may look for upside potential towards ₹1275 while keeping ₹1125 as a strict stop loss.
4] VST Industries: Buy at ₹264.40, Target ₹285, Stop Loss ₹252
VST Industries share price is showing improving strength after delivering a range breakout and sustaining above the breakout zone, indicating fresh buying momentum. On the downside, strong support is placed near ₹255, aligned with the 200-day EMA, which continues to act as a key demand zone. The stock had earlier witnessed a sharp upside move accompanied by a strong rise in RSI, reflecting strengthening momentum and bullish sentiment. Considering the favorable technical structure, traders may consider buying at CMP ₹264.40 with a stop loss of ₹252 for a potential target of ₹285, while maintaining disciplined risk management.
5] Radico Khaitan: Buy at ₹3477.20, Target ₹3800, Stop Loss ₹3320
Radico Khaitan share price has recently delivered a rounding bottom breakout on the daily timeframe, indicating a potential continuation of the bullish trend. Currently trading around ₹3477.20, the stock has witnessed a strong bounce from support near the previous swing low, aligned with an ascending trendline support zone, reflecting sustained buying interest. Rising volumes further highlight improving participation and strengthening momentum in the stock.
Based on the strengthening technical structure and improving momentum, traders may look for buying opportunities at CMP ₹3477.20, with ₹3320 acting as a crucial support-based stop loss, while ₹3800 remains the potential upside target, subject to disciplined risk management.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.