Stock market today: The domestic benchmark indices, the Nifty 50 and BSE Sensex, traded higher on Wednesday, 6 May, led by gains in banking stocks after the government approved a credit guarantee scheme to support businesses impacted by the Iran conflict.
Investor sentiment was further boosted by positive reactions to key corporate earnings and a decline in oil prices, amid hopes of a potential US–Iran peace deal.
The Nifty 50 rose 0.32% to 24,109 . 85 as of 13:58 IST, while the Sensex advanced 0.18% to 77,155.71.
The rally follows the Union Cabinet’s approval of a $1.9 billion emergency credit guarantee programme, aimed at supporting businesses—particularly small firms—facing short-term liquidity challenges due to the Iran war.
Meanwhile, Brent crude prices eased to around $108 per barrel, down from about $115 earlier in the week, lifting global equities. The decline came after Donald Trump indicated a pause in “Project Freedom”—an operation to escort ships through the Strait of Hormuz—citing “significant progress” toward a broader agreement with Iran.
Market Review and Outlook – Ruchit Jain, Head – Equity Technical Research, Wealth Management, Motilal Oswal Financial Services
The Nifty 50 has consolidated within the range of 23,800-24,300 over the last couple of weeks, which appears to be a time-based corrective phase within an uptrend. The consolidation has been mainly due to the recent rise in crude oil prices and the depreciation of the INR.
However, our markets have shown strong resilience to these factors, and the broader markets have seen strong stock-specific buying interest. Hence, we expect limited downside in the markets. Any positive trigger above 24,300 should then lead to a resumption of the uptrend. Hence, positional traders are advised to look for stock-specific buying opportunities in this consolidation.
Shares to buy or sell in the near-term – Ruchit Jain
On shares to buy or sell in the near-term, Ruchit Jain recommends Granules India Ltd, Nippon Life India Asset Management Ltd, and SRF Ltd.
Buy Granules India at CMP of ₹740; SL at ₹690, and Target of ₹840
The Nifty Pharma Index has broken out of an 18-month consolidation phase. This suggests the sector could rally in the near term. This stock has been an outperformer in the sector recently and has now surpassed its previous high, suggesting the uptrend will continue. The volumes have been increasing along with the price upmove, and the RSI oscillator is hinting at a continuation of the positive momentum.
Buy Nippon Life India Asset Management at CMP of ₹1,080; SL at ₹1,055, and Target of ₹1,150
The stock recently broke out of its consolidation phase with strong volume. Prices have formed a ‘Bullish Flag’ pattern on the daily charts and have given a breakout hinting at a continuation of the uptrend. The @0 DEMA has been seen as a strong near-term support level, and hence, traders are advised to ride this uptrend in the stock.
Buy SRF at CMP of ₹2,700; SL at ₹2,500, and Target of ₹3,050
The stock has recently gone through a corrective phase. It has formed a ‘Doji’ candlestick pattern at its monthly 50 EMA and has shown signs of trend reversal now. Thus, the risk-reward ratio seems favourable at current levels from a positional perspective.
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.
