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On 2 May, the Indian equity markets opened on a slightly gap-up note, but soon slipped into negative territory, witnessing a sharp V-shape fall in the 1st half of the session. However, the indices bounced back in the latter half, supported by select heavyweight buying, and managed to close the day with slight gains.

Why it’s recommended: The stock has given a good breakout and was able to close above the important level of ₹1,260. Also, on the hourly chart, the stock has given a bullish pennant breakout with RSI showing bullish momentum.

Key metrics: Breakout level: ₹1,260 | Pattern: Bullish pennant breakout (hourly chart) | RSI: Bullish momentum

Technical analysis: Price action confirms a breakout with strength above key levels. RSI supports the potential for further upside.

Risk factors: The ports sector is sensitive to global trade cycles, government regulations, and freight rate volatility.

Buy at: ₹1,267 | Target price: ₹1,285– ₹1,295 in 1–3 days | Stop loss: ₹1,255

Why it’s recommended: On the daily chart, considering the recent high of ₹1,609 and recent low of ₹1,115, the stock has closed above the 61.80% Fibonacci retracement level, which is a strong bullish signal. Additionally, on the lower timeframe, a bullish pennant breakout is visible, indicating a potential start of a strong upward move.

Key metrics: Fibonacci level: 61.80% ( ₹1408) | Pattern: Bullish pennant breakout (lower timeframe)

Technical analysis: Closing above the key Fibonacci level confirms strength. The pennant breakout on the lower timeframe adds momentum to the bullish case.

Risk factors: Reliance is a diversified stock and can be impacted by oil prices, telecom sector volatility, and regulatory decisions.

Buy at: ₹1,422 | Target price: ₹1,445– ₹1,465 in 1–3 days | Stop loss: ₹1,408

Why it’s recommended: The stock has closed above ₹2,900, which was a recent resistance level. On the lower timeframe, the stock has given a bullish pennant breakout above the ₹2,925 level, indicating the potential for a clean uptrend ahead.

Key metrics: Breakout level: ₹2,925 | Pattern: Bullish pennant breakout (lower timeframe) | Resistance turned support: ₹2,900

Technical analysis: The price closing above key resistance with bullish breakout on lower timeframe signals strength and possible continuation of the uptrend.

Risk factors: Auto ancillary stocks like TIINDIA can be affected by raw material price volatility, auto sector demand, and broader economic trends.

Buy at: ₹2,908 | Target price: ₹2,950– ₹2,970 in 1–3 days | Stop loss: ₹2,874

The Nifty 50 ended the session marginally up, rising 12.50 points or 0.05% to settle at 24,336.70. The BSE Sensex also closed in the green, up by 259.75 points (0.32%) to end at 80,501.99, recovering strongly from intraday lows.

The Nifty Bank, after showing initial strength, remained volatile and finally closed 28.20 points lower (-0.05%) at 55,115.35, signaling a mixed tone in the banking space.

The broader market action remained range-bound for most of the day, with selective buying in defensives and infra.

PSU Banks led the gains with a 0.19% jump, supported by improved sentiment and global cues. The finance sector added 0.15%, while the infrastructure sector gained 0.10%, showing steady accumulation in capital-focused themes.

On the losing side, metal stocks declined by 0.74%, erasing earlier intraday gains. The pharma sector dropped 0.67% on profit booking. Meanwhile, healthcare stocks slipped 0.61%, dragged by global headwinds and weak outlook in demand.

Among notable performers, Adani Ports surged 4.16% after posting better-than-expected earnings. Bajaj Finance gained 2.64% on strong business momentum. IndusInd Bank rose 1.74% driven by buying interest in private sector banks.

On the downside, JSW Steel tumbled 5.50% following a weaker quarterly report. Bajaj Auto declined 2.41% amid cautious guidance. Eicher Motors also fell 2.35%, giving up recent gains on profit booking.

If we closely see the chart of Nifty on the daily timeframe, we just entered into the supply zone 24,530–24,777 and got a rejection candle. In the earlier report, 24,550 was our target and it has just been touched. We are now seeing selling pressure coming in.

Still, the trend is up, but we may see a pause at the current level. Once we cross 24,800, we will see a clear trend continuation in the index.

RSI is at 65 and MACD is on the positive side, again confirming the bullish trend.

Till we close below 24,200, the trend remains up.

On the hourly chart, we have closed below the 20-HMA (24,350) and above the 40-HEMA (24,258), showing a bearish to sideways trend. Also, RSI is downsloping below 50, and MACD has given a negative crossover, indicating a short-term bearish trend.

Still, buy on dips is advisable.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.