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Trade Setup for May 6: Nifty bulls aim to build on from highest closing of 2025 amidst Fed meetIt will be a big week for Wall Street as the US Federal Reserve kicks off a two-day policy meeting tommorw, with a decision expected on Wednesday.By Meghna Sen   May 6, 2025, 7:46:36 AM IST (Updated)5 Min ReadRiding on strong global cues, the benchmark Nifty 50 index opened higher and sustained its upward trajectory throughout Monday's trading session. The market ended at its highest closing level of 2025, with the Nifty settling 114 points higher at 24,461.

Big gains were seen in broader markets with the mid and small-cap segments displaying notable outperformance compared to the benchmark indices. The Nifty Midcap 100 Index soared by 1.81%, while the Nifty Smallcap 100 Index ended with gains of 1.02%.

The Nifty Bank index underperformed as SBI and Kotak Mahindra Bank slipped on mixed Q4 results. Multiple analysts tracking Kotak have downgraded the stock. The lender had reported results on Saturday.

Sectorally, Auto, Oil & Gas, and FMCG stocks were the primary drivers of gains, while banking was the only sector to close in the red.

Mahindra & Mahindra Ltd. (M&M) shares rose more than 3% on strong Q4 results led by their tractor segment. Consolidated revenue rose 24.5% from last year to ₹31,353 crore, while net profit went up by 19.6% to ₹2,437 crore. EBITDA rose 39% from last year to ₹4,683 crore. EBITDA margin for the quarter stood at 14.9% from 13.4% last year.

Going ahead, market attention will shift to earnings reports from Bank of Baroda, Paytm, Aadhar Housing Finance, Godrej Consumer Products, Polycab India, Mahanagar Gas, Hindustan Petroleum Corp, and CG Power and Industrial Solutions.

Meanwhile, both domestic and foreign investors were net buyers in the cash market on Monday.

Continued buying by both FIIs and DIIs over the last five trading sessions has been further supporting the market sentiments, said Siddhartha Khemka of Motilal Oswal.

"We expect the market to continue its consolidation with a positive bias, while tracking global cues and developments on the geopolitical front," Khemka added.

It will be a big week for Wall Street as the US Federal Reserve kicks off a two-day policy meeting on Tuesday, with a decision expected on Wednesday. Investors will be tracking the US Fed’s interest rate decision and the following commentary for insights into the US economy post contraction in the Q1 GDP.

Nagaraj Shetti of HDFC Securities said that a sustainable move above the hurdle of 24,500-24,600 levels, the Nifty could move towards the next upside of 24,800-25,000 in the near term. Immediate support is placed at 24,250.

According to LKP Securities' Vatsal Bhuva, the Nifty continues to trade within a narrow range of 24,200 to 25,500, with firm support at the 24,200–24,250 zone and resistance around 24,500–24,550.

"While a decisive breakout above 24,550 could spark bullish momentum towards 25,000, Monday’s small-bodied candlestick suggests that short-term consolidation may persist. The index is holding above its rising 10-day EMA, reflecting a positive near-term trend. With the RSI in a bullish crossover, underlying strength remains intact. The outlook stays bullish as long as Nifty sustains above 24,200, though a strong close above 24,550 is essential for confirmation," Bhuva added.

Here are the stocks to watch ahead of Tuesday's trading session:

Coforge | The company reported a consolidated net profit of ₹261.2 crore for the March quarter, below the CNBC-TV18 poll estimate of ₹285 crore. Rupee revenue also missed expectations, coming in at ₹3,409.9 crore against the projected ₹3,530 crore. However, operational performance was slightly better than expected. Earnings before interest and tax (EBIT) stood at ₹449.4 crore, ahead of the estimated ₹448.3 crore.

IRCON | State-owned engineering and construction firm announced that it has secured a work order worth ₹187.08 crore (excluding GST) from Kerala State IT Infrastructure Ltd (KSITIL) for the construction of a dedicated rural industrial park in Thiruvananthapuram district. The project is structured as a works contract on an item-rate basis and is to be completed within a period of 30 months.

Indian Hotels Company | The company reported a 25% year-on-year rise in net profit to ₹522.3 crore, compared to ₹417.8 crore in the same period last year. Revenue for the quarter rose 27.3% to ₹2,425 crore from ₹1,905.3 crore a year ago. Operationally, the company posted an EBITDA of ₹856.6 crore, marking a 29.8% jump over last year’s ₹659.7 crore. Margins also saw an improvement, with EBITDA margin expanding to 35.3% from 34.6% in the corresponding quarter.

Glenmark Pharma | Pharma major said its innovation arm, Ichnos Glenmark Innovation (IGI), announced that the US Food and Drug Administration (FDA) has granted ‘fast track’ designation to ISB 2001, its investigational therapy for multiple myeloma. The designation is specifically for the treatment of adult patients with relapsed or refractory multiple myeloma (RRMM) who have received at least three prior lines of therapy, including a proteasome inhibitor, an immunomodulatory agent, and an anti-CD38 monoclonal antibody.

DCM Shriram | The company's consolidated net profit rose 51.9% year-on-year to ₹178.9 crore, up from ₹117.8 crore in the same quarter last year. The company saw robust growth across segments, lifting both revenue and margins. Revenue for the March quarter came in at ₹2,876.7 crore, up 19.9% from ₹2,399.3 crore a year ago. Operating performance was equally solid, with EBITDA growing 52.8% to ₹405.3 crore compared to ₹265.3 crore in the year-ago period.

CAMS | Leading registrar and transfer agent for mutual funds reported a 10.1% year-on-year (YoY) increase in net profit at ₹114 crore for Q4FY25, over ₹103.5 crore. Revenue from operations was up 14.7% to ₹356 crore against ₹310.5 crore in the corresponding quarter of the preceding fiscal. At the operating level, the Q4 earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 11.2% to ₹159.3 crore from ₹143.2 crore last year.

Paras Defence | Defence engineering company announced that it has signed a Memorandum of Understanding (MoU) with Israel-based HevenDrones Ltd to explore opportunities in the defence and civil drone markets. As part of the agreement, both companies intend to establish a Joint Venture (JV) in India aimed at developing and manufacturing logistics and cargo drones. The partnership will align with the Government of India’s Make in India initiative and seeks to serve both domestic and global markets.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: May 5, 2025 5:24 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBSE SensexNifty 50share market todayTrade setup