Intraday Stocks To Buy Today, May 7: Top Picks By Sumeet Bagadia For Profitable Trading On Wednesday

The Nifty dropped 0.33 percent to close the previous session at 24,379.60, while the daily RSI stayed constant at 65, indicating neutral momentum. Nifty Bank formed a bearish candle on the daily chart and completed the day at 54,271.40, down 1.18 percent.The India VIX surged 3.60 percent and ended the day at 19, indicating heightened market concern. Following the start of Operation Sindoor in the early hours of Wednesday, May 7, which involved targeted strikes on nine terror sites in Pakistan, geopolitical tensions between India and Pakistan are still weighing on the market sentiment.

Nifty Outlook Today

"The index formed a bearish engulfing pattern on the daily chart, signaling a pause or short-term reversal in the uptrend. However, Nifty still holds above all the key moving averages, keeping the broader trend intact. Yet, if it falls below 24,240, the 9 EMA may no longer act as support and could turn into a barrier for any recovery attempt. The daily RSI remains steady around 65, showing neutral momentum. On the hourly chart, Nifty has broken a trendline connecting recent swing lows, hinting at a possible loss of intraday strength. The support is now seen near 24,200, which also aligns with the hourly Supertrend," commented Om Mehra, Technical Research Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"The index slipped below its 9 EMA, and the previous swing low of 54,175 has also been breached, making the support zone appear vulnerable. The recent correction can be attributed to mean reversion, as the index faced resistance near the upper Bollinger Band on the daily chart. Nifty Bank has also moved below the 23.6 percent Fibonacci retracement level, placed at 54,460. The next crucial support lies near the 38.2 percent retracement level, around 53,400, which also coincides with the 20-Day simple moving average and adds strength to this zone. The daily MACD setup is now tilting to the downside, with the fast line crossing below the slow line, suggesting weakening momentum. However, the primary trend remains bullish. The current decline appears to be a normal correction rather than a shift in the overall trend," Om Mehra stated.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Wednesday, 7th May ahead of the U.S. Federal Reserve's policy decision.

CEAT

Buy CEATLTD in cash @ Rs 3575, Stop-loss @ 3425, Target @ 3800

CEATLTD has delivered an impressive up move, currently trading at an all-time high of 3627.9 levels. This surge in the stock continue to deliver a strong bullish momentum supported by steadily rising volumes and improving technical structure. The recent breakout above the crucial resistance at 3500 levels is a significant technical development. The stock closing near the day's high and the breakthrough suggests above the psychologically important ₹3500 mark, suggests the continuation of this momentum.

Additionally, CEATLTD is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 80 levels.

For traders, keeping an eye on the strong support near 3500 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, CEATLTD current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying CEATLTD and the CMP of 3575 with a stop loss of 3425 for the target of 3800.

Chambal Fertilisers and Chemicals

Buy CHAMBLFERT in cash @ Rs 726.65, Stop-loss: Rs 700, Target: Rs 777

CHAMBLFERT surged by a remarkable 5.18% in Tuesday trade. The rally was backed by strong volumes and a sharp bullish candle, suggesting aggressive accumulation at lower levels. The counter has been on a strong uptrend since early March, marking a decisive breakout from a prolonged consolidation phase. A large bullish candle with strong range expansion underscores renewed investor confidence and robust momentum in the stock

Adding to the positive momentum, Importantly, this move came after a brief pullback near the 20-day EMA, which held strong support near ₹670 , and acted as a springboard for the current rally. Furthermore, CHAMBLFERT is currently trading above its crucial 20-day, 50-day, and 100-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. Given the overall chart pattern, the analysis suggests a favourable long trading opportunity for investors.

Based on the above analysis we recommend buying CHAMBLFERT in cash at CMP of 726.65 for the target of 777 with a stop loss of 700.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.