Best stock recommendations today: MarketSmith India’s top picks for 9 May

This triggered risk aversion among investors, weakening the rupee and pushing bond yields higher. The volatility index (India VIX) surged more than 10%, reflecting growing market uncertainty. Profit booking in banking, financials, energy, auto, pharma, and metal stocks contributed to the decline.

Adding to the pressure, hawkish comments from the US Federal Reserve on rising inflation and unemployment risks further unsettled investors.

Read this | Q4 earnings watch: Demand slowdown puts FMCG’s ‘fast-moving’ promise to test

Two stock recommendations by MarketSmith India for 9 May:

● Why it’s recommended: Focused niche in affordable housing finance, strong asset quality, and conservative lending

● Key metrics: P/E: 21.30, 52-week high: ₹ 402, volume: ₹36.97crore

● Technical analysis: Bounced back from its 200-DMA

● Risk factors: Competitive pressure in affordable housing finance and geographical concentration risk

● Buy at: ₹ 325

● Target price: ₹ 360 in three months

● Stop loss: ₹ 310

Buy: ITC Ltd (current price: ₹ 430)

● Why it’s recommended: Strong financial performance, growth prospects, market position, and operational efficiency

● Key metrics: P/E: 26.69, 52-week high: ₹ 495, volume: ₹ 855.30 crore

● Technical analysis: Bounced back from its 100-DMA

● Risk factors: Overvaluation concerns, high ESG risk rating

● Buy at: ₹ 430

● Target price: ₹ 460 in three months

●Stop loss: ₹ 421

Read this | What should investors expect from the ITC Hotels demerger?

How the Nifty 50 performed on 8 May

The Nifty 50 opened on a flat note but failed to sustain above the key support level of 24,400, spending most of the session in negative territory. Volatility intensified in the second half, leading to a bearish candle formation on the daily chart. All major sectoral and broader market indices ended in the red, with market breadth weak at a 1:3 advance-decline ratio.

Technically, the index remains above all key moving averages on the daily chart, maintaining a broadly bullish undertone. However, recent price action suggests a sideways consolidation within the 24,000–24,500 range. The Relative Strength Index (RSI) has started to decline and is now hovering around 57–58, indicating waning momentum. The Moving Average Convergence Divergence (MACD) has also witnessed a negative crossover, though it remains above the zero line, reflecting a neutral-to-cautious short-term outlook.

According to O’Neil’s market direction methodology, Nifty50 has shifted from a “Rally Attempt” to a “Confirmed Uptrend.”

Nifty 50’s failure to hold above 24,400 underscores a negative bias. The price and momentum structure on the daily chart continues to indicate consolidation within the 24,500–23,900 range. A breakout or breakdown beyond this zone could set the next directional move. Immediate support lies at 23,900, with a stronger support zone near 23,700.

How did Bank Nifty perform?

On Thursday, Bank Nifty opened on a positive note but traded erratically amid geopolitical tensions, ending 0.45% lower. Despite forming a bearish candle on the daily chart, it managed to hold above Wednesday’s low, closing at 54,365 after oscillating between 54,937 and 54,108. FinNifty mirrored the weakness, shedding 0.71% to close in the red.

Technically, Bank Nifty remains above its key moving averages, indicating underlying strength in the broader trend. However, the recent consolidation phase suggests fading momentum, with the RSI slipping to 56 and the MACD showing a negative crossover—both signs of waning bullish sentiment in the short term.

According to O’Neil’s methodology, Bank Nifty has shifted from an “Uptrend Under Pressure” to a “Confirmed Uptrend.”

Also read | Top 5 fundamentally strong penny stocks to watch out for in 2025

The index continues to consolidate within the 53,500–55,000 range, with immediate support at 53,500. A decisive move beyond this range could set the next directional cue for the index.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

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.