Best stock recommendations today: MarketSmith India’s stock picks for 7 April

Indian stock markets tumbled on Friday, 4 April, amid escalating global trade tensions sparked by a US tariff hike and China’s retaliatory measures, stoking fears of a global recession.

The Sensex and Nifty50 posted steep declines, with sectoral indices such as Nifty Metals, IT, and Automobiles bearing the brunt of the sell-off. In contrast, FMCG, Banking, and Financial stocks outperformed over the week, offering some resilience amid broader market weakness.

Two stock recommendations by MarketSmith India:

Buy: Marico Ltd (current price: ₹677.3)

Why it’s recommended: Established market leadership, consistent and resilient financial performance

Key metrics: P/E: 52.43, 52-week high: ₹ 736.90, volume: ₹ 40.42 Lakh.

Technical analysis: Retesting downward-sloping trendline breakout on the daily chart

Risk factors: Macroeconomic factors, climate change, and environmental risks

Buy at: ₹ 677.3 | Target price: ₹750 in 3 months | Stop loss: ₹640

Buy: Gujarat Ambuja Exports Ltd (current price: ₹ 116.55)

Why it’s recommended: Consistent financial performance, strong balance sheet, and low debt

Key metrics: P/E: 16.44, 52-week high: ₹ 187.10, volume: ₹ 77.51 Lakh.

Technical analysis: Trendline breakout and reclaimed its 50-DMA on above average volume

Risk factors: Exposure to agricultural commodity risks, foreign exchange rate volatility

Buy at: ₹ 116.55 | Target price: ₹135 in 3 months | Stop loss: ₹108

How Nifty 50 performed on 4 April

The Nifty 50 fell 1.49% on Friday, forming a bearish candle on the daily chart. It breached the 50-day moving average (DMA) and the 23,000 mark, ending the session with a negative bias. All sectoral indices, barring FMCG and Financials, closed in the red. The advance-decline ratio stood at a sharp 4:1 in favour of decliners.

For the week, the index shed 2.61%, also forming a bearish candle on the weekly chart. Nifty IT and Metal were the worst performers, while FMCG and Financials offered relative strength.

Technically, the index’s close below the 50-daily moving average (DMA) on the daily chart signals continued weakness. On the weekly chart, it remains sandwiched between the 50- and 100-week moving averages (WMA), with a potential drift toward the 100-WMA in the coming sessions. Momentum indicators remain weak—the relative strength index (RSI) is hovering near 45 and moving average convergence divergence (MACD) continues to trend below the central line on both daily and weekly charts.

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Despite the technical weakness, MarketSmith India has upgraded the market status to a 'Confirmed Uptrend' based on O’Neil’s methodology.

Key levels

Looking ahead, the 22,800–22,700 zone will serve as immediate support. A breach below this range could pull the index toward its recent low of 22,000. On the upside, resistance is expected near 23,500.

How did Nifty Bank perform?

Nifty Bank opened on a positive note on Friday, 4 April, but turned volatile amid mixed global cues. It formed a bearish candle on the daily chart, albeit with a higher-high and higher-low pattern—signaling underlying strength. The index continues to trade above its 200-day moving average (DMA), reinforcing its long-term bullish structure.

For the day, it opened at 51,178.15, hit an intraday high of 51,893.60, a low of 50,742.65, and closed at 51,502.70. On the weekly chart, it ended flat with a marginal loss of 0.12%, forming a Doji candlestick pattern that reflects indecision.

Momentum indicators suggest the uptrend remains intact. The RSI is edging higher near 64, while the MACD holds a positive crossover above its signal line.

Also read | Will lower tariffs lure back FPIs from other emerging markets?

According to O'Neil’s methodology, the broader market remains in a 'Confirmed Uptrend.'

Key levels

As long as Nifty Bank holds above its 200-DMA, investors need not worry. However, a breach of this level could invite further downside toward the 50,500–50,600 zone, which coincides with the 50-week moving average—a key long-term support.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O'Neil India Pvt. Ltd. (Sebi Registered Research Analyst 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 certifiedexperts before making any investment decisions.