Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, has identified Yatharth Hospital & Trauma Care Services Ltd and Gujarat Ambuja Exports Ltd as the top stock recommendations for the week commencing May 4, 2026. He also provides his outlook on the key benchmarks Nifty and Bank Nifty.
Nifty View
The benchmark index Nifty ended April on a strong note, posting gains of over 7% and breaking its four-month losing streak. After touching a low of 22,182 on April 2, the index staged a sharp recovery of more than 2,400 points within just 11 trading sessions. This rally was largely supported by improved global risk sentiment following easing geopolitical tensions, which triggered broad-based short covering. However, the key question remains whether this move reflects the formation of a sustainable base or merely a temporary rebound.
After hitting a high of 24,601 on April 21, the index witnessed profit booking at higher levels. Over the past six trading sessions, Nifty has been consolidating within a narrow band of 24,335–23,798, indicating a phase of indecision. This consolidation can be attributed to multiple factors, including rising crude oil prices, uncertainty around geopolitical developments, upcoming election outcomes, and continued weakness in the currency. With these mixed signals, the market appears to be awaiting a clear directional trigger.
Going forward, volatility is expected to remain elevated. The 24,300–24,350 zone will act as an immediate resistance, and a sustained breakout above 24,350 could pave the way for a rally towards 24,500 and 24,700. On the downside, the 23,800–23,750 range will serve as a key support area. A decisive break below 23,750 may open the door for further downside towards 23,600 and 23,400, making this zone critical in determining the next trend.
Bank Nifty View
The banking benchmark index Bank Nifty concluded April on a strong note, registering gains of 9.13%. It recorded a high of 57,456 on April 21, following which the index witnessed a sharp correction of nearly 2,600 points within just six trading sessions. This price action led to the formation of a bullish candle on the monthly chart, marked by a long upper shadow and a relatively small lower shadow, indicating selling pressure emerging at higher levels.
In the recent six trading sessions, the index has underperformed the frontline indices and continues to trade below its key moving averages, which are all trending downwards. This reflects a weakening trend structure. Additionally, the daily RSI is positioned at 45.54 and remains below its 9-day average, suggesting subdued momentum and absence of near-term bullish strength.
From a technical perspective, the 54,500–54,400 zone will act as a critical support area, as it coincides with a prior swing low. A sustained breakdown below 54,400 could intensify selling pressure and push the index lower towards the 53,500 mark, making this level crucial for monitoring downside risk. On the upside, the 20-day EMA zone of 55,500–55,600 is expected to act as an immediate resistance. A sustained move above 55,600 may trigger a pullback rally, potentially driving the index towards the 50-day EMA, currently placed at 56,176. A decisive close above this level could further support a recovery in the index.
Stock Recommendations
Yatharth Hospital & Trauma Care Services Ltd
Yatharth Hospital & Trauma Care Services Ltd has delivered a decisive breakout on both the daily and weekly charts, reinforcing a strong bullish setup. On the daily timeframe, the stock continues to form a clear higher high–higher low structure while trading comfortably above key short and long-term moving averages, highlighting trend strength. The RSI has rebounded after a brief dip below 60, signalling sustained bullish momentum, while a rising ADX underscores strengthening trend intensity. Overall, the setup suggests continued upside potential in the near term. Hence, we recommend accumulating the stock in the zone of 820–810 with a stoploss of 785. On the upside, it is likely to test the level of 880 in the short term.
Gujarat Ambuja Exports Ltd
Gujarat Ambuja Exports Ltd has been consolidating within the 146–160 range since April 9, indicating a healthy pause after its prior move. Notably, the 146 level, once a resistance, has now turned into a strong support, aligning with the 20-day EMA, which is acting as a dynamic support, reinforcing a positive undertone. Despite the sideways action, the stock continues to hold above this key moving average, reflecting underlying strength. The DI+ crossover above DI− and RSI reclaiming 60 signal improving momentum, suggesting the stock is gearing up for a potential upside breakout. Hence, we recommend accumulating the stock in the zone of 156–154 with a stoploss of 148. On the upside, it is likely to test the level of 166 in the short term.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
