Stock market today: Trade setup for Nifty 50 to RBI MPC, five stocks to buy or sell on Thursday — June 6
- Stocks to buy today: Experts have recommended buying these five buy or sell stocks — Zydus Wellness, Vijaya Diagnostic, Axis Bank, LT, and Bandhan Bank
Stock market today: The Indian stock market rebounded significantly, erasing the previous day's losses and closing higher. The Nifty 50 index surged by 735 points to close at 22,620, while the BSE Sensex skyrocketed by 1303 points to finish at 74,382. The bank Nifty index also saw a substantial increase, ending 2126 points higher at 49.054. In the broader market, the mid-cap index outperformed the frontline Indian indices, with the advance-decline ratio rising sharply to 3.49:1.
Trade setup for Thursday
For the Nifty, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, suggests that the index has moved above a crucial hurdle and closed higher. He points out that the next crucial hurdles to be watched are around 23,200 levels, and expects the volatility to continue in the short term with immediate support at 22,300 levels.
On the outlook for the Bank Nifty today, Om Mehra, Technical Analyst at SAMCO Securities, said, "Bank Nifty rebound by 4.08%, recovering nearly half of yesterday's fall, and settled at 49,054.60. The index formed a bullish inside bar on the daily timeframe. The index concluded above its 20-day and 50-day moving averages. On the hourly chart, support is indicated at 47,300 levels, while resistance is placed at 49,650, followed by 50,050. A pullback towards the 48,500 zone presents a good buying opportunity for the short-term traders."
Speaking on the triggers driving the Indian stock market, Siddhartha Khemka, Head of Retail Research at Motilal Oswal, said, "Expectation of healthy monsoon is driving buying interest in FMCG and Auto stocks. The narrative around government formation and RBI monetary policy would take centre stage in the near term. Despite the reduced seats, we expect the government focus to continue on Investment-led growth, Capex, Infrastructure creation, Manufacturing, etc in the long term."
"In the near term, we expect the market to remain obsessed with government formation exercise, with a keen eye on key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways. With election overhang done, we expect the focus to revert to fundamental," Khemka added.
Buy or sell stock ideas by experts
On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended five buy or sell stocks for today.
Sumeet Bagadia's stocks to buy today
1] Zydus Wellness: Buy at ₹1895.35, target ₹1999, stop loss ₹1830.
Zydus Wellness share is showing strong bullish momentum, currently trading at a 52-week high of ₹1859.35. The recent breakout above the crucial resistance at ₹1815 levels is a significant technical development supported by robust trading volumes, reinforcing the strength of the stock. This breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
2] Vijaya Diagnostic: Buy at ₹850, target ₹900, stop loss ₹820.
Vijaya Diagnostic daily chart indicates a significant shift in market dynamics, transitioning from slight declines and sideways consolidation to a promising upward movement. The current trading session shows an upward momentum, breaking out of a narrow range pattern on the daily chart. This development aligns with a positive short-term trend, supported by a notable increase in trading volume.
Ganesh Dongre's buy or sell stocks
3] Axis Bank: Buy at ₹1182, target ₹1222, stop loss ₹1162.
We have observed significant support in Axis Bank stock, around ₹1162. At the current juncture, the stock has again seen a reversal price action formation at the ₹1182 price level, which may continue its rally till its next resistance level of ₹1222. This thorough analysis provides a secure basis for traders to buy and hold this stock with a stop loss of 1162 for the target price of ₹1222 in the near term.
4] LT: Buy at ₹3420, target ₹3550, stop loss ₹3370.
In the short term, the stock has seen a bullish reversal pattern. Technically, retrenchment could be possible until ₹3550. So, holding the support level of ₹3370, this stock can bounce toward ₹3550 in the short term. Hence, the trader can use a stop loss of ₹3370 for the target price of ₹3550.
5] Bandhan Bank: Buy at ₹191, target ₹200, stop loss ₹185.
We have seen significant support in this stock, around ₹185. So, at the current juncture, the stock has again seen a reversal price action formation at the ₹191 price level, which may continue its rally till its next resistance level of ₹191. So, traders can buy and hold this stock with a stop loss of ₹185 for the target price of ₹200 in the near term.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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