Stock recommendations for 23 June from MarketSmith India

Two stock recommendations by MarketSmith India:

Buy: Sansera Engineering Limited (current price: ₹2,991)

• Why it’s recommended: Strong precision engineering capabilities, diversified automotive customer base, growing non-automotive business, strong relationships with global OEMs, beneficiary of premium vehicle growth, expansion in aerospace and defence segments, high-quality manufacturing expertise, strong export opportunities, focus on complex engineered products, consistent capacity expansion, healthy balance sheet, strong return ratios, increasing content per vehicle, long-term growth in engineering sector, and operational efficiency improvements.
• Key metrics: P/E: 54.18, 52-week high: ₹3,037.00, volume: ₹184.21
• Technical analysis: Tight range breakout
• Risk factors: Dependence on auto industry cycle, slowdown in vehicle production, customer concentration risk, raw material price volatility, margin pressure from OEM pricing, export demand fluctuations, competition in precision engineering, execution risk in new segments, working capital management risk, dependence on key customers, supply chain disruptions, aerospace and defence order delays, currency fluctuation impact, economic slowdown affecting demand, and valuation risk during cyclical downturns.
• Buy: ₹2,967–3,012
• Target price: ₹3,500 in two to three months
• Stop loss: ₹2,830

Buy: Anand Rathi Wealth Limited (current price: ₹1,917)

• Why it’s recommended: Strong wealth management franchise, asset-light business model, recurring fee-based revenue, growing HNI and UHNI client base, strong AUM growth trajectory, high-margin business profile, consistent earnings growth, debt-free balance sheet, strong cash flow generation, scalable relationship-manager model, beneficiary of financialization trend, limited capital requirements, strong return ratios (ROE/ROCE), trusted brand in wealth advisory, and long-term structural growth opportunity.
• Key metrics: P/E: 78.04, 52-week high: ₹1,953.60, volume: ₹218.38 crore
• Technical analysis: Flat base pattern breakout
• Risk factors: Dependence on equity market performance, AUM growth linked to market sentiment, competition from large wealth managers, client attrition risk, regulatory changes in wealth management, revenue sensitivity to market downturns, dependence on HNI segment growth, key employee retention risk, margin pressure from competition, slower net inflows during weak markets, concentrated business model, technology and cybersecurity risks, economic slowdown affecting investments, valuation risk after strong re-rating, and earnings volatility in prolonged bear markets.
• Buy at: ₹1,898–1,927
• Target price: ₹2,170 in two to three months
• Stop loss: ₹1,790

Nifty 50 performance on Monday

Indian equity markets ended on a positive note on Monday, with Nifty 50 closing at 24,102.90, up 99.80 points (+0.37%) from the previous close of 24,013.10. The index traded in a range of 24,073–24,168 during the session, witnessing a strong start before paring some gains in late trade. Market breadth remained firmly positive, with 2,149 stocks advancing against 1,206 declining, and 100 stocks remained unchanged, reflecting broad-based buying interest across the market.

Sectorally, Healthcare and Pharma stocks led the gains, with Nifty Pharma (+1.24%) and Nifty Healthcare (+1.05%) emerging as the top performers. Strength was also visible in Oil & Gas (+0.92%), Financial Services Ex-Bank (+0.76%), IT (+0.74%), and Financial Services (+0.65%), indicating support from both defensive and growth-oriented segments. On the other hand, FMCG (-0.41%) and Consumer Durables (-0.55%) underperformed, reflecting selective profit-taking in consumption-linked counters.

From a price-action perspective, the index continues to form a sequence of higher lows from the June bottom, indicating improving short-term momentum. However, the session concluded with a small-bodied candle after testing higher intraday levels, suggesting some profit-booking emerged near the upper end of the recent trading range. Momentum indicators remain supportive. The RSI is positioned at 59.65, comfortably above the neutral 50 mark and trending higher, highlighting strengthening bullish momentum without entering overbought territory. Meanwhile, the MACD remains in positive territory with the MACD line above the signal line, and rising histogram bars, which point to improving upside momentum and confirm the recent price strength.

The index encountered resistance near its 100-DMA but closed above the psychologically significant 24,000 mark, indicating resilience despite intraday selling pressure. The index continues to exhibit a constructive bias, and a decisive breakout followed by a sustained close above 24,000–24,100 would strengthen the bullish outlook and confirm the ongoing recovery trend. Such a move could pave the way for a further advance toward 24,350–24,600 in the near term. On the downside, 23,800–23,650 remains a crucial support band, with its ability to hold likely determining the sustainability of the current positive momentum.

How did Nifty Bank perform?

Nifty Bank opened on a positive note at 57,906.90, touched an intraday high of 58,009.10, slipped to a low of 57,720.10, and finally closed higher at 57,935.60, gaining 249.85 points or 0.43%. The day’s price action indicates that the index absorbed mild intraday selling and rebounded after testing lower levels, reflecting sustained buying interest near supports. Price remains comfortably above the 200 DMA at 57,063.94, which is technically constructive. The recent structure shows a bullish continuation after reclaiming key moving averages, with the index now attempting to consolidate above the breakout zone. The pattern resembles a steady, rounded recovery from April lows, supported by improving breadth and follow-through buying.

RSI is at 69.14, above its average of 59.69, indicating strong momentum and suggesting the index is approaching the overbought zone. This supports the view that trend strength remains positive, though short-term cooling or consolidation cannot be ruled out. MACD is firmly positive, with the MACD line above the signal line and the histogram expanding in bullish territory, confirming trend acceleration. There is no visible bearish divergence on the daily chart. The index trading above the 10-, 21-, 50-,, 100-, and 200-DMA reinforces the improving medium-term structure.

Immediate resistance is placed near 58,000–58,200, followed by 59,000 and then the psychological 60,000 zone. On the downside, support is seen near 57,720, followed by the 200 DMA at 57,063.94 and the 10 SMA at 56,795.25. A sustained close above 58,200 could extend the rally toward 59,000–60,000 over the coming sessions. However, given RSI’s elevated reading, minor profit booking near resistance would be normal. Recent market cues remain supportive for financials, with banking and financial stocks benefiting from RBI-linked liquidity and deposit-related measures. On the other hand, broader Indian equities have also traded firm despite geopolitical risks.

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.

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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.