Trade Setup | Things To Know Before Market Opening - 06 Jun 2023 Tuesday

Day trading guide for today: Following strong global market sentiments, Indian stocks ended higher for second straight session. However, key benchmark indices remained range-bound as investors were cautious ahead of the three days Reserve Bank of India or RBI MPC meeting (Monetary Policy Committee meeting), which is going to begin today. 50-stock index Nifty ended 59 points higher at 18,593 while 30-stock index BSE Sensex finished 240 points up at 62,787 levels. Bank Nifty index gained 1163 points and closed at 44,101 mark. In broad market, mid-cap index gained 0.29 per cent whereas small-cap index surged 0.51 per cent on Monday.

On outlook for Nifty today, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "The short-term trend of Nifty continues to be positive with range bound action. The present consolidation movement is expected to continue within a high low range of 18,700-18,500 levels in the next 1-2 sessions. A decisive move above 18,700-18,800 is expected to bring more upside for the near term."

"Auto and financials are likely to be in focus ahead of the RBI policy meeting this week and are expected to remain in momentum," said Siddhartha Khemka, Head - Retail Research at Motilal Oswal.

In corporate action, stock market investors and traders would be eagerly waiting for the board meeting of Prime Securities would be in focus as these stocks are going to trade ex-dividend today.

On suggestion to stock market investors as RBI MPC meeting begins today, Sandeep Pandey, Former Deputy Vice President at Nifty, small-cap and mid-cap index."

Sandeep Pandey said that RBI is expected to maintain status quo on interest rate and high interest rate regime may last for long. He advised long term investors to look at manufacturing and IT sector stocks as they are available at discounted price and next leg of rally is expected from these segments.

On intraday stocks for today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Anuj Gupta, Vice President — Research at IIFL Securities and Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi — recommended six stocks to buy today.

1] IndusInd Bank: Buy INDUSINDBK @ ₹1301.80 SL ₹1270 TGT ₹1355.

Currently, IndusInd Bank share price is trading around ₹1301 levels. The stock is continuously forming higher high higher low formation on weekly charts. The stock has a strong support near ₹1275 levels. Currently stock is trading above all important moving averages. The important support of ₹1275 was prior a resistance and stock sustaining above ₹1275 levels indicates strength. Based on the above analysis we anticipate stock to move higher towards next resistance around ₹1355 and above.

2] Dabur India: Dabur share price has witnessed strong buying interest from its prior support zone. The stock is following Higher High- Higher Low formation in daily chart. Moreover golden crossover ie, 50 DMA is crossing 200 DMA is seen in the chart confirms the bullish trend. As indicators like RSI and MACD are positively skewed, it validates the price action. One can initiate long position at CMP ₹547.1 the target price of ₹565. SL can be kept as ₹535.

3] Sun Pharma: Buy at CMP, target ₹1055, stop loss ₹974.

Sun Pharma share price has given strong technical breakout on chart pattern and the stock has formed bullish pattern as well. Trade volume of the pharma stock has also surged that ensures upside movement in near term.

4] Tata Steel: Buy at CMP, target ₹114, stop loss ₹107.

Steel demand is expected to increase that may benefit this Tata group company in improving margins in upcoming quarter. Apart from this, the stock has given strong technical breakout on chart pattern.

5] Balkrishna Industries: Buy at ₹2280, target ₹2330, stop loss ₹2245.

This stock has a short-term reversal pattern from the ₹2250 to ₹2260 level, and RSI is also turning up. So, a short-term bounce is possible till ₹2330 in a week.

6] Bata India: Buy at ₹1577, target ₹1630, stop loss ₹1540.

Bata India share price is still showing strength on the daily chart pattern holding the support level of ₹1540 could drag the stock toward the ₹1650 level in the short term, so one can go long with a stop loss of ₹1540 for the target price of ₹1630.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of PickStock. We advise investors to check with certified experts before taking any investment decisions.