This week on the stock market, the main benchmark prices went up on June 2 after going down for two days. The US government passed the US debt cap law, which stopped the country from going bankrupt. This made the market feel better.
On June 2, the Sensex ended the day at 62,547.11, which was up 119 points, or 0.19 percent. The Nifty ended the day at 18,534.10, which was up 46 points, or 0.25 percent. The BSE Midcap index, on the other hand, reached its all-time high of 27,322.22 during the trading day and ended 0.60 percent higher at 27,294.10. During the trading day, the Smallcap index hit its 52-week high of 30,969.95 and ended up 0.57 percent higher at 30,885.70.
Now that the RBI monetary policy pronouncement has been made, investors will be waiting to see if foreign investors will continue to pour money into Indian markets next week.
“Markets have been doing better than most of their global peers in the past few weeks. However, if the trend keeps getting worse, especially in the US markets, the mood might change. At the same time, the banking pack’s lack of decisiveness near its record high is hurting the mood, and its performance will be very important in the coming week. Even so, we stick to our positive view and suggest putting your attention on areas and stocks that are doing well. On the index front, Ajit Mishra, SVP of Technical Research at Religare Broking, said, “We expect Nifty to hold between 18,100 and 18,300 if it falls, and a decisive close above 18,700 would open the door to a new high.”
Sumeet Bagadia, the Executive Director of Choice Broking, thinks that Bajaj Finserv, Dr. Reddy’s, and SBI are three stocks to buy on June 5.
Bajaj FinServ is currently trading at 1457 and has put on an impressive performance. Notably, the stock has gone above all of its 20, 50, 100, and 200 exponential moving averages (EMAs), which are short-, medium-, and long-term trends. It has also broken out above the important level of 1440, which shows that the stock can stay at this level for a week.
Also, the Relative Strength Index (RSI) has stayed above 67 and is still going up, which shows that the market is doing well for Bajaj FinServ.
Based on our research, we expect the stock to go up, with a possible range of 1515–1540 as a possible target. But it’s important to remember that our strong view would be wrong if the stock fell below $1415.
The stock has turned around from its base after a good period of stability, and the Pharma Index keeps going up with a positive bias every day. The price of the stock is above the 20-day and 50-day moving averages. The price is also moving above the Bollinger band Also, a positive crossover in RSI and MACD shows that the bullish trend will keep going in the short term. Short-term buyers are likely to buy if the volume stays high for a long time.
So, based on the technical structure described above, one can start a long position at CMP 4610. But if the market closes and stays above 4645, it will move towards 4770 in the coming days. The SL can stay at 4520.
The 580 mark is a strong support for SBI. At the moment, the stock is worth about 587.20. Near the 590 mark, the charts show a smaller resistance. The stock will be able to advance towards the target price of 605 and higher after it has cleared the earlier barrier. The stock is trading above all important moving averages, and the RSI is easily trading at 58, which shows strength. The Bollinger band has shrunk, and the price is above the middle band. This means that the price can go up even more.
Based on the research above, we think you should buy SBI at the CMP price of 587.20. It can also be bought near 580 with a medium-term goal of 605. If the price ends below 575, our analysis will be thrown out.