Nifty 50 and Bank Nifty analysis, insights into the market rally, and expert stock recommendations for June 7. Discover technical analysis from top analysts, reasons behind the market recovery, and five buy or sell stock picks to consider today.
Market Overview and Recent Performance
After experiencing a significant crash on Tuesday, the Indian stock market has shown resilience by extending its recovery for the second consecutive session on Thursday. The Nifty 50 index rose by 201 points, closing at 22,821, while the BSE Sensex surged 692 points, finishing at 75,074. The Bank Nifty index also climbed 237 points, ending at 49,291. Notably, the broad market indices outperformed the frontline Indian indices, with the advance-decline ratio rising to 6.29:1, indicating strong market breadth.
Trade Setup for Nifty 50 and Bank Nifty
Nifty 50 Analysis
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, offers insights into the short-term trend of the Nifty 50 index. He states, “The short-term trend of the Nifty 50 index continues to be positive amidst high volatility. Having recently moved above the hurdle of 22,250 levels (midpart of Tuesday’s long bear candle), the Nifty could move towards the next upper hurdle of 23,200 (upper part of the long bear candle) in the near term. Immediate support for Nifty today is placed at 22,640 levels.”
Bank Nifty Analysis
Om Mehra, Technical Analyst at SAMCO Securities, provides his perspective on the Bank Nifty. He notes, “The Bank Nifty ended the session at 49,291.90, up by 0.48%. It is currently holding above the 20-day and 50-day moving averages. The index closed above the 61.8% Fibonacci retracement, which remains at 49,180, providing a solid base. The immediate resistance is placed at 49,700, and crossing this level might push the index to the 50,200 – 50,350 levels. The daily chart’s Relative Strength Index (RSI) has yet to show a positive crossover; once this occurs, we can expect a stronger bullish momentum to follow.”
Factors Driving the Market Rally
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, highlights the reasons behind the recent market rally. He explains, “Investors heaved a sigh of relief as confidence strengthened post two key allies pledged their support to form a new government with the BJP. Even global factors contributed to today’s rally as hopes revived for a rate cut possibility in the US Fed’s September meeting after weaker-than-expected jobs data. All eyes will be on government formation this weekend along with RBI policy outcome and commentary today.”
Expert Stock Picks for Friday
Stock market experts Sumeet Bagadia, Executive Director at Choice Broking, and Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, have recommended five buy or sell stocks for today.
Sumeet Bagadia’s Stock Picks
- VA Tech Wabag
- Buy at: ₹1078
- Target: ₹1150
- Stop Loss: ₹1035 VA Tech Wabag is exhibiting strong bullish momentum, trading at an all-time high of ₹1087. The recent breakout above the crucial resistance at ₹1040 levels is a significant technical development supported by robust trading volumes, reinforcing the stock’s strength. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
- Infosys
- Buy at: ₹1472.25
- Target: ₹1545
- Stop Loss: ₹1435 Infosys share, currently trading at ₹1472.25, has recently broken out above ₹1454 and formed a strong bullish candle on the daily chart. The immediate support is near the ₹1435 level, which is also close to its short-term (20 Day) EMA levels. The current price is exhibiting strong bullish momentum, expected to continue towards the ₹1545 level.
Ganesh Dongre’s Stock Picks
- SBI
- Buy at: ₹818
- Target: ₹850
- Stop Loss: ₹800 SBI has shown significant support around ₹800. At the current juncture, the stock has again seen a reversal price action formation at the ₹818 price level, which may continue its rally till its next resistance level of ₹850. Traders can buy and hold this stock with a stop loss of ₹800 for the target price of ₹850 in the near term.
- BHEL
- Buy at: ₹277
- Target: ₹295
- Stop Loss: ₹265 In the short-term trend, BHEL has seen a bullish reversal pattern. Technically, a reduction could be possible till ₹295. Holding the support level of ₹1355, this stock can bounce toward the level of ₹295 in the short term. Traders can go long with a stop loss of ₹265 for the target price of ₹295.
- Bandhan Bank
- Buy at: ₹191
- Target: ₹200
- Stop Loss: ₹185 Bandhan Bank has shown significant support around ₹185. 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. Traders can buy and hold this stock with a stop loss of ₹185 for the target price of ₹200 in the near term.
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Conclusion
The Indian stock market is currently exhibiting a positive trend amidst high volatility. Both the Nifty 50 and Bank Nifty indices are showing signs of bullish momentum, supported by strong technical indicators and favorable global and domestic factors. With key events such as government formation and the RBI policy outcome on the horizon, market participants should stay informed and consider expert recommendations for potential buy or sell opportunities.
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