Best stock recommendations today: MarketSmith India's top picks for 6 June
Best stocks to buy: Discover MarketSmith India's expert top picks for Friday, 6 June. Get insights into top-performing stocks and make informed investment decisions.
On Thursday, the Nifty 50 gained 0.60%, closing at 24,750, driven by strong performances in RIL, ICICI Bank, and HDFC Bank. Barring the Nifty Realty, Pharma, and Metal, the indices performed well, lifting the overall market sentiment. Optimism ahead of the RBI’s expected rate cut and supportive global cues, including lower US yields and a softer dollar, boosted sentiment.
Two stock recommendations for today, 6 June, by MarketSmith India:
Zydus Lifesciences Ltd (current price: ₹955)
Why it’s recommended: Strong financial performance, strategic acquisitions and expansion, and consistent R&D investment
Key metrics: P/E: 19.92 | 52-week high: ₹1,324.30 | Volume: ₹171.80 crore
Technical analysis: Reclaimed 200-EMA
Risk factors: Regulatory and compliance risks, market and competitive risks
Buy at: ₹955
Target price: ₹1,080 in three months
Stop loss: ₹897
Also read: Can this microfinance lender lead the industry’s turnaround in FY26?
Himadri Speciality Chemical Ltd (current price: ₹497)
Why it’s recommended: Monopoly position in railway financing, rising capital outlay for railways
Key metrics: P/E: 42.91 | 52-week high: ₹ 674 | Volume: ₹159.70 crore
Technical analysis: Downward sloping trendline breakout
Risk factors: Interest rate sensitivity
Buy at: ₹497
Target price: ₹575 in three months
Stop loss: ₹460
Also read: Russia-Ukraine war escalation: Impact on the Indian stock market
Nifty 50: How the benchmark index performed on 5 June
On Thursday, the Nifty 50 opened on a positive note and extended its bullish momentum as it crossed the 21-day moving average (21-DMA) during early trade and remained above it throughout the session. The price action resulted in the formation of a second consecutive green candle on the daily chart. However, it had a long upper wick, indicating some intraday profit booking at higher levels. Barring the Nifty Auto, all other sectoral indices ended on a flat to positive note. Additionally, strong performance in the broader markets supported market breadth, improving the advance-decline ratio to 3:2.
From a technical standpoint, the index crossed and closed above the 21-DMA. However, it continues to trade within a broader sideways range. The relative strength index (RSI) has turned upward and is currently positioned around 55, suggesting improving momentum. However, the MACD remains in a negative crossover and is trending downward, reflecting the absence of a clear bullish confirmation in the near term. On a positional basis, the 50- and 200-DMA have formed a golden crossover on the daily chart, signalling a potential return of medium- to long-term bullish momentum.
As per O'Neil’s methodology of market direction, the overall market status has been downgraded to an "Uptrend Under Pressure" from a “Confirmed Uptrend" on 4 June.
The Nifty 50 has reclaimed its 21-DMA and closed above it with a positive bias. Sustaining above this level will be crucial for the index to advance toward 25,000–25,200 in the near term. A decisive breakout above 25,200 could further strengthen the bullish momentum, potentially propelling the index toward the 25,700–25,800 zone in the coming weeks. On the downside, immediate support is seen near 24,600, followed by 24,500–24,400.
How did the Nifty Bank perform yesterday?
On Thursday, the Nifty Bank traded within a sideways range and ended with a marginal gain of 0.15%. The index opened on a positive note but exhibited significant intraday volatility, moving in a choppy, roller-coaster fashion. The price action resulted in the formation of a long-legged Doji candle on the daily chart, reflecting indecisiveness near its all-time high levels. Technically, the index has been consolidating in a narrow range around its record high for the past five weeks, suggesting the potential development of a bullish continuation pattern on the daily timeframe.
Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong?
From a momentum perspective, the relative strength index (RSI) is currently moving sideways within a bullish zone, hovering around 61. However, the Moving Average Convergence Divergence (MACD) continues to exhibit a negative crossover, reinforcing a cautious undertone. This divergence between momentum indicators suggests that the upside potential remains constrained unless fresh buying emerges, particularly on a sustained move above the key resistance level of 56,000.
According to O’Neil’s methodology of market direction, the Nifty Bank has recently transitioned from an “Uptrend Under Pressure" to a more constructive phase of a “Confirmed Uptrend", highlighting renewed strength and resilience in the broader trend.
The Nifty Bank is currently consolidating near its all-time high but continues to encounter resistance around 56,000. A decisive breakout and sustained close above this threshold are essential to reaffirm bullish momentum and potentially trigger a rally toward 57,500–58,000. In the absence of such a breakout, the index is likely to remain range-bound within its ongoing consolidation phase. On the downside, immediate support is placed near 55,000, with the next significant level at 54,500.
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, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
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.
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