Best stock recommendations today: MarketSmith India's top picks for 12 June

Gains in IT, pharma, and energy stocks helped offset losses in PSU banks and FMCG. While the RBI’s supportive stance offered some comfort, stretched valuations and muted global trends limited the upside. Meanwhile, the smallcap and midcap indices ended their multi-session winning streak, declining due to broad-based profit booking.

Two stock recommendations for today by MarketSmith India

Buy: Saksoft Ltd. (current price: ₹207.56)

• Why it’s recommended: Expertise in digital transformation, focus on innovation, and technology
• Key metrics: P/E: 24.86, 52-week high: ₹ 319.50, volume: ₹9.78 crore
• Technical analysis: Reclaimed 200-DMA
• Risk factors: Economic slowdown risk, currency fluctuation risk, and regulatory and compliance risk
• Buy at: ₹ 207.5
• Target price: ₹ 238 in three months
• Stop loss: ₹ 192

Also read: Rally in SBI Card may have priced in improved outlook

Buy: Infosys Ltd (current price: ₹1,630)

• Why it’s recommended: Strong global client base and trusted brand, digital transformation, and cloud adoption
• Key metrics: P/E: 24.79, 52-week high: ₹ 2,000, volume: ₹ 1,714.23 crore
• Technical analysis: Trendline breakout
• Risk factors: Attrition and talent costs, macroeconomic headwinds
• Buy at: ₹ 1,630
• Target price: ₹ 1,850 in three months
• Stop loss: ₹ 1,530

How Nifty 50 performed on 11 June

Bulls staged a comeback on Wednesday, pushing Nifty 50 above 25,200 intraday for the first time since 15 October 2024. However, the index was unable to sustain those gains and closed with only a marginal upside. The session’s price action led to the formation of a Doji candle on the daily chart, signaling indecision and a tug-of-war between bulls and bears. 

PSU banks, financial services, and FMCG stocks underperformed due to profit booking, while IT, pharma, and energy stocks outperformed. Broader market participation was largely neutral, as reflected in a balanced advance-decline ratio of about 1:1.

From a technical perspective, the index continues to trade above all its key moving averages across multiple timeframes, reinforcing the underlying bullish sentiment. The relative strength index (RSI) has turned upward and is currently hovering near 62–63, reflecting strengthening momentum. However, the MACD remains in a negative crossover, indicating that a clear bullish confirmation is yet to emerge. Importantly, a recent golden crossover, where the 50-DMA crosses above the 200-DMA, has formed on the daily chart, signaling a potential resurgence in medium- to long-term bullish momentum.

Also read: Bata’s turnaround is taking time—and the market’s patience is wearing thin

According to O'Neil’s methodology of market direction, Nifty has reclaimed its recent high of 25,116 and is now trading firmly above all its key moving averages. As a result, the market condition has been upgraded from an uptrend under pressure to a confirmed uptrend.

Nifty 50 closed the session on a positive note, reclaiming its recent high and confirming its ongoing bullish trend. The index is once again approaching its resistance zone, and a decisive breakout above 25,200 could pave the way for an extended rally toward 25,700–25,800. On the downside, immediate support is positioned around 24,600, which may act as a cushion in the event of any pullbacks.

 How did Nifty Bank perform?

On Wednesday, Nifty Bank opened flat and remained in negative territory for the majority of the session. Nifty Bank has formed a second consecutive bearish candle on the daily chart with a lower-high and lower-low price structure. The index lost around 0.30% intraday.   

From a technical perspective, the index maintains a robust position, above its key moving averages across all major timeframes, reinforcing its strong bullish momentum. The RSI continues its upward trajectory on both the daily and weekly charts, currently hovering near 63 on the daily timeframe. The daily MACD indicator is exhibiting a positive crossover, remaining above the central line on both the daily and weekly charts, further supporting the bullish outlook.

Also read: Lower crude brings relief to Mahanagar Gas amid falling APM gas allocation

According to O’Neil’s methodology of market direction, Nifty Bank recently transitioned from an uptrend under pressure to a confirmed uptrend, highlighting renewed strength and resilience in the broader trend.

The index continues to display a strong bullish sentiment across multiple timeframes, trading in record territory. However, it faces resistance near 57,000, which has limited its gains over the past few sessions. While the overall bullish trend and sentiment point to a likely continuation of the uptrend, a phase of technical consolidation around these all-time high levels remains a possibility. The index could establish a broad trading range between 56,000 and 57,000 before potentially resuming its upward trajectory toward 58,500–59,000 in the coming days.

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.

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.