Best stock recommendations today: MarketSmith India's top picks for 23 June

The uptrend was supported by robust gains in financial, IT, and auto stocks, driven by favourable global cues and supportive policy measures from the RBI, which collectively strengthened overall market sentiment.

Two stock recommendations by MarketSmith India

Buy: Hyundai Motor India Ltd (current price: ₹2,006.20)

• Why it’s recommended: Export-led momentum, product premiumisation, EV & hybrid rollout, and capacity expansion.
• Key metrics: P/E: 29, 52-week high: ₹ 2020, volume: ₹ 2,448 crore
• Technical analysis: Pivot breakout, trending in an uncharted trajectory.
• Risk factors: Intensified competition, margin pressure, and execution risk in capacity expansion.
• Buy at: ₹ 2,006
• Target price: ₹2,220 in two to three months
• Stop loss: ₹ 1,860

Also read: Paint industry’s first dip in 20 years—is a rebound next?

Buy: Indus Towers (current price: ₹404.30)

• Why it’s recommended: Accelerating rental revenue, strategic consolidation, and a strong balance sheet. 
• Key metrics: P/E: 10.87, 52-week high: ₹ 460, volume: ₹ 614 crore
• Technical analysis: Bullish flag continuation breakout, trending above all its key moving averages.
• Risk factors: Telecom operator stress, liquidity risk, regulatory and policy uncertainty, and leverage and valuation risk.
• Buy at: ₹ 404
• Target price: ₹ 448 in two to three months
• Stop loss: ₹ 379

How the Nifty 50 performed on 20 June

On Friday the Nifty 50 surged 1.29%, forming a strong bullish candle on the daily chart, driven by robust gains in the banking & financial, energy, auto, realty, and metal sectors. Investor sentiment was strengthened by the RBI’s relaxation of provisioning norms for project loans. The rally was further supported by short-covering activities. All major sectoral and broader market indices closed in positive territory, resulting in a favorable advance-decline ratio of 2:1, reflecting broad market participation.

From a technical standpoint, Nifty50 found support near its 21-EMA and mounted a strong rebound. The index is presently trading above all its major moving averages across multiple timeframes. However, it is yet to breach the immediate resistance level of 25,200. The daily RSI is trending upward, supported by a positive MACD crossover on the weekly chart. Nonetheless, the daily MACD remains in a negative crossover, indicating the potential for short-term consolidation.

According to O'Neil’s methodology of market direction, Nifty has reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of June 11, 2024.

Also read: Cracks in earnings of tile and plastic pipe makers may widen in Q1

Nifty 50 ended the session on a strong note, closing near the day’s high above 25,100, reflecting continued positive sentiment. However, the index is yet to decisively cross the immediate resistance zone at 25,200. A sustained move above this level could accelerate bullish momentum, potentially driving the index toward 25,700–25,800 in the coming weeks. Conversely, the inability to surpass and hold above 25,200 may lead to range-bound consolidation in the near term.

How did Nifty Bank perform?

Nifty Bank gained 1.30% over the past week, forming a bullish candle on the weekly timeframe. This rise was supported by the RBI’s easing of provisioning norms and positive global cues, including expectations of potential U.S. rate cuts at the upcoming FOMC meeting. The index experienced significant volatility throughout the week, crossing and closing above 56,000, though it has yet to surpass its previous all-time high. Similarly, the broader financial market index, FINNIFTY, also turned positive, gaining approximately 1.20% and forming a bullish candle on the weekly chart.

From a technical perspective, Bank Nifty reclaimed its 21-DMA and is now trading above all its key moving averages across multiple timeframes. The weekly RSI is exhibiting a bullish trajectory, currently positioned around 65, accompanied by a positive MACD crossover. In contrast, the daily RSI remains range-bound near 55, with a negative MACD crossover, indicating the potential for short-term consolidation.

According to O’Neil’s methodology of market direction, Bank Nifty has recently transitioned from an Uptrend Under Pressure to a bullish phase of a Confirmed Uptrend.

Also read: Hindustan Zinc’s expansion plan fails to impress as near-term growth stalls

This key index turned positive and closed above 56,000 on Friday. Going forward, the overall bias is expected to remain positive as long as the index stays above this level. A decisive breakout and sustained move above 57,000 could further strengthen the bullish momentum, potentially driving the index toward 58,500–59,000 in the coming weeks. On the downside, immediate strong support is placed around 55,100–55,000.

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.