Best stock recommendations today: MarketSmith India's top picks for 24 June

Two stock recommendations by MarketSmith India:

• Buy: Ahluwalia Contracts (India) Ltd (current price: ₹943.10)
• Why Ahluwalia Contracts is recommended: Strong order book, revenue growth and margin improvement, and operational efficiency.
• Key metrics: P/E: 31.24, 52-week high: ₹ 1542, volume: ₹ 11 crore
• Technical analysis: 200-EMA retake, higher-peak higher-trough price structure
• Risk factors: Regulatory disruption, dependence on fixed price contracts
• Buy at: ₹ 943
• Target price: ₹1,090 in two-three months
• Stop loss: ₹ 890

Buy: Chambal Fertilizers and Chemicals Ltd (current price: ₹563.30)

• Why Chambal Fertilizers and Chemicals is recommended: Robust financial performance and earnings growth, operational efficiency, strong balance sheet, and cash flow.
• Key metrics: P/E: 13.68, 52-week high: ₹ 742, volume: ₹ 164.48 crore
• Technical analysis: Reversal after taking support around the 200-DMA.
• Risk factors: Volatility in revenue, dependence on subsidies, regulatory risk
• Buy at: ₹ 563.30
• Target price: ₹ 630 in two to three months
• Stop loss: ₹ 524

Also Read: Inside India’s SME IPO boom—and why it’s getting riskier

Nifty 50: How the benchmark Index Performed on 23 June

On Friday, Nifty50 opened on a negative note and traded with notable volatility throughout the session, forming an ‘inside range doji’ candle on the daily chart, signaling consolidation and indecision among traders. On the sectoral front, all major indices closed lower except Metals. 

Meanwhile, broader market segments outperformed, with both mid‑cap and small‑cap indices ending in positive territory. Underperformers included Nifty IT, Auto, and FMCG stocks. Market breadth flattened, with the advance‑decline ratio finishing at a balanced 1:1, reflecting a neutral session across the board.

Technically, Nifty50 remains hovering around its 21‑EMA, successfully closing above this key support level following today's market action. The index continues to trade within a well-established rectangular range of 24,500–25,200 over the past five weeks. 

Momentum indicators remain subdued. The daily relative strength index (RSI) held steady around 55, while the MACD remains in a negative crossover configuration. These signals suggest a high probability of continued short-term consolidation.

Also Read: How Vedanta's debt burden turned Hindustan Zinc into a net-debt company

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.

Nifty50 concluded the session on a negative note, failing to sustain above 25,100, which underscores the prevailing sideways sentiment. The index once again struggled to achieve a decisive breakout above 25,200 resistance level. 

Further, over the past five weeks, it has been oscillating within a well-defined range of 24,500 to 25,200. A sustained close above 25,200 could trigger a bullish breakout, potentially moving the index toward 25,700–25,800. However, continued failure to surpass this key threshold may result in extended range-bound consolidation in the near term.

How did Nifty Bank perform yesterday?

BankNifty lost 0.34% on Monday amid volatility due to weakness in major constituents like SBI, ICICI Bank, and HDFC Bank. It has formed an inside range candle on the daily chart, indicating another day of consolidation.

From a technical perspective, Bank Nifty remained traded above its 21-DMA as well as trading above all its key moving averages across multiple timeframes. The weekly RSI exhibiting a bullish trajectory, currently positioned around 63, 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,".

The index closed on a positive note above 56,000 on Monday, despite a volatile trading session. The near-term outlook remains constructive, provided it holds above this level. A decisive breakout above 57,000 could amplify bullish momentum, paving the way for an upside move toward 58,500–59,000. Conversely, key support is now positioned in 55,100–55,000, which may act as a cushion against any short-term pullbacks.

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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.