Best stock recommendations today: MarketSmith India's top picks for 25 June
Stock recommendation today: Discover MarketSmith India's expert top picks for Wednesday, 25 June. Get insights into top-performing stocks and make informed investment decisions.
On Tuesday, the Nifty 50 rose 0.29%, driven by easing geopolitical tensions after the US announced a ceasefire between Iran and Israel. This development led to a sharp decrease in crude oil prices, boosting investor sentiment, especially in oil-dependent sectors such as airlines and oil marketing companies. Mid- and small-cap stocks also performed well, and the India VIX declined, indicating reduced market volatility.
Two stock recommendations by MarketSmith India:
Ramkrishna Forgings (current price: ₹646.15)
Why it’s recommended: Consistent revenue growth, diversification and capacity expansion, healthy orderbook, and margin expansion.
Key metrics: P/E: 35.46 | 52-week high: ₹1,064 | Volume: ₹122 crore
Technical analysis: Downward sloping trendline breakout, 50-DMA retake.
Risk factors: Working capital and debt, trade tariffs and regulations, input cost risk.
Buy at: ₹646
Target price: ₹750 in two to three months
Stop loss: ₹598
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KRN Heat Exchanger and Refrigeration (current price: ₹848.25)
Why it’s recommended: Robust financial momentum, capacity expansion and new product segment, export expansion, R&D focus.
Key metrics: P/E: 86.56 | 52-week high: ₹1,012 | Volume: ₹185 crore
Technical analysis: Downward sloping trendline breakout, 100-DMA retake
Risk factors: Customer concentration and contract risk, raw material procurement risk, execution risk, and governance risk.
Buy at: ₹848
Target price: ₹970 in two to three months
Stop loss: ₹794
How Nifty 50 performed on 24 June
On Tuesday, the index opened positively and maintained a bullish trajectory throughout the session. It surged past 25,300 in the first half, but profit-taking in the latter half trimmed gains, resulting in a moderate 0.29% rise to close at 25,044. The index maintained a ‘higher-high and higher-low’ price structure on the daily chart, indicating upward momentum. All the major sectoral and broader-market indices closed flat to positive, with major gains from Banking/Financials, Metals, Auto, and Energy. Market breadth remained favourable, with the advance‑decline ratio concluding at approximately 2:1 in favour of advancing stocks.
Technically, the index remains above all its key moving averages across multiple time frames. However, it once again failed to sustain above the immediate resistance level of 25,200 and settled at 25,044. For the past five weeks, the Nifty 50 has been oscillating within a well-defined rectangular range of 24,500-25,200. Momentum indicators reflect a lack of strong directional bias. At the same time, the RSI remains flat around 57 and the MACD continues to stay in a negative crossover, suggesting an ongoing phase of consolidation.
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According to O'Neil’s methodology of market direction, the Nifty has reclaimed its recent high of 25,116. Hence, the market status has been upgraded to a Confirmed Uptrend as of 11 June 2024.
Nifty 50 surged past 25,300 intraday, driven by easing geopolitical tension, weaker oil prices, and global cues. However, it couldn’t sustain the gains beyond 25,200, ultimately closing just above 25,000 with a bullish tilt. Looking ahead, a firm close above 25,200 could catalyze a bullish breakout toward 25,700–25,800. However, if the index fails to cross and hold this threshold again, it is likely to remain trading in the range-bound zone of 25,200-24,500.
How Nifty Bank performed yesterday
On Tuesday, the Nifty Bank gained 0.72% and formed a Doji candle with a long upper wick, signalling profit booking at the day’s high. The rally was primarily driven by heavyweights such as HDFC Bank, Kotak Bank, ICICI Bank, Axis Bank, and SBI. On the daily chart, the index formed a ‘higher-high and higher-low’ price structure, reinforcing a bullish undertone in the banking sector. Similarly, FINNIFTY closed with a gain of 0.73%, reflecting broader participation across the Banking and Financial space.
From a technical standpoint, this major sectoral index continues to trade above all its key moving averages across multiple time frames, reinforcing the bullish undertone in the banking space. On the daily chart, the RSI is exhibiting a positive trajectory and is currently positioned around 59, suggesting improving momentum. However, the MACD remains in a negative crossover, indicating consolidation in the short term. On the weekly time frame, both the RSI and MACD are trending positively, supporting a medium-term uptrend.
According to O’Neil’s methodology of market direction, the Nifty Bank has recently transitioned from an “Uptrend Under Pressure" to a bullish phase of a “Confirmed Uptrend".
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The index ended Tuesday’s session on a positive note, closing above 56,000 despite intraday volatility. The near-term outlook remains constructive as long as it remains above this key level. A decisive breakout above 57,000 could strengthen bullish momentum and potentially drive the index toward 58,500-59,000. On the downside, strong support is placed in 55,100-55,000, which is likely to act as a buffer against short-term declines.
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.
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