Three stocks to buy today: Expert Ankush Bajaj's picks for 3 June

Top three stocks recommended by Ankush Bajaj for 3 June

Buy Bank of India (current price: ₹125.25)

• Why it’s recommended: The stock has recently shown strong upward momentum and is trading near breakout levels with increasing volume, indicating buying interest and potential continuation towards higher targets.
• Key metrics: Resistance level: ₹133–135 (short-term target range); support level: ₹121 (pattern invalidation level); pattern: Bullish continuation with strong momentum and volume confirmation
• RSI: Trending bullish on both daily and intraday charts, signaling strength in the ongoing move
• Technical analysis: Bank of India is trading with positive bias and has maintained higher highs and higher lows on the lower time frames. The current price action near ₹125.25, supported by strong RSI, suggests the stock could test the ₹133–135 zone in the coming sessions if it sustains above the breakout level.
• Risk factors: A breakdown below ₹121 could invalidate the bullish setup and attract profit booking. Any sharp correction in the PSU banking space or broader indices may impact the expected move.
• Buy at: ₹125.25
• Target price: ₹133–135 in 4–5 days
• Stop loss: ₹121

Also Read: Apollo Hospitals' healthy capacity addition to drive future growth

Buy Cholamandalam Investment & Finance Company Ltd (current price: ₹1581)

• Why it’s recommended: After making a new lifetime high, the stock witnessed selling pressure and has now bounced back from the demand zone between ₹1580– ₹1545. This suggests a potential pullback move, supported by price action and recovery from key support levels.
• Key metrics: Resistance level: ₹1650–1670 (short-term target range. Support level: ₹1547 (pattern invalidation level); Pattern: Bullish pullback setup from demand zone
• RSI: Bullish on both daily and intraday time frames, supporting the possibility of a short-term upside move
• Technical analysis: CHOLAFIN has shown strength by rebounding from its demand zone, and the current price structure indicates a likely pullback towards the ₹1650–1670 zone. Sustaining above ₹1581 with improving momentum supports a bullish outlook in the near term.
• Risk factors: A breakdown below ₹1547 may invalidate the expected pullback. Broader market weakness or negative cues from the financial sector could also weigh on price action.
• Buy at: ₹1581
• Target price: ₹1650–1670 in 4–5 days
• Stop loss: ₹1547

 

Buy AU Small Finance Bank Ltd (current price: ₹718.65)

• Why it’s recommended: On the daily chart, the stock has closed above a recent trendline, confirming a breakout. Additionally, on the 45-minute time frame, AUBANK has given a triangle breakout at ₹700, projecting a potential target around ₹745. The setup indicates that the ongoing rally is likely to continue.
• Key metrics: Resistance level: ₹738–745 (short-term target range); Support level: ₹708 (pattern invalidation level); Pattern: Trendline breakout on daily chart and triangle breakout on 45-min chart
• RSI: Bullish on both daily and lower time frames, supporting strength in the breakout
• Technical analysis: AUBANK has confirmed a breakout on multiple time frames, showing strong bullish structure. The price action above ₹718.65, backed by volume and momentum, supports further upside toward the projected targets.
• Risk factors: A fall below ₹708 could invalidate the breakout structure. Broader banking sector weakness or negative news flow may affect short-term sentiment.
• Buy at: ₹718.65
• Target price: ₹738–745 in 4–5 days
• Stop loss: ₹708

Also read: AU Small Finance is in repair mode, but net interest margin could be a challenge

Market Wrap

On Monday, the Indian stock market opened with a minor gap-down and continued to face selling pressure in the early hours, with the Nifty slipping to an intraday low of 24,526. Although there was some recovery later in the day, overall sentiment remained subdued, and the market lacked strong buying interest.

The Nifty 50 ended the session 34.10 points lower, down 0.14%, to close at 24,716.60. The BSE Sensex also remained weak throughout the day and ended almost flat at 81,373. On the other hand, the Bank Nifty outperformed the broader indices, gaining 103 points or 0.18% to settle at 55,903, supported by strength in banking stocks.

Among sectors, the realty index was the top performer, rising 2.3%, reflecting strong investor interest in the real estate space. PSU Banks continued their positive momentum and gained 2.31% during the session.

On the flip side, the metal and IT sectors were under pressure, with both indices declining by 0.70% each.

In terms of stock-specific action, Adani Ports led the gainers with a rise of 2.56%, followed by Britannia, which gained 1.70%, and Mahindra & Mahindra which moved up 1.65%. Among the top losers were Hero MotoCorp, which fell 1.79%, Tech Mahindra down 1.58%, and JSW Steel, which lost 1.48% amid weakness in the metals segment.

Nifty Technical Analysis

The Nifty witnessed another day of range-bound action but managed to close slightly in the green, ending with a minor loss of 34 points at 24,716.60.

Despite the closing being positive, the index saw a sharp dip during the session, touching a low of 24,526.15 before recovering. It continues to trade within a narrow consolidation band of 24,500 to 25,000 for the 11th consecutive session.

The 20-day moving average, currently placed at 24,705, is acting as a strong near-term support. The index respected this level once again today, reinforcing its importance. A decisive breach below this could open the door for a further decline towards 24,400.

On the upside, immediate resistance remains in the 24,850–24,900 zone, and a breakout above this band may push the index towards 25,100.

From a technical perspective, Nifty is still trading above both the 20-day moving average (24,705) and the 40-day exponential moving average (24,297.30), which is a positive sign. However, caution remains warranted as the daily momentum indicator continues to hover near the equilibrium line, showing no clear direction, and suggesting this consolidation phase may soon give way to a directional breakout.

On the hourly chart, the index is currently trading below both the 20-hour (24,732) and 40-hour (24,757) exponential moving averages, which indicates short-term weakness. However, if Nifty sustains above the 24,700 mark, there is a possibility of an upward shift in momentum in the coming sessions.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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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.