Best stocks to buy today: Expert Raja Venkatraman's recommendations for 5 June

Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader:

Rail Vikas Nigam Ltd (RVNL): Buy CMP and dips to ₹405 | Stop ₹390 | Target ₹470-485

Indoco Remedies Ltd: Buy CMP and dips to ₹264 | Stop ₹258 | Target ₹315-340

Gujarat State Fertilizers & Chemicls Ltd (GSFC): Buy above 215 and dips to ₹200 | Stop ₹195 | Target ₹240-260

Stock market recap

Indian benchmark indices reversed a three-day decline and closed in the green, with the Nifty 50 climbing above 24,600. Global market positivity and widespread sectoral buying, except in realty, propelled the rally.

At market close, the Sensex gained 260.74 points (a 0.32% increase) to finish at 80,998.25, while the Nifty 50 added 77.70 points (also up 0.32%) to reach 24,620.20.

Among the biggest performers on the Nifty were Eternal, Jio Financial, Bharti Airtel, IndusInd Bank, and Reliance Industries. In contrast, stocks such as Trent, Bajaj Finserv, Shriram Finance, TCS, and Axis Bank lagged, registering losses.

The BSE Midcap and Smallcap indices each appreciated by 0.5%.

In the US, stock indices ended Tuesday on a positive note, bolstered by gains from Nvidia and other semiconductor firms, as investors awaited further clarity on Washington’s tariff strategies amid negotiations with its trading partners.

Also Read: Russia-Ukraine war escalation: Impact on the Indian stock market

Asian equities also closed higher, led by a surge in technology shares, while European markets fared well, with both the CAC and DAX indices advancing by nearly 1% each.

Outlook for trading

The Nifty has been weaker in comparison, and the sustained bearish pressure seen on every rally indicates that it is inclined for some downward bias as the trends are unable to head higher. While sector rotation is happening, we are reaching a point where the indices have become divergent.

HDFC Bank has been under a great deal of stress, and despite some decent numbers, the stock has not affected the market condition. As we have been discussing, the trends were expected to head into the upper end of the value resistance zone as the indicators were tiring out. The rise witnessed in Nifty Bank has suddenly formed a rounding pattern and is treading higher, attempting to hold on to the bearish pressure that is emerging at higher levels. However, due to a lack of triggers, we are witnessing a ranging action that could keep the trends from recovering swiftly.

A look at the NiftyBank indicates that until 54,000 is given away, bulls will attempt to rebound. The Nifty Bank is a sector that should be tracked. Until 56,000 is exceeded, we can look at stock-specific action where there are divergent views that have been displayed across all the component stocks. PSU Banks are having it rough, and the continued positive vibes being exhibited shall make it difficult for the Nifty Bank to recover. This, in turn, will spill over to the other sectors like auto, realty and finance. Despite marketson Wednesday showing some signs of a recovery, the inability of the Nifty Bank to clear the 56,000 mark seems limited ahead of the event. Till then, this index holds the key for some trends to emerge.

We continue to maintain that the levels to be broken on the downside will remain at 24,500. Until this is achieved, we should remain alert about any selling pressure that can emerge at higher levels. Now, we need to see the Nifty move above 24,800, which is the immediate resistancefor some bullish revival. With the Open Interest data clearly indicating a revival, one should keep tracking a 30-minute range breakout on Thursday for creating some long.

As indices are not showing much decline, one should look to encash some stock-specific action.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

RVNL (Cmp 429.95)

Why it’s recommended: Railway stocks had some undercurrent in the last few days, and this counter had a challenging task until the fortunes turned around in May 2025. From the charts, we can observe that the strong upside was reinforced on Wednesday. Currently, there is a strong push above the value resistance zone around 420. Post surpassing this level, the rise in momentum supported by steady volumes is highlighting the possibility of more upward traction.

Key metrics: P/E: 75.45 | 52-week high: ₹647 | Volume: 41.13M.

Technical analysis: Support at ₹320, resistance at ₹550.

Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns.

Buy at: CMP and dips to ₹405.

Target price: ₹470-485 in 1 month.

Stop loss: ₹390.

Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong?

INDOCO (Cmp 283.75)

Why it’s recommended: Indoco Remedies Ltd has secured final approval from the USFDA for its Abbreviated New Drug Application (ANDA) for Allopurinol Tablets USP, 200 mg. After a strong consolidation seen in the last few months, the stock is showing some encouraging signs and can look to move higher as trends demonstrate a strong upward drive. Investors can look to go long.

Key metrics: 52-week high: ₹385.75 | Volume: 119.49K.

Technical analysis: Support at ₹215, resistance at ₹350.

Risk factors: Structural issues on the domestic front and regulatory setbacks on the export front.

Buy at: CMP and dips to ₹264.

Target price: ₹315-340 in 1 month.

Stop loss: ₹258.

Also Read: These five private banks in India have the lowest NPAs. Should you invest?

GSFC (Cmp 212.19)

Why it’s recommended: With monsoon appearing early, we can look at the trends emerging that can stage a strong run in the fertiliser stocks. As this sector picks up, we can look at some notable names that are showing some promise. This counter, after the initial build-up, is seen building some strong push to the upside. As the potential to generate upward momentum improves, one can consider some long-term.

Key metrics: P/E: 14.74 | 52-week high: ₹274.50 | Volume: 6.31 M.

Technical analysis: Support at ₹175, resistance at ₹320.

Risk factors: Sluggish growth, negative quarterly results, and reduced institutional investor participation.

Buy at: above 215 and dips to ₹200.

Target price: ₹240-260 in 1 month.

Stop loss: ₹195.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.