Top 3 stocks to buy today, recommended by Ankush Bajaj
Market expert Ankush Bajaj recommends these three stocks to buy today.
Stock market today: Indian equities ended Friday, 6 June, with stellar gains after the RBI delivered a double bonanza—a surprise 50 basis point cut in the repo rate and a 100 basis point reduction in the cash reserve ratio (CRR)—raising hopes of stronger credit demand and a rebound in domestic growth.
The Nifty 50 rose 252 points, or 1.02%, to close at 25,003, while the Sensex gained 443 points, or 1%, to end at 82,188.
The move came as a surprise at a time when markets had been losing steam, with the Nifty slipping over the past two weeks amid concerns over stretched valuations and global trade uncertainty. Rate-sensitive sectors—led by real estate, financials, and auto—rallied sharply, while optimism around an above-normal monsoon lifted FMCG stocks.
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Against this backdrop, market expert Ankush Bajaj has recommended three stocks for Monday, 9 June.
Top 3 stocks to buy today, recommended by Ankush Bajaj:
Buy: ICICI Lombard General Insurance Company Ltd (ICICIGI) — Current Price: ₹2,006.20
Why it’s recommended: The stock has recently broken out of an inverse head-and-shoulders pattern on the daily chart, indicating a strong bullish reversal. It is trading well above its key moving averages, confirming an established uptrend. The breakout was supported by a sharp increase in volume, and the RSI is above 55, trending higher. The MACD has given a bullish crossover, reinforcing momentum. If ICICIGI holds above the breakout level of ₹1,950, it is likely to continue its upward move toward ₹2,100–2,120 in the short term.
Key metrics: Resistance level: ₹2,100–2,120 (short-term target range) Support level: ₹1,950 (pattern invalidation level)
Pattern: Inverse head-and-shoulders breakout on the daily chart
RSI: Above 55, rising, indicating strengthening momentum
Technical analysis: ICICIGI’s recent breakout from the neckline level of ₹1,913 signals a bullish move. The structure is validated by strong volume and a clear uptrend on both daily and intraday charts. If the stock maintains levels above ₹1,950, it could move higher to test the ₹2,100–2,120 zone over the next 4–5 trading days.
Risk factors: A sustained fall below ₹1,950 would invalidate the breakout and may lead to short-term correction. Broader market volatility or sectoral weakness could also impact price movement.
Buy at: ₹2,006.20
Target price: ₹2,100–2,120 in 4–5 days
Stop loss: ₹1,950
Buy: Muthoot Finance Ltd (MUTHOOTFIN) — Current Price: ₹2,446.20
Why it’s recommended: The stock has confirmed an ascending triangle breakout on the daily chart, which typically signals trend continuation. It broke past the critical resistance at ₹2,435 with strong bullish candles and higher volume. RSI is above 70, indicating strong momentum, and MACD is showing a bullish trajectory. The breakout has also been confirmed on lower timeframes with consolidation and follow-through buying.
Key metrics: Resistance level: ₹2,520–2,550 (short-term target range) Support level: ₹2,380 (pattern invalidation level)
Pattern: Ascending triangle breakout on the daily chart
RSI: Above 70, indicating bullish strength despite slightly overbought territory
Technical analysis: Muthoot Finance is trading in a strong uptrend after breaking out from a two-month consolidation zone. The breakout suggests continuation toward ₹2,520–2,550 in the short term, provided it sustains above ₹2,435. Strong buying momentum and a bullish chart structure support the near-term target.
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Risk factors: A break below ₹2,380 could invalidate the breakout and trigger short-term weakness. A sudden reversal in market sentiment could also affect performance.
Buy at: ₹2,446.20
Target price: ₹2,520–2,550 in 4–5 days
Stop loss: ₹2,380
Buy: IIFL Finance Ltd (IIFL) — Current Price: ₹451.05
Why it’s recommended: The stock has given a triangle breakout on the lower timeframes and closed decisively above the major resistance level of ₹440. This breakout is a strong technical signal indicating bullish continuation. The breakout is backed by strong price action and momentum indicators. The RSI on the daily chart is trading above 80, reflecting strong buying strength, and the MACD is on the buy side, supporting the ongoing uptrend. The stock shows follow-through buying and a strong structure across both intraday and daily charts.
Key metrics: Resistance level: ₹465–470 (short-term target range)Support level: ₹443 (pattern invalidation level)
Pattern: Triangle breakout on the lower timeframe with confirmation on daily close
RSI: Above 80 on the daily chart, signalling aggressive bullish momentum
Technical analysis: IIFL Finance has confirmed a breakout above its key resistance level of ₹440 with a strong close at ₹451.05. The breakout structure is supported by a high RSI and a bullish MACD crossover, indicating sustained buying interest. The stock is poised to test the ₹465–470 range in the coming 4–5 sessions if it holds above the breakout zone.
Risk factors: A close below ₹443 would invalidate the bullish breakout and may lead to short-term correction or profit booking. A broader market pullback may also affect the stock’s momentum.
Buy at: ₹451.05
Target price: ₹465–470 in 4–5 days
Stop loss: ₹443
Stock Market Wrap for 6 June
On Friday, 6 June, Indian equity benchmarks opened with a slight gap-up and moved largely sideways through the session. The Nifty 50 struggled to breach the 24,500 mark, which acted as strong intraday resistance. Despite repeated attempts, the index lacked momentum and remained range-bound. However, selective buying in key stocks helped indices end the day in the green.
The Nifty 50 closed 252.15 points, or 1.02%, higher at 25,003.05, while the BSE Sensex rose 746.95 points, or 0.92%, to settle at 82,188.99. Bank Nifty outperformed, gaining 817.55 points, or 1.47%, to finish at 56,578.40.
Among sectors, realty led the gains, rising 4.68%, driven by renewed interest in energy-related names. The metal index advanced 1.90%, while financials added 1.75%. No sector ended in the red.
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On the stock-specific front, Shriram Finance topped the gainers, climbing 5.65%, followed by Bajaj Finance (up 4.90%) and JSW Steel (up 3.73%). On the losing side, HDFC Life Insurance slipped 0.85%, Bharat Electronics Ltd declined 0.71%, and Bharti Airtel fell 0.46%.
Nifty Technical Analysis Daily & Hourly
On Friday, 6 June, the Nifty 50 index closed at 25,003.05, marking a gain of 252.15 points or 1.02%. The index experienced an intraday low of 24,671.45 and a high of 25,029.50, indicating a strong recovery from lower levels. This close near the upper boundary of its consolidation range (24,500–25,100) suggests a potential breakout.
Technically, Nifty is trading above its key moving averages: the 20-day moving average (24,797) and the 40-day exponential moving average (24,377). On the hourly chart, it remains above both the 20-hour moving average (24,782) and the 40-hour exponential moving average (24,776), reinforcing short-term bullish momentum. The continuation of the falling wedge breakout pattern on the hourly chart projects a target near 25,213.
Momentum indicators are also supportive. The daily RSI stands at 60, while the hourly RSI is at 67, both indicating healthy strength. The MACD readings are positive, with the daily MACD at 169 and the hourly MACD at 86, suggesting continued bullish momentum.
In the derivatives segment, the total Call Open Interest (OI) is 12.31 crore, and the total Put OI is 11.98 crore, resulting in a difference of -32.12 lakh, indicating a bearish sentiment. However, the change in OI shows a bullish trend, with total Call OI change at 4.21 crore and total Put OI change at 5.57 crore, leading to a positive difference of 1.36 crore. The maximum Call OI is at the 26,000 strike, while the maximum Put OI is at the 24,000 strike. The Put-Call Ratio (PCR) stands at 0.98, reflecting cautious optimism.
India VIX, the volatility index, declined by 3.00% to close at 14.63, suggesting reduced market volatility and increased investor confidence.
Global cues are also favourable. High-level trade talks between the United States and China are scheduled in London on June 9, aiming to ease tensions in their economic relationship. Additionally, the U.S. Consumer Price Index (CPI) for May is set to be released on June 11, which could influence global market sentiment and monetary policy expectations.
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In conclusion, Nifty’s close above the 25,000 mark, supported by positive technical indicators and favourable global cues, suggests a bullish outlook for the coming sessions. A sustained move above 25,100 could open the path towards 25,200–25,300 levels. On the downside, immediate support lies at 24,600–24,500. Traders should monitor global developments, especially the U.S.-China trade talks and upcoming U.S. inflation data, for potential market-moving events.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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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.
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