Indian stocks demonstrated renewed vigor on 5 June as market participants positioned themselves ahead of the Reserve Bank of India’s (RBI’s) upcoming monetary policy announcement. With market sentiment buoyed by strength across Asian markets, investors directed their focus towards higher levels, and the benchmark Nifty 50 pushed past 24,700 thanks to robust performances from industry giants such as Reliance Industries and key private banking shares.
Here are three stocks to trade today, as recommended by Raja Venkatraman of NeoTrader
DHAMPUR: Buy at CMP and on dips to ₹138, stop ₹132, target ₹165-173
SAREGAMA: Buy at CMP and on dips to ₹542, stop ₹525, target ₹615-630
INDIAMART: Buy above ₹2,440 and on dips to ₹2,380, stop ₹2,360, target ₹2,590-2,660
Stock market on 5 June
Sensex gained 443.79 points (0.55%) to close at 81,442.04, while Nifty added 130.70 points (0.53%) to settle at 24,750.90. The rally extended beyond blue chips. The BSE Midcap index rose by 0.4%, and the BSE Smallcap index advanced by 0.65%. This broad-based uptrend reflects a market keen on capturing every opportunity in the build-up to the RBI monetary policy committee’s decision.
Outlook for trading
Volatility was the key feature of the market throughout the week and the market was whipped around quite a bit as global trends were the main drivers of sentiment. There really wasn’t much by way of local news flow to contain the volatility. The moves were also reasonably large, creating sufficient moves to bring people in – only to get knocked out the following day. Trading therefore was quite difficult through the week and few would have emerged unscathed.
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A strong decline at the start of the week did dent confidence but the recovery that emerged swiftly from lower levels is signalling that the highs will once again be challenged. Attempts continue to emerge as the market tries to carve out a bullish possibility.
As we head into the last trading day of the week, we could experience some profit-booking as we are not nearing an important inflexion zone. However, the trends are still circumspect and are witnessing limited market participation. Nifty now seeks to contest resistance around 25,000 while Nifty Bank aims to clear 56,000 to clear the air of uncertainty. Volatility is now part of the ever-changing market scenario as sentiment keeps changing. Risk management is critical as the lack of clarity is greater than ever.
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For Nifty to stage an upmove the spot needs to move above 24,800, which acts as a big hurdle for a bullish revival. With the open interest data clearly indicating a revival, one should keep tracking a 30-minute range breakout on Friday as this continues to be an important metric for creating some longs. As the indices are not showing much decline, one should look to encash some stock-specific action.
Three stocks to trade today, recommended by NeoTrader’s Raja Venkatraman
DHAMPUR (CMP: ₹150.54)
Buy at CMP and on dips to ₹138, stop ₹132, target ₹165-173
- Why it’s recommended: India’s sugar output is expected to rebound in 2025-26 to over 29.5 MT, driven by improved cane planting and favourable weather. This counter has been showing some improvement after a strong decline, with prices starting to bottom in March 2025. After a push above the clouds, we can see that the stock is set for a turnaround. Go long.
- Key metrics:
- P/E: 18.88
- 52-week high: ₹254
- Volume: 41.13M
- Technical analysis: Support at ₹115, resistance at ₹190
- Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns.
- Buy at: CMP and on dips to ₹138
- Target price: ₹165-173 in one month.
- Stop loss: ₹132
SAREGAMA (CMP ₹579.90)
Buy at CMP and on dips to ₹542, stop ₹525, target ₹615-630
- Why it’s recommended: SAREGAMA posted strong Q4 numbers, indicating that the trends in this counter seem poised for some positive traction. Prices have been moving in oscillation, forming a V-shaped recovery and the recent move out of the consolidation augurs well. Can look to go long.
- Key metrics:
- P/E: 54.98
- 52-week high: ₹688.50
- Volume: 821.38K
- Technical analysis: Support at ₹460, resistance at ₹680
- Risk factors: Competition from streaming platforms and changing consumer preferences
- Buy at: CMP and on dips to ₹542
- Target price: ₹615-630 in one month
- Stop loss: ₹525
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INDIAMART (CMP ₹2,437.80)
Buy above ₹2,440 and on dips to ₹2,380, stop ₹2,360, target ₹2,590-2,660
- Why it’s recommended: The counter has been under intense selling pressure for more than eight months. It hit a consolidation zone at the start of the year when the selling reduced to stage a strong cloud breakout, indicating that a turnaround is emerging. With a strong closing on Thursday, we can expect some positive vibes to emerge.
- Key metrics:
- P/E: 24.08
- 52-week high: ₹3,198.95
- Volume: 150.72K
- Technical analysis: Support at ₹1,970, resistance at ₹2,675
- Risk factors: Supplier retention and potential customer acquisition challenges.
- Buy: above ₹2,440 and on dips to ₹2,380
- Target price: ₹2,590-2,660 in one month.
- Stop loss: ₹2,360
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.
