Two stock recommendations for today, 9 June, by MarketSmith India:
KEI Industries Ltd (current price: 3747.8)
Why it’s recommended: Strong market position, diversified revenue streams, strong product portfolio, and innovation
Key metrics: P/E: 49.96 | 52-week high: ₹5,039.70 | Volume: ₹158.97 crore
Technical analysis: Reclaimed 200 EMA
Risk factors: Raw material price fluctuations, competitive pressure
Buy at: ₹3,747.8
Target price: ₹4,290 in three months
Stop loss: ₹3,490
Bajaj Housing Finance (current price: ₹125.66)
Why it’s recommended: Strong market position, strong financial performance
Key metrics: P/E: 174.44, 52-week high: ₹ 188.50, volume: ₹ 262.89 crore
Technical analysis: Reclaimed 100-EMA
Risk factors: Interest rate risk, regulatory risks, macro-economic risks
Buy at: ₹125.66
Target price: ₹150 in three months
Stop loss: ₹115
Nifty 50: How the benchmark index performed on 6 June
On Friday, the Nifty 50 opened on a subdued note and witnessed volatility during the initial hour of trade. However, sentiment improved significantly following the RBI policy announcement, propelling the index past 25,000 intraday. The day’s price action resulted in the formation of a strong bullish candlestick on the daily chart, with the index closing near the session’s high. All major sectoral and broader market indices ended in positive territory. Notably, Nifty Realty, Metal, Banking & Financials, and Auto sectors outperformed, while Pharma, Energy, and FMCG lagged. The broader market participation remained robust, with the advance-decline ratio improving to 4:3, reflecting a healthy market breadth.
From a technical perspective, the Nifty 50 is now trading above all its key moving averages across multiple timeframes, indicating underlying strength. The relative strength index (RSI) has turned upward and is currently hovering near 60, reflecting improving momentum. However, the MACD continues to display a negative crossover and has yet to confirm a sustained bullish trend. On a positional basis, a golden crossover, where the 50-DMA crosses above the 200-DMA, has occurred on the daily chart, signalling a potential resurgence of medium- to long-term bullish momentum.
As per O’Neil’s methodology of market direction, the market status has been downgraded to “Uptrend Under Pressure” from “Confirmed Uptrend” on 4 June.
The Nifty 50 ended the session around 25,000 with a positive bias. However, for the index to exhibit further bullish strength, a sustained breakout and close above 25,200 is essential. Post-RBI policy announcement, overall market sentiment has turned positive, thereby increasing the likelihood of a near-term breakout. A decisive move above 25,200 could accelerate the upward momentum, potentially driving the index toward 25,700–25,800 in the coming weeks. On the downside, immediate support is placed near 24,500.
How did the Nifty Bank perform yesterday?
On Friday, the Nifty Bank decisively broke above 56,000, following the RBI policy announcement, after consolidating for five consecutive weeks. The index closed near the day’s high in uncharted territory, registering a gain of 1.47% and forming a strong bullish candlestick on the daily chart. Additionally, a breakout above an ascending triangle pattern on the daily timeframe was observed, supported by robust price and volume action. On a weekly basis, the index advanced approximately 1.48% and formed a bullish candlestick, reinforcing the positive momentum.
From a technical standpoint, the index is now trading above all its key moving averages across multiple timeframes, supported by strong positive momentum. The daily and weekly relative strength index (RSI) are trending upward, reflecting strengthening buying interest. Notably, the MACD has formed a positive crossover on the weekly chart, reinforcing the bullish trend. However, on the daily timeframe, the MACD continues to exhibit a negative crossover and would need to turn positive to confirm short-term strength. Additionally, the ADX/DMI indicator on the weekly chart also signals a firm bullish trend, further validating the upward bias.
According to O’Neil’s methodology market direction, the Nifty Bank has recently transitioned from an “Uptrend Under Pressure” to a more constructive phase of a “Confirmed Uptrend,” highlighting renewed strength and resilience in the broader trend.
The index is currently trading with a positive bias across multiple timeframes and is now navigating uncharted territory. As long as it remains above 56,000, the overall outlook remains positive. The recent breakout indicates potential for the index to advance toward 58,500–59,000 in the near term. Conversely, a breach below 56,000 could lead to a phase of sideways consolidation. Notably, the RBI’s recent policy measures have had a significant positive impact on the sector, and it is likely to remain buoyant in the coming weeks.
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, developed 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.
