Two stock recommendations for today, 2 June, by MarketSmith India:
APAR Industries Ltd (current price: 8,114)
Why it’s recommended: Consistent financial growth, diverse business segments
Key metrics: P/E: 39.13 | 52-week high: ₹11,779.90 | Volume: ₹ 59.71 crore
Technical analysis: Trendline breakout
Risk factors: Raw material price volatility, cyclicality of end-user industries
Buy at: ₹8,114
Target price: ₹9,450 in three months
Stop loss: ₹7,420
ITC Hotels Ltd (current price: ₹216.50)
Why it’s recommended: Strong post-demerger performance, asset-light expansion strategy.
Key metrics: P/E: 169.76 | 52-week high: ₹ 223 | Volume: ₹224.78 crore
Technical analysis: Retest of trendline breakout
Risk factors: Cyclical nature of the hospitality industry, intense competition
Buy at: ₹216.50
Target price: ₹255 in three months
Stop loss: ₹199
Nifty 50: How the benchmark index performed on 29 May
On Friday, the Nifty 50 opened on a muted note and traded with volatility throughout the session, ending the day with a loss of approximately 0.33%. It formed a small bearish candlestick on the daily chart. Barring the Nifty Bank, all major sectoral indices closed flat to negative. Nifty Metal, IT, Pharma, and FMCG underperformed notably. The advance-decline ratio remained near 1:1, reflecting broad-based market indecision.
On a weekly basis, the index remained volatile and posted losses for the second consecutive week. However, on a monthly scale, it registered gains and formed a bullish candle for the third straight month. Barring FMCG and Pharma, all major sectoral and broader market indices closed in positive territory on a monthly closing basis.
The index continues to trade above all its key moving averages across multiple timeframes. However, it has been consolidating within a broad range of 24,400–25,200 over the past few weeks. Both the daily and weekly RSI have recently flattened but continue to follow a bullish trajectory. Meanwhile, the MACD, a trend-following indicator, is trending upward on the weekly chart. However, it has shown a negative crossover on the daily timeframe, suggesting the possibility of continued short-term consolidation in the market.
According to O’Neil’s methodology of market direction, Nifty50 transitioned from a “Rally Attempt” to a “Confirmed Uptrend.”
The Nifty 50 has been facing strong resistance in 25,000–25,200 over the past few weeks, which coincides with a previously established supply area. This has led to a period of sideways consolidation. Recent price action indicates that a decisive breakout and sustained move above this resistance range is essential to confirm the continuation of the bullish trend. In the absence of such a breakout, the index is likely to remain range-bound in the near term. On the downside, key support levels are placed at 24,600, followed by 24,400.
How did the Nifty Bank perform yesterday?
On Friday, the Nifty Bank sustained its bullish momentum throughout the session, forming a bullish candlestick on the daily chart, marked by a higher-high and higher-low price structure. The index consistently traded above all its key moving averages, reflecting strong underlying strength. It opened at 55,615.55, moved within a range of 55,356.60–55,813.30, and eventually settled at 55,749.70.
On a weekly basis, the Nifty Bank exhibited sustained bullish momentum, recording three consecutive bullish candles characterized by higher-high and higher-low. Similarly, on the monthly timeframe, the index advanced approximately 1.2% in May, forming a third consecutive bullish candle and closing near its all-time high.
Technically, the index continues to trade above all its key moving averages and has closed near its all-time high across multiple timeframes. Momentum indicators, RSI and MACD, are trending positively on most timeframes, although the daily MACD is exhibiting a negative crossover, indicating some short-term consolidation.
According to O’Neil’s methodology of market direction, the Nifty Bank transitioned from an “Uptrend Under Pressure” to a “Confirmed Uptrend”.
The Nifty Bank is currently consolidating near its all-time high, encountering resistance around 56,000. A sustained move and close above this resistance is essential to reinforce bullish momentum in the coming sessions. In the absence of such a breakout, the index is likely to continue its consolidation phase. If the breakout occurs, it could potentially advance toward 57,500–58,000. On the downside, immediate support is seen around 55,000, with a secondary support level near 54,500.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market.
Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst 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.
