Top three stocks recommended by Ankush Bajaj for 2 June:
HDFC Bank Ltd (current price: ₹1945)
Why it’s recommended: The stock has shown a strong rebound from support levels and, on the lower time frame, has given a consolidation breakout, which indicates the start of a new trend and suggests a potential for further upside.
Key metrics: Resistance level: ₹1,975 (short-term target) | Support level: ₹1,924 (pattern invalidation level)
Pattern: Consolidation breakout on lower timeframe with sustained price action
RSI: Bullish on both daily and lower timeframes, confirming strength in the breakout
Technical analysis: The breakout from the consolidation zone on lower timeframes, combined with improving RSI and price strength, points to a continuation of the bullish trend. Sustaining above ₹1,945 increases the probability of achieving the projected target.
Risk factors: A breakdown below ₹1,924 could invalidate the bullish breakout. Broader market corrections or sector-specific weakness may also affect price action.
Buy at: ₹1,945
Target price: ₹1,975 in 4–5 days
Stop loss: ₹1,924
Tata Steel Ltd (current price: ₹161)
Why it’s recommended: The stock is in an uptrend and is currently trading at a major demand zone between ₹161– ₹158. A bounce back is expected from this level, suggesting a potential for further upside.
Key metrics: Resistance level: ₹167– ₹171 (short-term target zone) | Support level: ₹158 (pattern invalidation level)
Pattern: Pullback setup from demand zone in ongoing uptrend
RSI: Bullish reversal expected from oversold zone on lower time frames, indicating early signs of strength
Technical analysis: The stock is approaching a key support area within an ongoing uptrend. The confluence of the demand zone and oversold RSI on lower timeframes increases the likelihood of a bounce toward ₹167– ₹171.
Risk factors: A breakdown below ₹158 could invalidate the bullish setup. Broader market weakness or unexpected sector pressure could affect price movement.
Buy at: ₹161
Target price: ₹167– ₹171 in 4–5 days
Stop loss: ₹158
Union Bank Ltd (current price: ₹146.80)
Why it’s recommended: The stock is showing strength in an ongoing uptrend and has taken support near ₹145 levels. On the lower time frame, it is forming a bullish structure, indicating the potential for a quick upward move.
Key metrics: Resistance level: ₹151– ₹153 (short-term target zone) | Support level: ₹144 (pattern invalidation level)
Pattern: Support-based entry in bullish continuation setup
RSI: Bullish on lower timeframes with rising momentum, supporting the price action
Technical analysis: Union Bank has maintained higher lows and is showing signs of fresh momentum from the support zone. Sustaining above ₹146.80 may trigger a move toward the ₹151– ₹153 zone.
Risk factors: A breakdown below ₹144 could negate the bullish view. Broader market volatility or sector rotation could limit upside.
Buy at: ₹146.80
Target price: ₹151– ₹153 in 4–5 days
Stop loss: ₹144
Market wrap
The Nifty 50 ended 82.90 points lower, down 0.33%, at 24,750.70 on 30 May. The BSE Sensex fell by 182.01 points or 0.22% to close at 81,451.01. The Bank Nifty managed to recover slightly and closed 203.65 points higher, up 0.37%, at 55,749.70.
Among sectors, PSU Banks stood out with a gain of 2.88%, followed by the banking index up 0.37% and the finance index, which rose 0.08%. On the other hand, metal stocks were under pressure, with the index falling 1.69%. The PSE index was down 1.14%, while the auto index slipped 0.98%.
In stock action, Eternal jumped 4.35% as buyers remained active. SBI gained 1.87% on continued strength in the banking space. HDFC Bank also moved up 0.90% due to positive sentiment around large private lenders.
Among the top losers, Bajaj Auto declined 3.01% as investors booked profits. Hindalco fell 2.54% amid weakness in metals. Shriram Finance dropped 1.98% following recent gains.
Nifty technical analysis: Daily & hourly
The Nifty experienced another day of consolidation, ending in the red with a loss of 83 points. On the daily charts, it has been trading within a narrow range of 24,500 to 25,000 for the past ten sessions.
The daily momentum indicator is steadily approaching the equilibrium line, indicating that this consolidation phase may be nearing its end and could soon give way to an upward move. The 20-day moving average at 24,692 is currently acting as a strong support level, and a breach below this could result in a decline towards 24,400. On the upside, the immediate resistance lies between 24,850 and 24,900, and a move above this zone could trigger a rally towards 25,100.
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From a technical standpoint, the Nifty is trading above both the 20-day moving average (24,692) and the 40-day exponential moving average (24,275). However, the daily momentum indicator has shown a negative crossover, suggesting some caution.
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On the hourly chart, the Nifty is trading below the 20-hour and 40-hour exponential moving averages, which are placed at 24,769 and 24,793, respectively. Interestingly, the momentum indicator on the hourly chart has shown a positive crossover.
Market breadth was negative for the day, with 1,300 stocks advancing and 1,597 declining on the National Stock Exchange.
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.
Registration granted by Sebi and certification from NISM in no way guarantee 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.
