Buy or sell stocks: As investors shifted their bets ahead of next week’s national elections, the domestic benchmark indices, the Nifty 50 and the Sensex, wavered between gains and losses on Friday, closing marginally higher but recording their first weekly decrease in three.
The S&P BSE Sensex rose by 0.1% to 73,961 points, while the NSE Nifty 50 finished the day up 0.2% at 22,531 points.Prior to giving up the gains, both benchmarks went up as much as 0.7% in early trading.
Today, June 1, marks the end of India’s weeks-long election campaign. On June 4, votes will be tallied. Following the conclusion of voting, investors await the exit polls, which forecast results.
Further, according to figures released by the Controller General of Accounts (CGA) on Friday, May 31, the government’s budget deficit for 2023–24 was 5.63% of GDP, which is somewhat better than the 5.8% predicted in the Union Budget. The real difference between revenue and spending, or the fiscal deficit, was Rs 16.53 lakh crore.
“Investors are adjusting their portfolios to align with fundamentally strong sectors and stocks, as robust Q4 FY24 earnings and better-than-expected Q4FY24 GDP growth will continue to provide a buffer on valuation in the medium term. Weak global cues have further dampened market sentiments, and higher core inflation in the Eurozone may lead the ECB to maintain the status quo on rates.
The short-term direction will hinge on the general election results. However, the release of major economic indicators such as RBI policy, PMI data, and auto sales numbers will provide investors with a more comprehensive perspective on the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
Stocks to buy on Monday — June 3
On stocks to buy on Monday, Sumeet Bagadia recommended three shares to buy on Monday — Adani Ports and Special Economic Zone Ltd, Power Grid Corporation of India Ltd, and Tata Steel Ltd.
Adani Ports and Special Economic Zone Ltd
The current trading price of Adani Ports is ₹1,437.40. The stock has recently formed a higher high higher low pattern on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the ₹1,450 level, it may have the potential to reach short-term targets of ₹1,600. On the other hand, immediate support levels are located at ₹1,375. These levels can be considered as opportunities to buy on dips.
The Relative Strength Index (RSI) currently stands at 62 and is trending upward, indicating increasing buying momentum.
To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹1,375. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, Adani Ports appears to present an appealing buying opportunity for those aiming for a ₹1,600 price target, provided that appropriate risk management measures are in place.
Power Grid Corporation of India Ltd
The current trading price of Power Grid Corporation of India is ₹310. The stock has recently formed a higher high higher low pattern on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the ₹320 level, it may have the potential to reach short-term targets of ₹350. On the other hand, immediate support levels are located at ₹304. These levels can be considered as opportunities to buy on dips.
The Relative Strength Index (RSI) currently stands at 52 and is trending upward, indicating increasing buying momentum.
To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹304. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, Power Grid Corporation of India appears to present an appealing buying opportunity for those aiming for a ₹350 price target, provided that appropriate risk management measures are in place.
Also Read: Weekend Wrap: From Jindal Stainless to Adani Power, top market movers this week
Tata Steel Ltd
Tata Steel is currently trading at 167.2 levels, having experienced profit booking from its all-time high of 177.7 The stock finds robust support near 163.3 levels aligned closely with its 50-day Exponential Moving Average (EMA) levels, indicating potential buying interest at these levels. However, investors holding the stock from lower levels are advised to book profits, as the stock is now trading near to its short-term (20 Day) EMA levels.
For investors considering fresh entry into Tata Steel, it is prudent to await a reversal in the stock’s price action. A breakout above ₹172 could propel the stock towards the ₹180 and ₹188 level. On the flip side In the event of a breakdown below the mentioned support of 163.3, the stock may witness further correction towards the 155 levels.
To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹155. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, Tata Steel appears to present an appealing buying opportunity for those aiming for a ₹188 price target, provided that appropriate risk management measures are in place.
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 taking any investment decisions.
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