Regarding stocks to buy on Monday, Sumeet Bagadia recommended three shares: Adani Ports and Special Economic Zone Ltd, Power Grid Corporation of India Ltd, and Tata Steel Ltd.
As investors adjusted their strategies in anticipation of the upcoming national elections, the domestic benchmark indices, the Nifty 50 and the Sensex, fluctuated between gains and losses on Friday. They ended the day with slight increases but registered their first weekly decline in three weeks.
The S&P BSE Sensex increased by 0.1% to reach 73,961 points, and the NSE Nifty 50 closed the day up by 0.2% at 22,531 points. Earlier in the trading session, both benchmarks had risen by as much as 0.7% before relinquishing those gains.
Additionally, figures released by the Controller General of Accounts (CGA) on Friday, May 31, revealed that the government’s budget deficit for 2023–24 was 5.63% of GDP, which is slightly better than the 5.8% projected in the Union Budget. The actual fiscal deficit, which represents the gap between revenue and spending, stood at Rs 16.53 lakh crore.
“Investors are adjusting their portfolios to align with fundamentally strong sectors and stocks. Robust Q4 FY24 earnings and better-than-expected Q4 FY24 GDP growth will continue to support valuations in the medium term. However, weak global cues have dampened market sentiment, and higher core inflation in the Eurozone may prompt the ECB to maintain current interest rates.
The short-term market direction will depend on the general election results. However, major economic indicators such as the RBI policy, PMI data, and auto sales numbers will offer investors a broader perspective on the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
Stocks to buy on Monday, June 3
Regarding stocks to buy on Monday, Sumeet Bagadia recommended three shares: Adani Ports and Special Economic Zone Ltd, Power Grid Corporation of India Ltd, and Tata Steel Ltd.
Adani Ports and Special Economic Zone Ltd
Adani Ports is currently trading at ₹1,437.40. Their share has recently formed a higher high higher low pattern on the daily chart with a significant increase in trading volume, suggesting a potential breakout. If the price closes above ₹1,450, it could reach short-term targets of ₹1,600. Immediate support is at ₹1,375, which can be considered as a buying opportunity on dips.
The Relative Strength Index (RSI) is at 62 and trending upward, indicating increasing buying momentum.
To manage risk, it is advisable to set a stop-loss (SL) at ₹1,375. This will help protect your investment in case of an unexpected market reversal. In summary, based on technical analysis and current market conditions, Adani Ports appears to be an attractive buying opportunity for those targeting a ₹1,600 price, provided appropriate risk management measures are taken.
Power Grid Corporation of India Ltd
Power Grid Corporation of India is currently trading at ₹310. Their share 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 closes above ₹320, it may reach short-term targets of ₹350. Immediate support is at ₹304, which can be considered as a buying opportunity on dips.
The Relative Strength Index (RSI) is at 52 and trending upward, indicating increasing buying momentum.
To manage risk, it is advisable to set a stop-loss (SL) at ₹304. This will help protect your investment in case of an unexpected market reversal. In summary, based on technical analysis and current market conditions, Power Grid Corporation of India appears to be an attractive buying opportunity for those targeting a ₹350 price, provided appropriate risk management measures are taken.
Tata Steel Ltd
Tata Steel is currently trading at ₹167.2, having experienced profit booking from its all-time high of ₹177.7. The stock finds strong support near ₹163.3, closely aligned with its 50-day Exponential Moving Average (EMA), 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 close to its short-term (20-day) EMA levels.
For investors considering a 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 ₹180 and ₹188. Conversely, if the stock falls below the support level of ₹163.3, it may further correct towards ₹155.
To manage risk, it is advisable to set a stop-loss (SL) at ₹155. This will help protect your investment in case of an unexpected market reversal. In summary, based on technical analysis and current market conditions, Tata Steel appears to be an attractive buying opportunity for those targeting a ₹188 price, provided appropriate risk management measures are taken.
