India’s stock market wrapped up last week on a high, posting nearly a 1% gain thanks to positive domestic developments. Initially, caution prevailed as investors awaited the Monetary Policy Committee’s (MPC) decision. However, a pleasant surprise—a 50-basis point cut in the repo rate and a staggered 100-basis point reduction in the cash reserve ratio—swiftly shifted sentiment. This led to a significant upward surge, after which the market stabilized for the rest of the day. Ultimately, the Nifty 50 index closed near its daily high at 25,003.05.
Here are three stocks to buy or sell today, as recommended by Raja Venkatraman of NeoTrader for Monday, 9 June.
Best stocks to buy today
POLYCAB: Buy CMP and dips to ₹6,000 | Stop: ₹5,950 | Target: ₹6,525-6,700
BORORENEW: Buy CMP and dips to ₹542 | Stop: ₹525 | Target: ₹615-630
DALBHARAT: Buy above ₹2,120 and dips to ₹2,090 | Stop: ₹2,070 | Target: ₹2,250-2,325
The stock market on Friday
The market rally on 6 June was broad-based, with all major sectors contributing. Rate-sensitive sectors like realty, financials, and auto were the biggest beneficiaries, with other sectors also performing well. Broader market indices also extended their gains, rising between 0.8% and 1.2%.
While the Nifty 50 is still in a consolidation phase, the renewed vigor in rate-sensitive sectors, especially the breakout in the banking index, has reignited hopes for a sustained upward trend. A definitive break above 25,200 on the Nifty could initiate the next leg of the rally, potentially propelling the index towards 25,600.
Looking ahead, the impact of the recent rate cut is expected to continue driving market sentiment. The rate-sensitive segments, along with specific themes like railways, are likely to remain in the spotlight, with other sectors contributing in a rotational manner.
Outlook for trading
Finally, after some huffing and puffing, the Nifty 50 managed to crack through the resistance at 25,000 and powered its way higher by Friday. In between, there were some intraday fulminations but the bulls managed to hold the wheel and did not allow the trend to go off the road. Matters were helped in the last week when the best efforts by the bears were held at abeyance over three successive sessions, with Doji type candle formations. When such a pattern gave way to a bullish candle starting on Monday, the stage was set for more gains.
Results flow has been good for the fourth quarter, and some heavyweights came out with Street-beating numbers, which has kept the sentiment juices flowing rather nicely. In addition, activity in the mid- and small-cap segments has also been good. With the threat of the Trump tariffs now receding with no real clarity, the market has one less item to worry about. The Reserve Bank of India’s policy was the turning point last week. On Friday, the RBI Governor went beyond anticipation to give a 50 basis point repo rate cut and 100 bps CRR cut to bolster the banking and financials sectors.
Bank Nifty compared to Nifty has fared well and would give us more than fair evidence of continued bullish play to emerge next week, however on dips. Considering the pointers, one should look to buy at lower levels in the indices. The sharp rise in trends on Friday beyond the much-touted resistances at 25,000 has given us some opportunity to look for some opportunities in Nifty now. Trading has been quite challenging as the movements are happening in spurts hence it’s best to trade with suitable stop loss. Applying a fair amount of discretion shall enable us to profit from the volatility that shall continue, as we are now witnessing some positive vibes against the backdrop of a pensive global scenario.
Best stocks to buy today, recommended by NeoTrader’s Raja Venkatraman
POLYCAB (Cmp ₹6,108.50)
POLYCAB: Buy CMP and dips to ₹6,000 | Stop: ₹5,950 | Target: ₹6,525-6,700
- Why POLYCAB is recommended: With about 25% organized market share, Polycab leads the domestic C&W market. The company is present in both cables (65% of the sales mix) and wires (25-30% of the mix).However, Jefferies feels that the stock will not face major headwinds as it already has an established presence and the new competition will take time to impact the revenues. This has led to a double bottom formation and a gradual ascent to the top . With prices holding firm at the TS line we can consider going long.
- Key metrics
- P/E: 45.90
- 52-week high: ₹7,607.15
- Volume: 319.43K
- Technical analysis: Support at ₹4,950; resistance at ₹6,950
- Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
- Buy at: CMP and dips to ₹6,000
- Target price: ₹6,525-6,700 in 1 month
- Stop-loss: ₹5,950
BORORENEW (Cmp ₹569.50)
BORORENEW: Buy CMP and dips to ₹542 | Stop: ₹525 | Target: ₹615-630
- Why BORORENEW is recommended: BORORENEW posted weak Q4 numbers, indicating that the trends are under pressure. However, with the nature of the prices seen in the last few days we can comprehend that the newsflow has already been priced in. The volatile moves seen in the last 3 months are now seen giving up, indicating a possibility of some upward bounce as a V-U pattern is seen forming with volumes. Can look to go long.
- Key metrics
- P/E: 225.05
- 52-week high: ₹644
- Volume: 540.20K
- Technical analysis: Support at ₹460; resistance at ₹680
- Risk factors: Competition from streaming platforms and changing consumer preferences
- Buy at: CMP and dips to ₹542
- Target price: ₹615-630 in 1 month
- Stop-loss: ₹525
DALBHARAT (Cmp ₹2,116.20)
DALBHARAT: Buy above ₹2,120 and dips to ₹2,090 | Stop: ₹2,070 | Target: ₹2,250-2,325
- Why DALBHARAT is recommended: The counter has been consolidating around the TS & KS Bands for the past few days. After a brief decline the stocks managed to gather support within the bands and produce a turnaround. After the recent test of the TS & KS bands and a strong closing on Friday we can look at some positive vibes to emerge.
- Key metrics
- P/E: 208.50
- 52-week high: ₹2,166.70
- Volume: 105.72K
- Technical analysis: Support at ₹2,050; resistance at ₹2,250
- Risk factors: Supplier retention and potential customer acquisition challenges
- Buy at: Above ₹2,120 and dips to ₹2,090
- Target price: ₹2,250-2,325 in 1 month
- Stop-loss: ₹2,070
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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 guarantees 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.
