MarketSmith India’s top picks for 3 June

The Nifty 50 ended down 0.14% at 24,716, recovering 189 points from the day’s low. The Sensex also clawed back from early losses to finish 77 points, or 0.09%, lower at 81,373.

Two stock recommendations for today, 3 June, by MarketSmith India: 

Buy: Excel Industries Ltd. (current price: ₹1,218.80)

Why it’s recommended: Diverse product portfolio across high-growth sectors, strong legacy, and indigenous innovation.

Key metrics: P/E: 17.02, 52-week high: ₹ 1,760.00, volume: ₹ 4.92 crore

Technical analysis: Trendline breakout

Risk factors: High dependency on agrochemical sector, raw material price volatility

Buy at: ₹ 1,218.80

Target price: ₹ 1,450 in three months

Stop loss: ₹ 1,110

Why it’s recommended: Strong focus on underserved markets, diversified loan book.

Key metrics: P/E: 24.51, 52-week high: ₹ 810, volume: ₹ 459.59 crore

Technical analysis: bullish flag pattern breakout

Risk factors: Geographical concentration risk, asset quality risks in MSME and vehicle finance

Buy at: ₹ 718

Target price: ₹ 790 in three months

Stop loss: ₹ 690 

Nifty 50: How the benchmark index performed on 2 June

The Nifty 50 opened the June series with a gap-down start at 24,670 and slipped below its 21-day moving average (DMA) in early trade, retesting the intraday low of 24,526. However, the index staged a steady recovery through the session, reclaiming the 21-DMA and closing above 24,700. The day’s price action formed a green candlestick with a long lower shadow—a lower high and lower low structure—reflecting intraday volatility but also buying interest at lower levels.

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Most sectoral indices ended in the green, except for IT, Metal, and Pharma. The advance-decline ratio hovered around 1:1, pointing to a neutral, indecisive market breadth.

Technically, Nifty continues to trade above its key moving averages across multiple timeframes, although it remains locked in a broad consolidation zone of 24,400–25,200. The daily RSI has flattened but remains in bullish territory, indicating underlying strength. However, the MACD has turned negative on the daily chart, suggesting the potential for near-term consolidation despite the prevailing uptrend.

According to O’Neil’s methodology, the index has shifted from a “Rally Attempt” to a “Confirmed Uptrend.” Yet, sustained trading below the 21-DMA would be a cause for concern, reinforcing a sideways-to-bearish bias in the short term. Immediate support lies between 24,400 and 24,500, while resistance is expected around 25,000 to 25,200.

Bank Nifty’s performance on 2 June

On Monday, 2 June, the Bank Nifty index opened at 55,598.25, slipped to an intraday low of 55,400.55, and climbed to a high of 55,966.30 before settling at 55,903.40—up 0.28% for the day. The index continues to trade within a narrow consolidation band near its record highs, maintaining a positive bias. Importantly, it remains above all key moving averages, underscoring strength in its medium-term trend.

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Momentum indicators paint a mixed picture. The RSI is trending upward and currently stands at 63, indicating strengthening bullish sentiment. However, the MACD still reflects a negative crossover, suggesting some caution is warranted despite the upward drift in prices.

According to O’Neil’s market direction framework, Bank Nifty has moved from an “Uptrend Under Pressure” to a more constructive “Confirmed Uptrend,” signalling renewed resilience in the broader trend.

The index is currently consolidating just below the 56,000 mark, which is acting as a key resistance level. A clear breakout and sustained close above this level would confirm a resumption of bullish momentum and could set the stage for a move toward 57,500–58,000. Until then, the index is likely to remain range-bound. On the downside, immediate support is seen near 55,000, with a stronger base around 54,500.

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The short-term outlook remains constructive. A sustained breakout above 56,000 would confirm bullish continuation and could pave the way for an upside move toward 57,500–58,800. On the downside, immediate support is seen around 54,500, which may serve as a near-term cushion.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi 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.

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