Top Stock Picks for June 3: Adani Ports, Power Grid, and Tata Steel

Buy or Sell: Sumeet Bagadia’s Top Stock Picks for Monday, June 3

As investors adjusted their portfolios in anticipation of next week’s national elections, India's domestic benchmark indices experienced fluctuations on Friday. The Nifty 50 and the Sensex wavered between gains and losses, eventually closing marginally higher. The S&P BSE Sensex rose by 0.1% to 73,961 points, while the NSE Nifty 50 ended the day up 0.2% at 22,531 points.

Market Overview

On June 1, India's weeks-long election campaign ended, and votes are set to be tallied on June 4. Investors are keenly awaiting the exit polls, which are expected to forecast the election results. Meanwhile, the Controller General of Accounts (CGA) reported that the government’s budget deficit for 2023-24 was 5.63% of GDP, better than the 5.8% predicted in the Union Budget. The fiscal deficit amounted to Rs 16.53 lakh crore.

Vinod Nair, Head of Research at Geojit Financial Services, noted that investors are realigning their portfolios to align with fundamentally strong sectors and stocks. He cited robust Q4 FY24 earnings and better-than-expected GDP growth as factors providing valuation buffers in the medium term. However, weak global cues and higher core inflation in the Eurozone may lead the European Central Bank (ECB) to maintain current interest rates.

Stocks to Buy on Monday, June 3

Adani Ports and Special Economic Zone Ltd

• Current Trading Price:₹1,437.40

• Target Price:₹1,600

• Support Levels: ₹1,375

• Stop-Loss: ₹1,375

• Relative Strength Index (RSI): 62 (upward trend)

Adani Ports has formed a higher high, higher low pattern on the daily chart with increased trading volume, indicating a potential breakout. If the stock closes above ₹1,450, it could reach a short-term target of ₹1,600. Investors should consider buying on dips at the support level of ₹1,375 and set a stop-loss at the same level to manage risk.

Power Grid Corporation of India Ltd

• Current Trading Price:₹310

• Target Price:₹350

• Support Levels:₹304

• Stop-Loss: ₹304

• Relative Strength Index (RSI): 52 (upward trend)

Power Grid Corporation has also formed a higher high, higher low pattern on the daily chart, suggesting a potential breakout. If the stock closes above ₹320, it could reach a short-term target of ₹350. Investors should consider buying on dips at the support level of ₹304 and set a stop-loss at the same level to manage risk.

Tata Steel Ltd

• Current Trading Price: ₹167.20

• Target Price: ₹188

• Support Levels: ₹163.30, ₹155

• Stop-Loss: ₹155

Tata Steel has experienced profit booking from its all-time high of ₹177.70 and currently finds strong support near ₹163.30, which aligns with its 50-day Exponential Moving Average (EMA). For new investors, a breakout above ₹172 could push the stock towards ₹180 and ₹188. If the stock breaks below ₹163.30, it may correct further to ₹155. Setting a stop-loss at ₹155 is advised to protect investments from unexpected market reversals.

In Conclusion, The recommended stocks—Adani Ports, Power Grid Corporation, and Tata Steel—show promising technical patterns and potential for short-term gains. However, investors should exercise prudent risk management by setting appropriate stop-loss levels.

Disclaimer: The views and recommendations in this article are those of individual analysts and do not represent the views of FinBrook. Investors are advised to consult with certified experts before making any investment decisions.