Bajaj Broking Analyst Recommends Five Stocks for Short-Term Gains

Market Outlook Dims as Geopolitical Tensions Persist

The Indian stock market, represented by the benchmark indices Sensex and Nifty 50, has been trading in a range in May and ended lower by 2% amid persistent geopolitical tensions, higher crude oil prices, rising inflation, and a sharp depreciation in the Indian rupee. The index has started the month of June on a weak note, testing the low of May (23,262), amidst persistent FII outflows and geopolitical tension continuing to weigh on sentiment.

According to Pabitro Mukherjee, Deputy Vice President - Technical at Bajaj Broking, the Nifty 50 has formed a small bearish candle with shadows in either direction on the monthly chart, remaining contained inside the previous month's high-low range, signaling consolidation after last month's strong pullback amidst stock-specific action. The index is likely to extend consolidation and trade in the broad range of 22,200-24,500.

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Pabitro Mukherjee recommends buying the following five stocks for the next six months:

Kotak Mahindra Bank

Mukherjee highlighted that Kotak Mahindra Bank stock is seen rebounding after a base formation at the key support range of ₹350-₹360, being the confluence of the 200-week EMA (which has historically acted as a strong support) and the 61.8% retracement of the entire previous rally from ₹309 to ₹460. Buying demand at the key support area signals strength and offers a fresh entry opportunity with a favorable risk-reward set-up. Mukherjee expects the stock to resume its upward move and gradually head towards the ₹440 mark in the coming months, being the confluence of the high of January 2026 and 80% retracement of the previous entire decline from ₹460 to ₹346.

Eternal

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Mukherjee said Eternal is currently testing the upper band of the recent falling trendline breakout area connecting the highs of February and April 2026, indicating strength and creating a favorable entry opportunity. The stock is placed at its 50-day EMA, which supports the positive bias in the stock. Mukherjee expects the stock to move towards the ₹290 level over the coming months, which represents the 50% retracement of the entire decline from ₹368 to ₹213. Adding to the bullish setup, the daily MACD has given a buy signal by crossing above its 9-period average, suggesting improving momentum and supporting the positive bias in the stock.

Allied Blenders and Distillers

According to Mukherjee, buying demand is seen emerging after a base at the 200-day EMA and the previous major breakout area, thus offering a fresh entry opportunity. Key observation in the daily chart is that it has recently generated a golden crossover of the 50 and 200-day EMAs. With 50 days EMA crossing the 200-day EMA from below, highlighting positive bias. Mukherjee expects Allied Blenders stock to head towards ₹622, being the key retracement of the previous major decline and the trendline resistance joining the previous highs of February, April, and May 2026.

Jayaswal Neco Industries

Mukherjee underscored that Jayaswal Neco Industries is approaching the major rounding breakout area after the last four weeks' corrective decline, thus offering a fresh entry opportunity. The stock is forming a base around the support area of ₹95 and ₹100, being the confluence of the 50-day EMA and the 38.2% retracement of the previous rally from ₹69 to ₹117. Mukherjee expects the stock to resume up move and head towards the previous all-time highs of ₹117. On the downside, the next significant support is placed at the 50% Fibonacci retracement level of ₹89. Weekly MACD is in an uptrend and is seen sustaining above its nine-period average, thus validating a positive bias in the stock.

Garden Reach Shipbuilders & Engineers

According to Mukherjee, Garden Reach Shipbuilders is in an overall strong uptrend, forming higher highs and higher lows in the long-term chart. The last four weeks' corrective decline offers a fresh entry opportunity with a favorable risk-reward profile. Mukherjee highlighted that the stock is currently forming base around the key demand zone of ₹2520 and ₹2600, which marks a confluence of multiple technical factors supporting a potential reversal, such as 61.8% retracement of the previous rally of April 2026 from ₹1,964 to ₹3,339, 200-day EMA placed around ₹2,570, previous major trendline breakout area joining the highs of June 2025 (₹3,538) and February 2026 (₹2,844) is placed around ₹2,550 levels which is likely to reverse its role and act as support in the medium term as per change of polarity concept.