Low-Value Stocks to Consider: Sumeet Bagadia Recommends Three Undervalued Shares

Indian Stock Market Suffers Losses Amid RBI's Monetary Policy Decision

The Indian benchmark indices, Sensex and Nifty 50, closed lower on Friday, 5 June, following the Reserve Bank of India's (RBI) latest monetary policy decision. The RBI's announcement included a downward revision to economic growth forecasts and a higher inflation outlook for FY27, prompting investors to book profits.

The Sensex declined 116.67 points, or 0.16%, to settle at 74,243.34, after swinging 728 points during the session between an intraday high of 74,717.57 and a low of 73,988.75. The Nifty 50 slipped 49.85 points, or 0.21%, to close at 23,366.70. Market sentiment was also weighed down by persistent foreign fund outflows, geopolitical uncertainties, and weakness across broader Asian markets.

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The RBI kept the repo rate unchanged at 5.25% and retained its neutral stance. However, the central bank revised its FY27 real GDP growth forecast lower to 6.6%, compared with 6.9% projected in April and below the estimated 7.6% growth for FY26. At the same time, the RBI raised its FY27 inflation forecast to 5.1%, warning that price pressures could intensify in the coming quarters.

Market experts believe that the combination of slower growth expectations and a higher inflation outlook prompted cautious sentiment among investors, leading to profit-taking across sectors. Sumeet Bagadia, Executive Director at Choice Broking, noted that the Nifty 50 opened with a gap-up of 62.40 points at 23,478.95, reflecting positive sentiment at the start of the session. However, the initial optimism failed to sustain as selling pressure gradually emerged, particularly during the second half of the session.

From a technical perspective, immediate support is in the 23,200–23,250 range, while resistance is observed between 23,650 and 23,700. The Relative Strength Index (RSI) stands at 40.64, indicating weakening momentum and suggesting that the index continues to trade below the stronger bullish zone.

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In the derivatives segment, notable call writing was seen at the 23,500 strike, followed by 23,600, while significant put writing was observed at 23,300 and 23,400 levels, indicating immediate support near lower levels while resistance remains positioned around higher strikes.

The Bank Nifty index opened with a gap-up of 97.35 points at 54,405.20, indicating positive sentiment in the banking space at the opening bell. However, profit-taking emerged thereafter, resulting in selling pressure that dragged the index to its intraday low of 54,140.60 during the second half. Buying interest reappeared near lower levels, helping the index recover a large part of its losses and eventually settle at 54,496.25, gaining 188.40 points or 0.35% for the session.

Sumeet Bagadia has recommended three stocks to buy on Monday, 8 June: Motherson Sumi Wiring India Ltd, Bhansali Engineering Polymers Ltd, and Confidence Petroleum India Ltd.

• Buy Motherson Sumi Wiring India in cash at ₹38.58; SL at ₹37; target at ₹41.50
• Buy Bhansali Engineering Polymers in cash at ₹96.86; SL at ₹92.40; target at ₹105
• Buy Confidence Petroleum India in cash at ₹77.61; SL at ₹73.30; target at ₹85.30