MarketSmith Analyst Raja Venkatraman Identifies Five Stocks to Watch on June 3

Indian Equity Benchmarks Rebound on Tuesday

Indian equity benchmarks rebounded on Tuesday, 3 June, after four consecutive sessions of losses, supported by value buying at lower levels and continued strength in information technology stocks. The recovery comes after the market had fallen nearly 3% over the previous four trading sessions amid concerns over the Iran conflict and heavy foreign investor outflows.

The Nifty 50 rose 0.43% to close at 23,483.55, while the Sensex gained 0.52% to end at 74,649.84. Sentiment also improved after US President Donald Trump said negotiations with Iran were still ongoing, easing concerns triggered by reports that Tehran had suspended indirect talks with Washington.

Stocks to Buy Today

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According to Raja Venkatraman, Co-founder of NeoTrader and stock research platform MarketSmith India, the following five shares are recommended for buying:

Stock Analysis

1. Vijaya Diagnostic Centre Ltd Vijaya Diagnostic Centre Ltd is India's largest B2C-focused integrated diagnostic chain offering a wide array of pathology, radiology, and advanced imaging services. The stock had been recommended earlier as well in our article and it continues to perform quite robustly. The strong uptrend remains intact and despite some turbulence in the market the dips are used to buy into. As steady volume build-up is seen we can look at how this counter is able to generate steady upward momentum.

• P/E: 76
• 52-week high: ₹1,379.30
• Volume: 238.2K
• Technical analysis: Support at ₹1,225, resistance at ₹1,500
• Risk factors: Heavy geographic concentration in Hyderabad/South India, operational integration hurdles in new geographies, and a premium valuation
• Buy: above ₹1,320
• Stop loss: Rs 1,265
• Target price: ₹1,450 (2 Months)

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2. Syrma SGS Technology Ltd Syrma SGS Technology Ltd is a prominent Indian Electronic System Design and Manufacturing (ESDM) company, specialising in turnkey electronics manufacturing and magnetic products for the automotive, medical, etc. A rounding pattern at higher levels suggests positive accumulation in the stock. Post some profit booking after the Q4 numbers, the stock has once again caught attention at lower levels.

• P/E: 76.69
• 52-week high: ₹1,188
• Volume: 2.27M
• Technical analysis: Support at ₹1,080, resistance at ₹1,300
• Risk factors: Customer reliance, working capital intensity, and margin pressure
• Buy: above ₹1,170
• Stop loss: ₹1,120
• Target price: ₹1,280

3. Shyam Metalics and Energy Ltd Shyam Metalics and Energy Ltd is a leading Indian integrated metal producer specialising in long steel products, ferro alloys, and power generation. A rounding pattern at higher levels spells some positive accumulation happening in the stock. The dips in the counter has been bought into as can be seen from the revival from the Tenkan Sen and Kijun Sen that is seen on the Daily chart.

• P/E: 49.71
• 52-week high: ₹1,001
• Volume: 771.61K
• Technical analysis: Support at ₹925, resistance at ₹1225
• Risk factors: Commodity price volatility and cyclical nature of the industry
• Buy: above ₹990
• Stop loss: ₹950
• Target price: ₹1,090 (2 Months)

Two Stock Recommendations by MarketSmith India

1. TruAlt Bioenergy Ltd TruAlt Bioenergy Ltd is a strong player in the ethanol production sector, beneficiary of India’s ethanol blending program, government policy support for biofuels, growing demand for renewable fuels, expansion in ethanol capacity, diversified feedstock sourcing, beneficiary of energy transition trends, long-term demand visibility, opportunity from higher blending targets, focus on sustainable energy solutions, strong industry tailwinds, potential for scale-driven efficiencies, reduced dependence on fossil fuels theme, growth opportunities in bio-based products, and strategic importance in green energy sector.

• P/E: NA
• 52-week high: ₹549.00
• Volume: ₹28.61
• Technical analysis: Cup-with-handle base breakout
• Risk factors: Dependence on government policies, feedstock availability risks, raw material price volatility, regulatory changes in biofuel sector, margin pressure from input costs, execution risk in capacity expansion, dependence on oil marketing companies, working capital intensive operations, commodity price fluctuations, weather-related impact on feedstock supply, environmental compliance risks, debt-funded expansion risk, competition from other ethanol producers, delays in policy implementation, and valuation risk after listing/IPO
• Buy: Rs 501–509
• Target price: ₹580 in two to three months
• Stop loss: ₹478

2. Shilpa Medicare Ltd Shilpa Medicare Ltd is a strong player in the oncology products sector, growing specialty pharma portfolio, focus on complex generics, expanding biologics capabilities, strong R&D focus, export opportunities in regulated markets, diversified pharmaceutical business, beneficiary of rising healthcare demand, increasing CDMO opportunities, growth in niche therapeutic segments, strong product pipeline potential, capacity expansion supporting growth, improving margin potential from specialty products, long-term growth visibility in oncology, and opportunity from global outsourcing trend.

• P/E: 45.21
• 52-week high: ₹529.80
• Volume: ₹147.76 crore
• Technical analysis: Cup base breakout
• Risk factors: Regulatory observations and compliance risks, delays in product approvals, intense competition in generics market, pricing pressure in key markets, R&D execution risk, dependence on regulated markets, currency fluctuation impact, product concentration risk, margin pressure from input costs, patent and litigation risks, delay in commercialization of new products, high capital expenditure requirements, customer concentration risk, supply chain disruptions, and earnings volatility from approval timelines
• Buy at: ₹512–520
• Target price: ₹600 in two to three months
• Stop loss: ₹480