Religare Broking Analyst Recommends Shares to Buy on June 3, 2026

Indian Stock Market Bounces Back from Four-Session Losing Streak

The Indian benchmark indices, Nifty 50 and Sensex, experienced a rebound on Tuesday, June 3, after a nearly 3% decline over the previous four trading sessions. The market's volatility was driven by concerns surrounding the Iran conflict and persistent foreign institutional investor outflows. The Nifty 50 advanced 0.43% to settle at 23,483.55, while the Sensex climbed 0.52% to close at 74,649.84.

Markets remained volatile on the weekly expiry day but managed to end in the green amid mixed cues. The Nifty traded subdued during the first half of the session, but a sharp rebound in the latter half changed the market tone and helped the index close with gains of nearly half a percent. According to Ajit Mishra, SVP - Research, Religare Broking Limited, the rebound was primarily driven by buying in heavyweight stocks across sectors despite persistent geopolitical uncertainty in the Middle East and continued foreign institutional selling.

Ajit Mishra added that the rebound was also supported by short covering ahead of the weekly expiry, which provided further support to sentiment and accelerated the recovery in the latter half of the session. On the technical outlook, Mishra noted that the Nifty rebounded after retesting its previous swing low around the 23,250 mark, and the closing pattern suggests the possibility of a further recovery. However, the upside is likely to remain capped by the key resistance zone of 23,800–24,000.

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Given the prevailing choppy market conditions, we maintain a cautious stance and recommend focusing on stock selection and disciplined trade management, said Ajit Mishra.

Key Stock Picks

Ajit Mishra's stock picks for the current market conditions are:

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Federal Bank share price continues to outperform within the banking space, holding firm near its record highs. Following a brief consolidation phase, the stock appears poised for a fresh upward move, supported by the formation of a buying pivot. It remains comfortably above its key moving averages, while the RSI has delivered a bullish crossover and is trending in positive territory, indicating strengthening momentum.

NMDC Limited has been maintaining a robust bullish structure, trading consistently above its key moving averages, reinforcing the prevailing positive trend and strong momentum profile. The recent breakout is accompanied by increased trading volumes, reflecting sustained participation and accumulation at elevated levels. Momentum indicators continue to support further upside potential, provided the stock remains above its near-term support zone.

Varun Beverages Limited has shown signs of structural trend reversal with a decisive breakout from a declining trendline, marking the end of its year-long corrective phase. The stock staged a strong recovery from its 200-week moving average, supported by a notable rise in volumes, reflecting renewed buying interest from lower levels. Currently, the stock has formed a buying pivot while sustaining above its important short-term weekly averages, highlighting improving price strength and momentum. The price action indicates the beginning of a renewed upward trend, with the broader structure favouring continuation on the prevailing uptrend.