Stock Picks for Monday, June 8: Sumeet Bagadia Recommends Three Buys

Indian Benchmark Indices End Choppy Session with Modest Losses

The Indian benchmark indices, BSE Sensex and NSE Nifty 50, closed the week with modest losses on Friday as investors digested the Reserve Bank of India's (RBI) latest policy decision. The RBI left the repo rate unchanged at 5.25%, but struck a cautious tone, warning that the prolonged conflict in West Asia, elevated crude oil prices, and persistent supply-chain disruptions could weigh on economic growth while fuelling inflation.

According to the RBI's latest policy review, the central bank lowered its FY27 GDP growth forecast to 6.6% from 6.9% projected in its April policy review. At the same time, it raised its inflation estimate for the financial year to 5.1% from 4.6%, signalling increased pressure on prices. Despite the RBI's measures to attract foreign capital and support the rupee, investors remained cautious, leading to a decline in the benchmark indices.

The BSE Sensex settled 117 points, or 0.16%, lower at 74,243, while the NSE Nifty 50 declined 49.85 points, or 0.21%, to close at 23,366.70. The benchmark indices have now finished lower in three of the past five trading sessions, declining 0.80% during the period and extending their losing streak to a second consecutive week.

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Technical Analysis

According to Sumeet Bagadia, Executive Director at Choice Broking, the formation of a bearish candlestick pattern on the daily timeframe indicates selling pressure emerging at higher levels and reflects cautious sentiment among market participants after the recent recovery attempt. He highlighted that immediate support is placed in the 23,200–23,250 range, while resistance is observed between 23,650 and 23,700 levels.

Bagadia also noted that 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. The volatility index, India VIX, declined by 0.61% to close at 15.78, indicating slightly easing volatility and stable market sentiment.

Sectoral Performance

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Sectorally, strong buying interest was visible in Media, Realty, PSU Banks, and Healthcare stocks, whereas weakness persisted in Metal, IT, Cement, and Oil & Gas sectors. Market breadth remained slightly negative with 1,623 advances against 1,694 declines and 94 unchanged stocks, indicating stock-specific action across the broader market.

Stock Recommendations

Bagadia recommended three buy-or-sell stocks: Axis Bank, Max Health, and TVS Motor. Here are the detailed recommendations:

Key Highlights

• RBI left the repo rate unchanged at 5.25%
• RBI lowered its FY27 GDP growth forecast to 6.6% from 6.9%
• RBI raised its inflation estimate for the financial year to 5.1% from 4.6%
• BSE Sensex settled 117 points, or 0.16%, lower at 74,243
• NSE Nifty 50 declined 49.85 points, or 0.21%, to close at 23,366.70