Best stock recommendations today: MarketSmith India’s stock picks for 3 April

Two stock recommendations by MarketSmith India:

Buy Lemon Tree Hotels Ltd. (current price: ₹140.71)

Why it’s recommended: The start of the holiday season, enhanced operational efficiencies, strategic market diversification.

Key metrics: P/E: 49.63, 52-week high: ₹162.40, volume: ₹88.60 crore.

Technical analysis: Trendline breakout on the daily chart along with strong volume.

Risk factors: Seasonality factor/cyclical nature, affecting occupancy rates and revenues.

Buy at: ₹140.71

Target price: ₹168 in 3 months

Stop loss: ₹128

Buy Mazagon Dock Shipbuilders Ltd (current price: ₹2,604)

Why it’s recommended: Two new potential orders worth ₹1.1 trillion (~12x its FY24 revenue)

Key metrics: P/E: 39.79, 52-week high: ₹2,930, volume: ₹ 457 crore.

Technical analysis: Retesting downward-sloping trendline breakout on the daily chart

Risk factors: Govt dependency, execution, and cost overruns, geopolitical and economic factors.

Buy at: ₹2,604

Target price: ₹3,250 in 3 months

Stop loss: ₹2,340

How Nifty 50 performed on 2 April 

The index snapped its two consecutive days of losing streak and bounced back sharply to close at 23,332.35 ahead of Trump’s reciprocal tariff announcement. The index started the day on a muted note at 23,192 and continued to trend higher as the day progressed. As a result, it formed a bullish candle on the daily chart. All the sectoral indices closed higher. Nifty Realty, Consumer Durables, FMCG, and BFSI stocks gained the most. The advance-decline ratio is skewed toward advancers as the ratio stands at 3:2.

From a technical standpoint, after facing resistance around its 50-week moving average (50-WMA), the index took minor support around its 50-day moving average (DMA) and bounced back sharply. The 14-day relative strength index (RSI) bounced from a crucial support zone and is currently placed around 57. Another technical indicator, MACD, is trending in an upward direction above the central line on the daily chart.

Following O’Neil’s methodology for market direction, MarketSmith India has upgraded the market status to a ‘confirmed uptrend’.

The index took minor support around its 50-DMA and bounced sharply. Moving forward, immediate support is placed around 23,100–23,000, as the 50-day moving average (DMA) aligns with this level. However, a sustained fall below it could lead to further downside. On the upside, Nifty may encounter resistance near the 23,500 level. Furthermore, crossing and holding above 23,500 may turn the index bullish in the coming days.

Also Read: From drought to revival: Are QIPs paving the way for new listings?

How did the Nifty Bank perform? 

Nifty Bank index opened with a positive bias and maintained its position in positive territory throughout the trading session. The index opened at 50,966.90, reaching an intraday high of 51,404.20, a low of 50,908.35, and ultimately closing at 51,348.05. It formed a bullish candlestick pattern, characterized by a higher-high and higher-low structure on the daily chart, signalling price strength and the emergence of buying interest. The index successfully reclaimed its 200-day moving average (DMA), further reinforcing the bullish sentiment in today’s market.

The relative strength index (RSI) has shown a slight upward movement, positioning itself near 64. Meanwhile, the moving average convergence divergence (MACD) maintains a positive crossover, continuing to trade above its signal line. This suggests that the bullish momentum is still intact.

Based on O’Neil’s methodology for evaluating market direction, the current market status for Nifty Bank is in a confirmed uptrend.

The index has maintained support at yesterday’s low, which has now become an immediate level of support. It is crucial to monitor this level, as a breach could lead to increased volatility and potentially more negative pressure on the index. However, if the index continues to trade sustainably and holds above its 200-day moving average (DMA), it could support a move toward the 52,000–52,500 range in the coming days.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543)

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certifiedexperts before making any investment decisions.