Ankush Bajaj’s top three stock picks for 6 October
Buy: Canara Bank—Current Price: ₹125.90
Why it’s recommended: Canara Bank is displaying strong bullish momentum, supported by sustained buying interest in PSU banking stocks. The daily RSI stands around 65.8, reflecting steady strength without entering overbought territory. The MACD at +1.14 confirms a positive crossover, indicating continued upward momentum, while the ADX at 40.2 signals a strong ongoing trend. The price has maintained higher highs and higher lows, highlighting trend continuation supported by robust volume activity.
Key metrics:
RSI (14-day): 65.8 — bullish momentum, yet comfortable
MACD (12,26): +1.14 — positive crossover, trend intact
ADX (14): 40.2 — strong trend strength
Technical view: Sustaining above ₹123.80 will keep the structure bullish with potential for a move toward ₹130
Risk factors:
-PSU banks remain exposed to macroeconomic and rate cycle risks.
-Profit-taking could emerge near key resistance levels.
Buy at: ₹125.90
Stop loss: ₹123.80
Target price: ₹130
Buy: Bank of Baroda — Current Price: ₹263.95
Why it’s recommended: Bank of Baroda continues to show robust price action, trading close to its recent highs. The daily RSI at 70.1 reflects strong bullish momentum, while the MACD at +2.54 confirms the continuation of the uptrend. The ADX reading of 45.8 signals a powerful trend phase with growing strength. The stock’s structure suggests a clear breakout from consolidation, supported by consistent volume expansion.
Key metrics:
RSI (14-day): 70.1 — strong bullish bias
MACD (12,26): +2.54 — positive momentum
ADX (14): 45.8 — very strong trend strength
Technical view: Holding above ₹257.60 will sustain the bullish momentum, with upside potential toward ₹275.
Risk factors:
-Near-term overbought zone may trigger mild consolidation.
-Sectoral sentiment linked to monetary policy and treasury yields.
Buy at: ₹263.95
Stop loss: ₹257.60
Target price: ₹275
Buy: Bank of India — Current Price: ₹125.53
Why it’s recommended: Bank of India is exhibiting positive trend continuation with firm technical support. The daily RSI is around 63, indicating strong buying momentum, while the MACD at +0.98 confirms a bullish crossover. The ADX at 37 suggests trend strength is building steadily. The stock is forming a higher base on the daily chart, setting up for a potential breakout toward its short-term target.
Key metrics:
RSI (14-day): 63 — bullish bias
MACD (12,26): +0.98 — positive crossover
ADX (14): 37 — strengthening trend phase
Technical view: Sustaining above ₹123 will maintain positive momentum with room to rally toward ₹130.
Risk factors:
-Vulnerable to volatility in PSU bank space and NPA developments.
-Broader banking sector consolidation could affect short-term performance.
Buy at: ₹125.53
Target price: ₹130
Stop loss: ₹123
Stock market wrap
The NIFTY 50 added 57.95 points (0.23%) to close at 24,894.25, while the BSE SENSEX surged 223.86 points (0.28%) to settle at 81,207.17. The NIFTY BANK also gained 241.30 points (+0.44%) to finish at 55,589.25.
Sectoral performance remained positive with metal rising 1.38%, PSU bank gaining 1.30%, and PSE index advancing 1.30%, while healthcare eased 0.37%, realty index declined 0.12%, and auto index fell 0.06%.
In stock-specific action, Tata Steel (+3.40%), Powergrid (+3.22%), and Hindalco (+1.88%) supported the indices, while Max Health (-3.95%), Coal India (-1.33%), and Eicher Motors (-1.15%) weighed on the broader market.
Nifty technical outlook
The Nifty 50 closed the session marginally higher, signalling a steady continuation of the short-term recovery seen in the previous session. The index is showing early signs of stability after a volatile phase, supported by improving derivatives positioning and a gradual revival in momentum indicators.
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On the daily timeframe, the index continues to hover close to its key short-term moving averages, with the 20-DMA at 24,990 and 40-DEMA at 24,905 acting as immediate pivot zones. The daily RSI has inched up to 49, indicating a gradual improvement in sentiment from neutral to mildly positive. The MACD remains slightly negative at –19, suggesting that while bearish pressure is fading, a full trend reversal is yet to confirm.
As long as the Nifty sustains above its recent swing low near 24,800, the structure remains constructive for a potential retest of higher resistances.
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The intraday setup has strengthened further. The index is trading above both the 20-HMA (24,757) and 40-HEMA (24,823), signalling short-term buying support on declines. Momentum indicators on the hourly chart are also turning positive — the RSI at 60 shows renewed bullish strength, while the MACD at +22 confirms a positive crossover, reinforcing the recovery bias.
This alignment between the short-term moving averages and improving oscillator readings supports a near-term upward move, provided the index sustains above the 24,700 zone.
Derivatives setup
The options data reflects a bullish sentiment shift:
Total Put OI (210.3 million) exceeds Call OI (171.0 million), resulting in a positive OI differential of +39.4 million, reinforcing the bullish undertone.
The day’s OI change also tilts bullish, with Put OI rising by 72.4 million against a Call OI rise of 59.9 million, generating a positive change differential of +12.5 million.
The 25,000 strike holds the maximum Call OI, indicating a strong resistance zone, while aggressive additions at the 24,900 strike point to traders adjusting positions closer to current levels.
On the Put side, the 24,900 strike saw the highest additions, confirming it as a crucial near-term support base.
Overall, the derivatives setup suggests that the market is preparing for a potential breakout above the 25,000 mark.
Futures data
Nifty futures data supports the improving sentiment across expiries:
The October series closed at 25,006.60 (+0.16%) with an OI buildup of 4.38%, indicating fresh long positions.
The November series at 25,137.40 (+0.17%) and the December series at 25,290.70 (+0.17%) also show incremental OI additions, hinting at a bullish rollover trend developing into the next contract cycle.
The Nifty’s structure remains cautiously bullish as momentum and OI data continue to improve. The immediate resistance remains at 25,000-25,050, which coincides with the short-term hurdle seen in Call writing. A decisive close above this zone could trigger a rally toward 25,150-25,300, while a failure to sustain may lead to consolidation between 24,800-25,000. On the downside, support rests at 24,750-24,700, followed by a deeper base near 24,600.
With daily indicators stabilizing, hourly momentum improving, and derivatives positioning showing renewed Put writing, the short-term bias has turned constructively bullish, though follow-through buying above 25,000 remains critical to confirm strength.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
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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 certified experts before making any investment decisions.
