Monday, February 3, 2025

Stocks to buy: Raja Venkatraman recommends three stocks for today — 20 January

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Nifty 50 on 17 January: Recap

The week started with some apprehension but the strong resurgence by the bulls surprised the bearish camp. The sharp upward traction for the entire last week signalled a bullish intent. The trends do not indicate any sign of reversal; hence, we should continue looking for bullish opportunities. 

The markets displayed volatility once more, dropping nearly half a percent after three days of consecutive gains. Early weakness was driven by IT and banking heavyweights reacting to their earnings reports, causing the benchmark indices to drop. CPSE, public banks, and metal sectors seem to be in revival mode and could look to extend their rise this week as well. The energy sector is also showing some brief indication and could look to show some momentum next week. Despite some positive exuberance from the Nifty, we are still at a crossroads as Bank Nifty does not seem to offer much room on the upside as we head towards the end of the week.

Also Read: Analysts love these four stocks in this struggling sector

Indian stock markets: Way forward

As far as Nifty is concerned, we are noticing a doji pattern on the weekly charts that intends to give a break to the decline in the coming days. The question: will we get a pre-budget rally?At the moment, the trends remain muted as there are not many cues emerging. However, the result season is producing some strong numbers in comparison to the fears about the continuation of Q2. This has helped the markets stabilize. We need to see how the trends unfold.

Open interest data reveals that the lower levels seem to be sealed at the moment around 23000 as the market gapped up quite swiftly in the last week despite the hesitation that was shown earlier by the market participants. With 23500 showing max open interest buildup of call writers, we should now consider this as an important zone in the coming days as the max pain point is now resting at 23500. 

Hence, considering that the trends could face some profit booking at these levels, we have to be careful at this juncture and use dips to buy into them. A determined effort seen on the charts suggests that the upward charge towards 23500 is very much on the cards, as resistance zones are emerging at this level.

Also Read: Mint Primer | Stormy Monday: What to expect, going ahead

 

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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

• Aarti Industries: Buy above 445, stop 425, target 490

After declining for the last five months, the trends in this counter have shown signs of bottoming. Post the recent consolidation, the signs of positive divergence seen on the charts indicate that the trends can continue. The robust long body candles are clearly indicating some short covering coupled with some genuine buying. As the momentum indicator RSI is seen inching higher, we can definitely consider some buying opportunities here.

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• Shivalik Rasayan: Buy above 775, stop 750, target 845

This counter, after a sharp run, witnessed some profit booking and is now taking steady support at the TS & KS line, highlighting the possibility of a revival. A strong showing on Thursday highlights positive sentiment. With the bullish bias stepping up once again the RSI is seen heading higher inviting us to go long.

• GHCL: Buy above 705, stop 685, target 775

This textile counter, after some pullback action into the cloud support region, is seen reviving once again. The formation of long body candle indicates that the trends are showing bullish bias from lower levels. As momentum is reviving from neutral zone look to initiate long. With volume stepping up we can consider possibility of the trends to continue.

Raja Venkatraman is co-founder, NeoTrader.

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. 

Also Read: The market in 2025 will be a story of two halves – challenges followed by opportunities, says Ashish Gupta of Axis MF





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