Monday, February 3, 2025

Stocks to buy: Raja Venkatraman recommends three stocks for today—21 January

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As markets gear up for a pre-Budget rally, all eyes are now on the Union Budget announcement scheduled for 1 February. Policymakers are expected to introduce measures to address the ongoing economic slowdown, with particular focus on strategies to navigate the current challenges.

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The Sensex closed higher on Monday, gaining 454 points to settle at 77,073.44, while the Nifty 50 rose 141 points to close at 23,344.75. Among the top gainers were Kotak Mahindra Bank, Wipro, and Bajaj Finance, while SBI Life, Trent, and Shriram Finance led the decliners. One stock remained unchanged.

The 23,000 support level continues to hold.

Indian stock markets: Way forward

Global cues are expected to influence market trends this week, with currency fluctuations playing a significant role, as previously discussed. On higher timeframe charts, the Nifty is showing a doji pattern on the weekly charts, signalling indecision and tempering the bearish bias. While the week has begun with hints of recovery, traders should approach the market with caution given the tense and uncertain trading environment.

Option data indicates significant Call writing at the 23,500 level, capping bullish momentum. With trends lacking stability, market action is likely to remain limited in either direction. Although there are patches of positivity, they have not translated into sustained movement. The overall bias remains bearish, as selling pressure continues to emerge at higher levels.

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Key resistance zones for the Nifty are at 23,900, with the next significant hurdle at 24,900. Meanwhile, the Bank Nifty is recovering from last week’s downturn but requires stronger triggers to push past the critical 50,000 resistance level, which remains a significant barrier.

(Source: TradingView)

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(Source: TradingView)

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

Laurus Labs Ltd: Buy above 587, stop 572, target 620

The recent correction has found shares of Laurus Labs taking strong support at the cloud thus propelling the stock higher. With the long body candles in play the move above the recent set of resistance around 580 augurs well. The trends in this counter show steady buying interest highlighting possibility of continued upward traction. The robust long body candles are clearly indicating some short covering coupled with some genuine buying. As the momentum indicator ADX/DMI is seen inching higher, we can definitely consider some buying opportunities here.

Anant Raj Ltd: Buy above 920, stop 880 target 1025

After a sharp bout of profit booking, prices are now seen taking steady support at the TS & KS line. The revival from these levels is indicating the resumption of the upward bias. 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.

(Trading View)

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(Trading View)

Angel One Ltd: Buy above 2,590, stop 2,540, target 2,775

Shares of Angel One have found steady support at lower levels following a pullback from December highs. This pullback has attracted renewed buying interest, with the formation of a long-range candlestick pattern over the past seven trading sessions, signalling potential for further upside. The Relative Strength Index (RSI), which had weakened during the recent decline, is now showing signs of recovery. A positive divergence within the cloud support region reinforces this revival, indicating strengthening momentum.

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With momentum shifting from a neutral zone to a more constructive stance, the stock presents an opportunity to initiate long positions.

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.





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