
Ahead of RBI's policy meeting, Raja Venkatraman recommends stocks for 5 February

Summary
- Raja Venkatraman of NeoTrader recommends three stocks to buy on 5 February.
Nifty 50 on 4 February: Recap
On 4 February, global cues dictated the trends once again. After a weak start that was beset with some apprehension, the strong resurgence by the bulls has surprised the bearish camp to move beyond the Budget-day high. The trends do not indicate any sign of a reversal; hence, you should continue to look for bullish opportunities.
The markets displayed volatility once more on Sensex expiry. A strong closing saw the Nifty rise above 23,700 points comfortably while the Bank Nifty went above 50,000. There was a widespread rally in the market on Tuesday. Barring fast-moving consumer goods (FMCG) stocks, all the other sectors seem to be in a revival mode and could look to extend their rise. While we see some positive exuberance from the Nifty, the Bank Nifty too has joined the upward momentum as we head towards the end of the week.
Indian stock markets: Way forward
The strong action displayed by Nifty right from the start of the day indicated that the bullish exuberance could extend. With the Bank Nifty joining the party one can definitely feel the vibes emanating on the bullish side. However, one must remember that the trends are not bullish but a rebound from lower levels. Hence, it would be prudent to maintain a ‘buy on dip and sell on rally’ approach.
Also read | Buying the dip? These five fundamentally strong stocks are down as much as 50% from 52-week highs.
All eyes are on a much-awaited rate cut by the Reserve Bank of India on 7 February post the announcement of the Budget for 2025-26. As for options, the same vibes do not extend to it as there is a call writing seen at 23,800, which could hold back the rise. These levels also coincide with the Fibonacci resistance at 50% of the fall seen from the December highs. As the trends look to settle and find their feet, the new set of support now lies at 23,500 and would aim to produce a rebound in the coming days.
With the Nifty and Bank Nifty PCR below 1, the indication is that the momentum will be guarded, and investors will need to tread carefully into the upcoming sessions. With many news triggers emerging, it’s best to tread the water carefully at the moment.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• SUPRIYA: Buy dips to above ₹398, stop ₹390, target ₹415
The stock has been undergoing a lot of volatility and recent profit-booking has dragged its prices into the Kumo support region and is now spurring a rebound. The robust long body candles indicate some positive traction ahead. With the RSI pulling back to the neutral zone and a revival thereafter, investors could look at some long opportunity and consider going long.

• JINDALPOLY: Buy above ₹285, stop ₹269, target ₹340
This counter has continued to rebound from support in the last few days. The steady rise is seen inching towards the Kumo cloud, highlighting the continued upward bounce. The long body candle close on Monday highlights positive sentiment. As the momentum is seen rising above important RSI zones, consider going long.
• LTF: Buy above ₹152, stop ₹148, target ₹163
Ahead of RBI’s policy meeting, this stock has shown some good traction and is steadily inching higher after the rounding pattern breakout seen on Tuesday. The momentum is seen rising and pushing the prices above the clouds. The trends are clearly encouraging along with the volumes. As positive vibes begin to extend investors can look to initiate longs.
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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.