Stock market recap: No clarity, despite some bouts of bullishness, has triggered uncertainty once again. However, sentiment remains bullish, with every dip seeing demand, indicating bullish trends. While trading and investing are going through challenging times, we are getting opportunities on a continuous basis.

Three stocks to trade as recommended by Raja Venkatraman of NeoTrader for today:

Best stocks to buy today (all buy trades are rates of equity and sell rates are based on F&O)

RITES Ltd: Buy above ₹229 | Stop ₹218 | Target ₹255 (multiday)

HFCL Ltd: Buy above ₹215 | Stop ₹203 | Target ₹240 (multiday)

Devyani International Ltd: Buy above ₹126 | Stop ₹121 | Target ₹137 (multiday)

Stock market update

Indian equities closed slightly higher on 5 August 2026, as the Reserve Bank of India kept the repo rate steady at 5.25% while raising its FY27 GDP growth forecast to 6.7% and lowering inflation expectations to 5%.

The Sensex gained 152 points, or 0.19%, to end at 78,581, while the Nifty edged up 9.75 points, or 0.04%, to 24,624.65. Sectoral performance was mixed, with Realty, Auto, and Metals leading gains on optimism around festive demand and domestic growth, while Media, Banking, IT, and Pharma slipped.

In the broader market, midcaps rose 0.18% and smallcaps advanced 0.7%, with market breadth favouring advances. Key gainers included Shriram Finance, Grasim Industries, and JSW Steel, while TCS, Apollo Hospitals, and HCLTech dragged. The rupee strengthened to 95.15 per dollar, supported by the RBI’s balanced stance. Overall, policy stability and growth upgrades buoyed sentiment, though rising crude prices capped upside momentum.

Outlook for trading

The persistent confusion remains, as markets have been unable to take the initiative, leading to volatility. The current scenario indicates that the recovery, which is in progress, remains at 24,800.

In the last article, we mentioned that the Max Pain Point remains at 24550, which will come into contention as the possibility of a rebound is unfolding. The market opens with a gap, but these levels are being sold into. Hence, the market, which is a buy-on-dip, sell-on-rally scenario, continues to reward those buying on dips.

Currently, levels around 24,300 could be revised to 23,400, with this level serving as new support and a buying zone in the next few days. A closing move of 23,800 is needed for the trend to sustain. The heavy Call writing seen now at 24,600 to 24800 is now holding the charge of the bullish camp. The Put Call Ratio (PCR) has again dipped below 1 in the Nifty and the Nifty Bank, suggesting that the bullish camp is attempting to trigger a rebound.

Currently, the ADX/DMI that was bearish has not established dominance, which is helping the bullish camp revive. This signals that trends are attempting a rebound from lower levels, as shown in the chart below. However, as trends remain under pressure, we have to bide our time, as the last few sessions have been quite range-bound.

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

RITES (Cmp ₹227.35)

Why it’s recommended: RITES (Rail India Technical and Economic Service) is a Navratna public sector enterprise in India under the [Ministry of Railways. They are a multidisciplinary engineering and consultancy company that provides infrastructure services from concept through commissioning. Since March this year, the prices have been slowly climbing above the Cloud, and in the last few days, the dips in the stock saw some firm buying. In the recent Q1 update a revival from Kumo cloud that is inching higher indicating a possible upward momentum. Moving beyond the recent value area at 780 indicates that we can consider this as an invitation to go long.

Key metrics:

P/E Ratio: 26.94

52-week high: ₹280.60,

Volume: 2.93M

Technical analysis: Support at ₹200 | Resistance at ₹260.

Risk factors: Margin pressure from a revenue mix shifting toward lower-margin turnkey projects, execution and logistics delays.

Buy: Above ₹229.

Stop loss: ₹218.

Target price: ₹255 (Two months)

HFCL (Cmp ₹212.23)

Why it’s recommended: ⁠ HFCL Ltd (formerly Himachal Futuristic Communications Ltd) is a prominent Indian technology and manufacturing company founded in 1987. The stock has seen a strong uptick, and with the IT sector showing some momentum, we can see that profit-booking is finding support at the Tenkan Sen and Kijun Sen, with the price steadily inching higher. Post the recent accumulation at the bands, we can now see a strong thrust following its Q1 numbers. A strong, long-body candle with a gap augurs well for fresh upside, as the market retains positive momentum. A fresh uptick in the DI suggests we can look to initiate a long opportunity here, targeting higher levels. Go long now.

Key metrics:

P/E Ratio: 68.54

52-week high: ₹229.40,

Volume: 37.48M.

Technical analysis: Support at ₹197 | Resistance at ₹245.

Risk factors: High reliance on the telecom sector, severe capital expenditure cycles, working capital constraints, and intense industry competition

Buy: Above ₹215

Stop loss: ₹203

Target price: ₹240 (two months)

DEVYANI (Cmp ₹125.09)

Why it’s recommended: ⁠ Devyani International Ltd (DIL), founded in 1991 and based in Gurugram, India, is the country’s largest franchisee for Yum! Brands. It operates a large network of hospitals, clinics, and pharmacies. The steady rounding pattern that has emerged since January 2026 has formed a base since March and is attempting a recovery to finally move above the cloud region. The prices have also seen a steady increase in volume, combined with the rising ADX DMI, indicating no sign of a let-up in momentum. A break above 121 was a key event that is now initiating us to go long.

Key metrics:

52-week high: ₹1,354

Volume: 785.78K

Technical analysis: Support at ₹115 | Resistance at ₹135.

Risk factors: Market shifts, operational failures, or regulatory changes—any of which could materially harm the company's business prospects and financial health.

Buy: Above ₹126.

Stop loss: ₹121.

Target price: ₹137.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.

Stock market recap: No clarity, despite some bouts of bullishness, has triggered uncertainty once again. However, sentiment remains bullish, with every dip seeing demand, indicating bullish trends. While trading and investing are going through challenging times, we are getting opportunities on a continuous basis.

Three stocks to trade as recommended by Raja Venkatraman of NeoTrader for today:

Best stocks to buy today (all buy trades are rates of equity and sell rates are based on F&O)

RITES Ltd: Buy above ₹229 | Stop ₹218 | Target ₹255 (multiday)

HFCL Ltd: Buy above ₹215 | Stop ₹203 | Target ₹240 (multiday)

Devyani International Ltd: Buy above ₹126 | Stop ₹121 | Target ₹137 (multiday)

Stock market update

Indian equities closed slightly higher on 5 August 2026, as the Reserve Bank of India kept the repo rate steady at 5.25% while raising its FY27 GDP growth forecast to 6.7% and lowering inflation expectations to 5%.

The Sensex gained 152 points, or 0.19%, to end at 78,581, while the Nifty edged up 9.75 points, or 0.04%, to 24,624.65. Sectoral performance was mixed, with Realty, Auto, and Metals leading gains on optimism around festive demand and domestic growth, while Media, Banking, IT, and Pharma slipped.

In the broader market, midcaps rose 0.18% and smallcaps advanced 0.7%, with market breadth favouring advances. Key gainers included Shriram Finance, Grasim Industries, and JSW Steel, while TCS, Apollo Hospitals, and HCLTech dragged. The rupee strengthened to 95.15 per dollar, supported by the RBI’s balanced stance. Overall, policy stability and growth upgrades buoyed sentiment, though rising crude prices capped upside momentum.

Outlook for trading

The persistent confusion remains, as markets have been unable to take the initiative, leading to volatility. The current scenario indicates that the recovery, which is in progress, remains at 24,800.

In the last article, we mentioned that the Max Pain Point remains at 24550, which will come into contention as the possibility of a rebound is unfolding. The market opens with a gap, but these levels are being sold into. Hence, the market, which is a buy-on-dip, sell-on-rally scenario, continues to reward those buying on dips.

Currently, levels around 24,300 could be revised to 23,400, with this level serving as new support and a buying zone in the next few days. A closing move of 23,800 is needed for the trend to sustain. The heavy Call writing seen now at 24,600 to 24800 is now holding the charge of the bullish camp. The Put Call Ratio (PCR) has again dipped below 1 in the Nifty and the Nifty Bank, suggesting that the bullish camp is attempting to trigger a rebound.

Currently, the ADX/DMI that was bearish has not established dominance, which is helping the bullish camp revive. This signals that trends are attempting a rebound from lower levels, as shown in the chart below. However, as trends remain under pressure, we have to bide our time, as the last few sessions have been quite range-bound.

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

RITES (Cmp ₹227.35)

Why it’s recommended: RITES (Rail India Technical and Economic Service) is a Navratna public sector enterprise in India under the [Ministry of Railways. They are a multidisciplinary engineering and consultancy company that provides infrastructure services from concept through commissioning. Since March this year, the prices have been slowly climbing above the Cloud, and in the last few days, the dips in the stock saw some firm buying. In the recent Q1 update a revival from Kumo cloud that is inching higher indicating a possible upward momentum. Moving beyond the recent value area at 780 indicates that we can consider this as an invitation to go long.

Key metrics:

P/E Ratio: 26.94

52-week high: ₹280.60,

Volume: 2.93M

Technical analysis: Support at ₹200 | Resistance at ₹260.

Risk factors: Margin pressure from a revenue mix shifting toward lower-margin turnkey projects, execution and logistics delays.

Buy: Above ₹229.

Stop loss: ₹218.

Target price: ₹255 (Two months)

HFCL (Cmp ₹212.23)

Why it’s recommended: ⁠ HFCL Ltd (formerly Himachal Futuristic Communications Ltd) is a prominent Indian technology and manufacturing company founded in 1987. The stock has seen a strong uptick, and with the IT sector showing some momentum, we can see that profit-booking is finding support at the Tenkan Sen and Kijun Sen, with the price steadily inching higher. Post the recent accumulation at the bands, we can now see a strong thrust following its Q1 numbers. A strong, long-body candle with a gap augurs well for fresh upside, as the market retains positive momentum. A fresh uptick in the DI suggests we can look to initiate a long opportunity here, targeting higher levels. Go long now.

Key metrics:

P/E Ratio: 68.54

52-week high: ₹229.40,

Volume: 37.48M.

Technical analysis: Support at ₹197 | Resistance at ₹245.

Risk factors: High reliance on the telecom sector, severe capital expenditure cycles, working capital constraints, and intense industry competition

Buy: Above ₹215

Stop loss: ₹203

Target price: ₹240 (two months)

DEVYANI (Cmp ₹125.09)

Why it’s recommended: ⁠ Devyani International Ltd (DIL), founded in 1991 and based in Gurugram, India, is the country’s largest franchisee for Yum! Brands. It operates a large network of hospitals, clinics, and pharmacies. The steady rounding pattern that has emerged since January 2026 has formed a base since March and is attempting a recovery to finally move above the cloud region. The prices have also seen a steady increase in volume, combined with the rising ADX DMI, indicating no sign of a let-up in momentum. A break above 121 was a key event that is now initiating us to go long.

Key metrics:

52-week high: ₹1,354

Volume: 785.78K

Technical analysis: Support at ₹115 | Resistance at ₹135.

Risk factors: Market shifts, operational failures, or regulatory changes—any of which could materially harm the company's business prospects and financial health.

Buy: Above ₹126.

Stop loss: ₹121.

Target price: ₹137.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

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.