Stock market update: Post the sharp decline, the absence of global markets brought back some cheer. The trends remain tentative as they try to defend the lower levels. Overall suspicion about the way forward shall remain, but stock-specific action keeps us active.
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 & Sell rates are based on F&O)
Engineers India Ltd: Buy above ₹227 | Stop ₹215 | Target ₹251 multiday)
JB Chemicals & Pharmaceuticals Ltd: Buy above ₹1,980 | Stop ₹1,915 target | ₹2,145 (multiday)
Graphite India Ltd: Buy above ₹675 | Stop ₹635 | Target ₹780 (multiday)
On 16 February, Indian benchmark indices staged a strong rebound, snapping a two-day losing streak in a volatile session. The Nifty opened weak, slipping below 25,400 in early trade amid mixed global cues, but quickly recovered as buying interest picked up in banking, energy, realty, and financial stocks. Momentum built steadily through the day, lifting the index near 25,700 before closing close to its intraday high.
At the close, the Sensex surged 650.39 points, or 0.79%, to 83,277.15, while the Nifty 50 gained 211.65 points, or 0.83%, to settle at 25,682.75. Broader markets underperformed, with the Nifty Midcap Index advancing 0.48% and the Smallcap Index edging up just 0.11%. Despite the cautious global backdrop, the late-session rally underscored resilient domestic sentiment, driven largely by sectoral strength in financials and energy, which helped offset weakness in autos and select IT counters.
Outlook for trading
Hesitation has been overcome, and the strong resolve to move higher at the start of the week has met with good demand. As the trends begin to reverse the decline over the last few days, we are once again at a crossroads, with steady buying participation throughout the day!
Last week, we spoke about the support zone around the KS line, which could help ensure the bulls hang in and give them a chance to move higher. The long body candle formation at lower levels has also formed a Bullish engulfing pattern (label 1), which could drive prices upwards towards the cloud region.
Trading has been daunting in the last few sessions, and is now back to the gap region ahead of Tuesday expiry (label 2). With the bias and newsflow being bullish, the possibilities of a revival emerged. In such a situation, we need to remain calm and hold out for any potential recovery. It would have been a wonder if one came out largely unscathed in the week.
The sharp rise seen on Monday highlights the strong KS support, and the rebound seen could look to extend after a strong decline seen last week. The supplies at a higher level will continue to test the confidence. With strong bullish possibilities emerging at lower levels, we can now see that the weekly charts are beginning to show aggressive upside potential. As positive cues continue to emerge, one should consider participating at every dip, as the market retains a positive bias.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
ENGINERSIN (Cmp ₹333.90)
Why it’s recommended: Engineers India Ltd (EIL), founded in 1965, is a premier Indian public-sector Navratna engineering consultancy providing turnkey project management, design, and procurement services primarily in the oil, gas, and petrochemical sectors. The sharp declines seen over the last few months have been laid to rest by a post-consolidation revival, indicating a strong recovery. On the Daily charts, we also found a range breakout getting formed, leading to a sustained revival. With a push beyond the cloud region and a strong upside has emerged in the previous trading sessions. Buy.
Key metrics:
P/E: 17.46
52-week high: ₹255.25
Volume: 125.65M
Technical analysis: Support at ₹290 | Resistance at ₹400.
Risk factors: High debt, volatile raw material costs (due to heavy imports), foreign exchange fluctuations, intense competition in the commodity PVC market, and seasonal demand swings.
Buy: Above ₹227.
Stop loss: ₹215.
Target price: ₹261. (two months)
JBCHEPHARM (Cmp ₹1,978.70)
Why it’s recommended: J.B. Chemicals & Pharmaceuticals Ltd (JB Pharma), established in 1976 and headquartered in Mumbai, is a prominent Indian pharmaceutical company focusing on affordable, high-quality formulations and Active Pharmaceutical Ingredients (APIs). A strong thrust post the numbers above the range clearly indicates they are not giving up, and recent intraday dips are producing a rebound with strong upward traction. A bullish Kumo crossover suggests we could see a strong upmove if the recent value resistance above 1940 is held, so we can consider going long now.
Key metrics:
P/E: 43.56
52-week high: ₹1,939.30
Volume: 125.65M
Technical analysis: Support at ₹1,880 | Resistance at ₹2,200.
Risk factors: Currency fluctuations, geopolitical issues, and a slowdown in domestic market growth.
Buy: Above ₹1,980
Stop loss: ₹1,915
Target price: ₹2,145 (Two months)
GRAPHITE (Cmp ₹672.05)
Why it’s recommended: Graphite India Ltd is the pioneer and one of India's largest manufacturers of carbon and graphite products. GRAPHITE is consolidating for a while, holding on to higher levels, which is a strong signal that bullishness is persisting at the moment. The momentum is biding its time, and after the strong Q3 numbers, we can look at the trends to see an upmove after a sharp drawdown, with surprise Q3 revenue. The higher high, higher low pattern over the last few weeks seems to be producing a sharp breakout above the recent value area, with volume. Go long.
Key metrics:
P/E Ratio: 32.90
52-week high: ₹684.20
Volume: 1.23M
Technical analysis: Support at ₹585 | Resistance at ₹800.
Risk factors: Cyclical steel industry, volatile raw material prices, and intense global competition.
Buy: Above ₹675.
Stop loss: ₹665.
Target price: ₹780.
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.