Markets
Stocks to buy: Raja Venkatraman recommends three stocks for today — 27 January
Summary
- Here are three stocks to buy as recommended by Raja Venkatraman of NeoTrader for Monday, 27 January.
Nifty 50 on 24 January: Recap
On 24 January, the trends remained choppy but the bulls finally survived the onslaught of the bears. However, the absence of continued trends has made everyone suspect the sustenance of the uptrends as the 23,000 base struggles to hold. Markets continued to breathe the air of uncertainty as there were no clear signals visible from either the global or domestic cues.
As a result, we are now in the dark about the outcome of the trends in the coming week. We are beginning the week with prospects of witnessing a highly volatile week. As this week in the markets draws to a close, investors face a scene reminiscent of the turbulence experienced three months ago.
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The Sensex has tumbled by 304.89 points, settling at 76,215.49, while the Nifty slipped past the 23,100 threshold, ending at 23,092.20, down 113.15 points. The midcap index saw a steep fall, shedding 836 points to close at 53,263.
Indian stock markets: Way forward
The Bank Nifty has been weaker in comparison and has seen sustained bearish pressure on every rally, indicating that trends are inclined to head higher. HDFC Bank came out with decent numbers but could not impact the market condition as discussed last week the trends were expected to head into the upper end of the cloud as the indicators were tiring out.
The rise witnessed in the Bank Nifty has suddenly taken a U-turn and is trading lower and the supply has emerged towards the end of the week. However, due to the lack of triggers, we are witnessing a ranging action that could stretch to the expiry.
Today, we will take a look at the Bank Nifty, where more bearishness can seep in once 48,000 is given away, till then bulls will attempt to rebound. The Bank Nifty is a sector that could be avoided for the moment, and instead, we could look at stock-specific action where there are divergent views have been displayed across all the component stocks.
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PSU Banks are having it rough and the continued positive vibes being exhibited shall make it difficult for the Bank Nifty to recover. This, in turn, will spill over to the other sectors like auto, realty and finance. As indicated on Friday, the inability of the Bank Nifty to clear the 50,000 mark seems limited, with hopes resting on ICICI Bank Q3 numbers that was released over the weekend. Could it be in a better position to trigger some recovery to take the market higher.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• Jindal Worldwide Ltd: Buy above ₹415 | Stop ₹404 | Target ₹460
The textile sector is going through a rough patch but this counter has been able to show some resolve and head higher. The reaction from lower levels is now showing a resumption in the bullishness as this stock is showing some signs of bottoming out with some steady buying at lower levels thus highlighting the genuine buying emerging. Post a reaction from higher levels the stock is finding buyers.
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• Hindustan Petroleum Corp. Ltd: Sell below ₹350 | Stop ₹367 | Target ₹320
After forming a strong base at lower support levels, muted Q3 numbers resulted in the breach of important supports. A strong long body red candle that is playing out is inviting more selling into the system. With RSI heading lower the bearishness seen could persist, indicating that we should be looking at some potential decline in the coming sessions.
• Fairchem Organics Ltd: Buy above ₹1,210 | Stop ₹1,188 | Target ₹1,285
FAIRCHEM, a speciality chemical manufacturer has been undergoing some volatile scenario in the last few days. The positive move seen on Friday highlights that there is a shift seen in the counter and the trends are hinting at some bullish bias. The momentum is slowly inching higher, indicating that the bullish bias can extend.
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.
