The volatile market scenario continues to keep everyone guessing. With the war showing no signs of receding, one needs to tread these waters carefully.
Three stocks to trade today, recommended by NeoTrader’s Raja Venkatraman
KARURVYSYA (Cmp 316.75)
Buy above ₹318, stop ₹303, target ₹348 (Multiday)
- Why it’s recommended: Karur Vysya Bank Ltd (KVB), is a prominent private-sector bank to support traders and agriculturists operating a pan-India network, recognized for its strong, consistent financial performance. The charts show that a recent dip has found some good support at the KS levels. The RSI has also rebounded from the neutral zone. With prices holding well after a hammer pattern the trends appear poised to move higher. Go long.
- Key metrics:
- P/E: 13.37
- 52-week high: ₹343.55,
- Volume: 2.22M
- Technical analysis: Support at ₹298, resistance at ₹370.
- Risk factors: Asset quality management, regional concentration, and competitive pressure from larger banks.
- Buy : above ₹318.
- Stop loss: ₹303.
- Target price: ₹348. (2 Months)
SUNDARMFIN (Cmp 5581.50)
Buy above ₹5590, stop ₹5390 target, ₹5995 (Multiday)
- Why it’s recommended: Established in 1954, Sundaram Finance Ltd is a leading NBFC specializing in commercial vehicle and passenger car financing. Since December, a strong surge has turned every price dip into a buying opportunity. This robust performance, coupled with genuine buying at lower levels, suggests that higher price points are sustainable. With the formation of a long-bodied candle, we are seeing strong trends emerge from support levels that could push prices even higher. As momentum remains steady, consider going long once again.
- Key metrics:
- P/E: 34.81,
- 52-week high: ₹5640,
- Volume: 97.95K.
- Technical analysis: Support at ₹5100, resistance at ₹6100.
- Risk factors: High valuation & stock price pressure, increasing debt levels and a low interest coverage ratio and asset quality sensitivity.
- Buy : above ₹5590
- Stop loss: ₹5390
- Target price: ₹5995 (2 Months)
MCX (Cmp 2553.50)
Buy above ₹2555, stop ₹2450, target ₹2775 (Multiday)
Why it’s recommended: The Multi Commodity Exchange of India Limited (MCX), is India's leading commodity derivatives exchange with over 60% market share. It provides a national-level, regulated electronic platform for trading futures and options in commodities such as gold, silver, crude oil, and natural gas. After some steady profit booking in January, prices slipped into consolidation and garnered support from the cloud region to stage a revival. A steady buying at lower levels clearly indicated investors bought on dips.
- Key metrics:
- P/E Ratio: 90.39
- 52-week high: ₹2706
- Volume: 3.76M
- Technical analysis: Support at ₹2350, resistance at ₹2800.
- Risk factors: Cyclical commodity prices, supply chain disruptions and regulatory changes.
- Buy : above ₹2555.
- Stop loss: ₹2450.
- Target price: ₹2775. (2 Months)
How the stock market performed on Wednesday
On 5 March, Indian equity markets staged a sharp rebound, snapping a three-day losing streak. The Sensex surged 900 points, or 1.14%, to close at 80,015, while the Nifty advanced 285 points, or 1.17%, to settle at 24,765. The rally was broad-based, led by strong buying in metals, infrastructure, energy, and auto stocks, with volatility cooling significantly. Market breadth remained positive, as 2,645 shares gained against 1,426 declines.
Adani Ports topped the Nifty chart with a rise of over 4.5%, followed by Larsen & Toubro at nearly 4%. Hindalco, NTPC, and Reliance Industries also posted gains above 3%. Sectorally, Nifty Metal climbed more than 2% and Nifty Infra rose 2.2%, while IT was the only major laggard. Value buying after the recent sell-off, coupled with optimism from geopolitical developments, fueled the recovery, with heavyweights like Reliance Industries driving momentum.
Outlook for trading
The support levels identified in yesterday’s article acted as a vital safeguard as the market showed signs of a spirited recovery. While overall sentiment remains fractured, current trends are making significant strides in shifting market perception. This strong rebound from lower levels is tempered by lingering fear, yet bullish exuberance is beginning to provide the confidence needed for a turnaround.
Technical charts show that this week's trends are recovering and attempting to extend the positive momentum. However, the path ahead remains difficult and likely fraught with inconsistent newsflow. The charts suggest that while the Nifty is attempting to extend its gains, this recovery could be short-lived.
The recent sell-off indicates that the Nifty faced sharp downward pressure upon entering the previously highlighted resistance zones. Given the fractured sentiment, a sustained recovery will require stronger support from global cues. Trends remain muted, and an RSI divergence is currently unfolding, requiring more strength in the coming days to confirm a rebound.
As previously suggested, price gaps will continue to play a crucial role. The market behaved as anticipated: the gap resistance, combined with the Kijun-sen (KS) line, restricted the intraday rally. We are now watching for a move above Thursday’s levels to gauge the trend as the market emerges from oversold conditions. If the short-covering action that began on Thursday extends into Friday, it could trigger a strong surge in both the index and key stocks. As anticipated, the 24,300 level held firm, overcoming initial hesitation to push the Nifty higher.
As we approach the end of the week, the market may maintain its current position while awaiting further triggers for upward momentum. However, as noted yesterday, 24,800 acted as a significant resistance level; since the index has yet to secure a close above this mark, we remain cautious and will continue to monitor it closely.
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.