Stocks to buy: Raja Venkatraman recommends three stocks to buy today —13 March

Early weakness was driven by IT and banking heavyweights reacting to their earnings reports, dragging the benchmark indices lower. CPSE, public banks, and metal sectors seem to be on a revival mode and could look to extend their rise this week as well.

The energy sector is also showing some brief indication of revival and could show some momentum next week. Despite some positive exuberance from the Nifty, we are at crossroads as Bank Nifty does not seem to offer much room on the upside.

Outlook for trading

Nifty is now showing some rebound again and is now testing the supports around 22500 that we have been mentioning. The up move will face challenges at immediate value area resistances on the daily chart around 22600 and then 22800. A move above this area would force the bearish camp to rethink. The fight between both groups to claim dominance and the possibility of the markets turning lower garnered momentum. The pullback is currently being bought into as investors are looking for a revival.

While the trends show some buying, we could be entering a critical phase as the week is coming to a close. We revise the supports to around 22300, where the next set of supports should be targeted for some buy-on dips to emerge. The put call ratio (PCR) has moved below 1 in Nifty and 0.97 in Bank Nifty, highlighting a calm approach by the bullish camp. As the lack of clarity on trends continues, we need to tread the road ahead carefully.

At the moment the bearishness has not been able to drag the index much lower. Until we see Nifty move below 22500 decisively the open interest data highlights 22200 as the next support. As a range-bound market is in play, we need to be quick in profit-taking as the trend does not have sufficient steam to move strongly in either direction.

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

• Kolte Patil: Buy above ₹341, stop ₹332; target ₹360-366

This real estate counter, after undergoing a lot of volatility, is showing signs of bottoming out. The last few days have been displaying long-body bullish candles in this uncertain market, which has pushed the prices above the bands. A strong breakout beyond the bands have indicated some bullish momentum. After biding some time and absorbing the volatility, we can look at the prices looking to extend. The steady upward bounce has pushed the ADX DMI (average directional movement index) into a buying mode, indicating the trends could push the prices higher.

• Laurus Labs: Buy above ₹585, stop ₹570; target ₹625-640

There has been some steady buying at moving average bands as the momentum tried to revive the prices from lower levels. With the cloud region offering some upward thrust, the possibility of the counter showing a bullish bias has gone up. Now, with the steady upward bias in the last few days, the dip into the moving average bands has attracted some buying interest in the last week, highlighting some steady resolve on the way up.

• Welspun Corp: Buy above ₹822, stop ₹805, target ₹845-870

The capital goods stocks counter, after some pullback action into the moving average band's support, is seen reviving once again. The formation of long body candle at the support region indicates that the trends are showing bullish bias from lower levels. As momentum is reviving from neutral zone look to initiate long. With volume stepping up, we can consider possibility of the trends to continue.

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

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.

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