Markets
Stocks to buy: Raja Venkatraman recommends three stocks for today—9 January
Summary
- Here are three stocks to buy as recommended by Raja Venkatraman of NeoTrader for Wednesday, 9 January.
Nifty 50 on 8 January: Recap
On 8 January, the markets collapsed rapidly at the start of the day to unsettle traders, triggering a massive sell-off. Worldwide economic sluggishness affected local market confidence. On Tuesday night, Wall Street ended in the red, leading to a decline in key Asian markets on Wednesday, influenced by a robust US dollar and increasing bond yields. Going by this, the Reserve Bank of India (RBI) is likely to maintain interest rates in February, contrary to the anticipated rate cut in the market.
Also Read: Mint Primer | Happy New Year: How stocks may swing in 2025
Indian stock markets: Way forward
As trends remain muted, stock-specific action dominates. The Indian domestic markets experienced a sharp dip at open but managed to recover somewhat later. With a lack of significant cues back home to mitigate the volatility, movements were notably pronounced, particularly in the IT and pharma sectors. The intraday charts reveal that the momentum is unable to tread lower and is now creating some support around 23400-23500 in Nifty where the relative strength index (RSI) is unable to penetrate below 30 levels. This signals that trends are showing some rebound from lower levels. With the RSI still unable to penetrate above the neutral zone, we still have to bide our time to move ahead. The option data reveals that 23500 is forming some base with the max pain at 23800 proving to be a tipping point in the coming sessions.
Also Read: Will foreign investors return to Indian markets in 2025?
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• Berger Paint: Buy above ₹463, stop ₹438, target ₹500
After showing some steady decline in the last few weeks , the trends are showing some bottoming formation with a resolve to move higher. The increasing ‘open interest’ is also indicating that the demand at lower levels can drive up the demand. Consider a buy.
• Associated Alcohols & Breweries: Buy above ₹1,180, stop ₹970, target ₹1,115
This counter from the beverage industry is showing some steady resolve to move higher and is demonstrating strong trended action in the last few days. The RSI is gaining strength, reflecting the resolve to move higher indicating signs of buying emerging. One can look to buy.
• Aurum: Buy above ₹260, stop ₹250, target ₹278
Aurum is a hedge fund investment specialist that is finding some good volume in the last few days. We are observing that the trends are showing some steady upside despite in this volatile market. Currently the momentum is gaining traction and can look to head higher in the coming days.
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.
Also Read: Ketan Parekh: Inside Sebi’s 30-month front-running probe
