Stocks to buy: Raja Venkatraman recommends three stocks for today—10 December

Throughout the session, consumer stocks were in focus, followed by auto and media. The cloud resistance faced by the Nifty proved to be a spoiler in the market, showing limited traction. As trends are looking at the way forward, one needs to plan a more sedate approach as the rally could look to fizzle out if it is unable to move beyond Friday's high.

Indian stock markets: Way forward

In the previous issue, we had mentioned: “.…with sustained rise over the last three days, the possibility of the markets producing a reaction seems possible today." The strong rebound over the last few days seems to have come to a halt. With no specific market trigger coming up, the focus is on the global cues to take the initiative forward. As trends are showing the limitation of sustaining the trends and moving higher, we need to step back and decide on the next course of action. 

Also Read: Indian stock markets review 2024: A tale of two halves

The hurdles on Daily chart of the Nifty continue to be around 24,900, where there is a steady Call Shorting that continues to curb any bullish tendency. Immediate supports are seen at 24,500, where, once again, we can expect some bullish bias to emerge. The turbulence we are witnessing may continue until some overseas trigger emerges to shape the next move. With the Nifty and the Bank Nifty taking a breather it’s a time to step back and revisit the trends across sectors.

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

• HEG: Buy at ₹598, stop ₹575, target ₹670

HEG, after some strong rounding at support levels around 400, has been showing some strong upward thrust. After surpassing the recent swing high around 510, the stock has moved quite well. As volumes are continuing to build, we are now witnessing a robust demand.

Also Read: What should investors do as markets swing? Keep calm and carry on, experts say.

• ZENTECH: Buy at ₹1998, stop ₹1948, target ₹2,080

Zen Technologies is a dominant player in India's defence sector, featuring high gross margins and a solid order book. With multiple roundings in the last few weeks indicating a strong bullish presence, we can consider the trends are showing some renewed momentum. 

• NEOGEN: Buy at ₹2,356, stop ₹2,290 target ₹2,450

NEOGEN, a mid-cap company in the chemical industry, has seen a surge in its stock price, attempting to reach an all-time high. The last few days, we have seen strong price action after taking help at TS and KS Levels. It is looking to move higher. Buying interest on a consistent basis suggests more room on the upside.

Also Read: Value vs momentum strategy: Which works better in bull and bear markets?

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.