Stocks to buy: Raja Venkatraman's top picks for 15 October
Market expert Raja Venkatraman shares his top three stocks to buy today, 15 October. Discover his exclusive picks and analysis to inform your investment strategy.
Markets continued to slip despite a good start, as the road ahead suggests that the trends are still under some heavy weather, and the prospects of going higher now rest on the Nifty Bank, as we are nearing an important event this week. A testing time for traders.
Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for today:
Jindal Stainless Ltd: Buy above ₹780 | Stop ₹755 | Target ₹860 (multiday)
LT Foods Ltd: Buy above ₹408 | Stop ₹395 | Target ₹441 (intraday)
SKF India Ltd: Buy above ₹5,010 | Stop ₹4,890 | Target ₹5,250 (intraday)
Stock market update
On 14 October, the NSE witnessed renewed resistance at higher levels, with the Nifty failing to sustain its early gains. Although the index briefly crossed 25,300, it closed below the intraday lows of the previous two sessions, signalling weakness. Broader market sentiment remained subdued, as the Midcap index declined nearly 1%, reflecting continued underperformance. The Nifty Bank also ended in the red but staged a recovery of over 200 points from its intraday low, helping limit the Nifty’s overall losses.
The 25,150 mark remains a key support level to monitor as the week progresses. Meanwhile, the earnings season gained momentum, with over 15 companies scheduled to announce results tomorrow. Positive earnings reactions were observed in IREDA and Anand Rathi Wealth, while Bank of Maharashtra faced selling pressure following the results. Overall, market participants remain cautious amid mixed earnings and technical resistance at higher levels.
Outlook for trading
Moving to the charts, we note that the trends have been largely oriented towards trading rather than investing. Hence, from a trading perspective, we can note that on the Daily charts highlight that the rally beyond the cloud region has met with some profit booking. The trends remain muted and are now attempting a revival, while the sentiment remains bruised. The uncertain closing seen in the Daily chart of the Nifty in the September series does not bode well for the market.
The emerging trend clearly suggests that the rally seen over the last week is now taking a breather, and the long red body candle formation has ensured that profit booking at the 25,300 mark can continue.
Hence, one should track the trends that are in progress, as the upmove holds itself above 25100 (Nifty Spot) to retain the bullish bias. Momentums on hourly charts are indicating that the prices could witness a resumption of selling pressure if cues from the FOMC meet bring in some adverse reactions. With the rise taking a breather, one needs to factor in some additional triggers, such as newsflow or corporate actions.
For undertaking shorts, we need to see the Nifty move below 25,050 for a potential drop towards 24,750 as per the Open Interest data. A sharp fall is expected once key resistance levels are broken. With the Nifty closing near the Max Pain at 25,150, we should look to approach the next week's expiry with a bullish bias.
If we witness a 30-minute range break on Wednesday, we can consider trading on either side, as the trends remain tentative, and we expect some resistance to kick in. As the ranging 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.
The readings from the Option Data suggest that PCR has moved to 0.77, highlighting that the trends are encountering resistance at higher levels, with some steady Call writing at 25200 levels continuing to prove a fuel that can prevent recovery.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
JSL (Cmp ₹775.55)
Why it’s recommended: Jindal Stainless Ltd (JSL) is a leading Indian stainless-steel manufacturer and a major global player, headquartered in New Delhi. The prices of the last few days are holding a bullish bias and have moved beyond the clouds, enhancing the possibility of more upward traction. As momentum is now picking up, one can expect more upside in the next few days.
Key metrics:
P/E: 22.99,
52-week high: ₹818.20,
Volume: 369.54K.
Technical analysis: Support at ₹700 | Resistance at ₹900.
Risk factors: Volatility in raw material prices, potential for large debt-funded acquisitions, and sustained drops.
Buy at: Above ₹780.
Target price: ₹870 in 1 month.
Stop loss: ₹725.
LTFOODS (Cmp ₹407.40)
Why it’s recommended: LT Foods is a leading player in the consumer food segment, focusing on speciality rice, rice-based products, and organic food & ingredients. The prices have spent the last few days in consolidation, and the strong rebound from cloud support levels has indicated some newfound buying. With a GST cut adding some encouraging tailwinds to the price action, newfound momentum is seen. Consider going long at current levels and also on dips.
Key metrics:
P/E: 71.32,
52-week high: ₹518.35
Volume: 1.07M
Technical analysis: Support at ₹390 | Resistance at ₹450.
Risk factors: Increased competition, regulatory changes, and sector-specific challenges in the dairy industry.
Buy at: Above ₹408.
Target price: ₹441.
Stop loss: ₹395.
SKFINDIA (Cmp ₹5,008.40)
Why it’s recommended: SKF India is a leading manufacturer and supplier of motion engineering solutions, including bearings, seals, and lubrication systems, for the automotive and industrial sectors. With the slow but steady recovery seen in the Automotive space, backed by the GST council recommendations, this counter has been steadily forming a rounding base at the cloud support region. The long body candle seen on Tuesday’s dull market has now fueled more buying interest in the counter. Consider a buy.
Key metrics:
P/E: 196.61,
52-week high: ₹5488.95,
Volume: 81.88K.
Technical analysis: Support at ₹4,600 | Resistance at ₹5,300.
Risk factors: Volatility in raw material prices, challenges from counterfeit products, foreign exchange rate fluctuations, and competitive pressures.
Buy at: Above ₹5,010.
Target price: ₹5,250.
Stop loss: ₹4,890.
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.
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