Stocks to buy: Raja Venkatraman recommends top picks for 19 January
Market expert Raja Venkatraman shares his top stocks to buy today, 19 January. Discover his exclusive picks and analysis to inform your investment strategy.
On Friday the Indian stock market struggled to maintain its early gains, ending the session with only marginal growth. While indices like theSensex (up 0.23%) andNifty 50 (up 0.11%) closed in the green, they retreated sharply from their intraday highs as investors turned cautious.
Three stocks to trade today, recommended by NeoTrader’s Raja Venkatraman
TECHM (current price: ₹1670.50)
Buy above ₹1675, stop ₹1625, target ₹1798 (Multiday)
- Why it’s recommended: After a strong rally since November the stock slipped into consolidation. The sharp drop into value region support around 1590 recently delivered a sharp rebound on the back of some strong volumes. Look to initiate a multiweek buy as the stock has resolutely moved higher, forming a large body candle. The positive DI is also inching higher on the intraday timeframe. Go long.
- Key metrics:
- P/E Ratio : 41.72
- 52-week high: ₹1736.35
- Volume: 3.73M
- Technical analysis: Support at ₹1580, resistance at ₹1850
- Risk factors: Cyclical industry volatility,raw material price volatility and intense competition and margin pressure
- Buy : above ₹1675
- Stop loss: ₹1625
- Target price: ₹1798 (2 Months)
SAIL (current price: ₹149.37)
Buy above ₹150.50, stop ₹146, target ₹161 (Multiday)
- Why it’s recommended:A retreat into TS & KS bands and a subsequent recovery formed a nice V-shaped revival. A strong long body candle around the TS & KS bands augurs well for some upside if the market rebounds. A rise in the DI indicates that we can look to initiate a long opportunity.
- Key metrics:
- P/E: 25.52
- 52-week high: ₹970.60
- Volume: 7.05M
- Technical analysis: Support at ₹890, resistance at ₹1100
- Risk factors: Heavy dependence on volatile London Metal Exchange (LME) aluminium and copper prices, significant capital expenditure requirements
- Buy: above ₹150.50
- Stop loss: ₹146
- Target price: ₹161 (2 Months)
PNB (current price: ₹132.36)
Buy above ₹133, stop ₹128, target ₹143 (Multiday)
- Why it’s recommended: The stock consolidating into strong cloud supports has created a nice rounding pattern and fuelled a strong surge on Wednesday. The revival has surpassed the cloud region and a strong upside has emerged in the last trading session.
- Key metrics:
- P/E Ratio: 9.72
- 52-week high: ₹129
- Volume: 34.70M
- Technical analysis: Support at ₹125, resistance at ₹145
- Risk factors: Slower-than-expected revenue growth, managing top-level attrition, and efficiently integrating operations
- Buy : above ₹133
- Stop loss: ₹128
- Target price: ₹143
How the stock market performed on Friday
Nifty Bank showed resilience on Friday, maintaining underlying bullish momentum despite a complex market scenario. However, bullish tendencies are currently limited by a broader cautious trend that has recently rewarded sellers. Choppy conditions are expected as the market seeks stability next week.
Equity benchmarks Sensex and Nifty experienced volatile trade, surrendering some intraday gains after briefly reclaiming key psychological milestones. The Sensex, which surged past 84,000 earlier in the day on the back of strong Infosys Q3 results, slipped 550 points from its peak and closed 187 points lower at 83,570.35, down 0.23%. The Nifty, after touching 25,850, ended at 25,694.35, up 28.75 points or 0.11%. Market breadth was weak, with 1,770 shares advancing, 2,111 declining, and 132 unchanged.
Cipla, Eternal, and Sun Pharma were among the top losers on the Nifty 50 index. Profit booking was evident across sectors, including Bank Nifty, which fell below the 60,000 level after reclaiming it for the first time in four days. Investors remained cautious ahead of Q3 earnings from Reliance Industries, ICICI Bank, and HDFC Bank, with RIL’s results due post-market and the banks’ numbers scheduled for January 17.
Outlook for trading
Mid-cap and small-cap stocks suffered the most on Friday. This crash was triggered by news that US President Donald Trump will impose major tariffs on various goods, including branded drugs and heavy trucks, starting 1 October. The IT sector remains weak due to ongoing H-1B visa concerns, and the Pharma sector is now also threatened by these new trade taxes.
Technically, the Heikin Ashi weekly chart confirms this downward shift. After two weeks of steady gains, a "red small-bodied candle" has appeared, signalling market indecision followed by a choice to move lower. This confirms the "inflection point" I warned about last week. We must now rethink our bullish bias and stay alert.
The markets were crushed again this week, losing 1,000 points over the last seven sessions. With the future unclear, we should trade cautiously. The Nifty is struggling to stay above the 25,500 – 25,600 support zone. Breaking past 25,800 will be difficult, and the 25,400 level is at risk as we enter a volatile, event-filled week.
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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