Stocks to buy: Raja Venkatraman's top picks for 28 November

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

BHARTIARTL(Cmp ₹2115.60)

BHARTIARTL: Buy above ₹2120, stop ₹2080 target ₹2210 (Multiday)

• Why it’s recommended: Bharti Airtel Ltd. is an Indian multinational telecommunications company headquartered in New Delhi, providing integrated telecom and digital services in 17 countries across South Asia and Africa. With a block deal smashing down the prices we found that on the Daily charts we note that the prices are holding important value area support. While momentum did take a breather the telecom space buzzing and this Nifty stock will be once again back in action. As intraday charts are demonstrating some divergence we can look to buy.
• Key metrics:
  • P/E: 48.07,
  • 52-week high: ₹2174.70,
  • Volume: 4.44M.
• Technical analysis: Support at ₹2050, resistance at ₹2300.
• Risk factors: Intense competition, high capital expenditure and debt, and exposure to macroeconomic and geopolitical volatility.
• Buy : above ₹2120.
• Target price: ₹2210 in 2 months.
• Stop loss: ₹2080.

CDSL (Cmp ₹1624.60)

CDSL: Buy above ₹1632, stop ₹1602 target ₹1678 (Intraday)

• Why it’s recommended: Central Depository Services (India) Ltd. (CDSL) is one of India's two central depositories for securities, responsible for holding financial assets in an electronic form (dematerialized) to reduce risk and simplify transactions. Financial stocks are gearing up for some upward drive and this counter has finally stepped out of the shadow . After testing the neutral zone of RSI for a couple of days we can see the buying interest stepping in on the intraday timeframe. Go long.
• Key metrics:
  • P/E: 72.99,
  • 52-week high: ₹1989.80
  • Volume: 1.44M.
• Technical analysis: Support at ₹1550, resistance at ₹1800.
• Risk factors: Market volatility, regulatory changes, technology and cybersecurity, and competition.
• Buy : above ₹1632.
• Target price: ₹1678.
• Stop loss: ₹1602.

LAURUSLABS (Cmp ₹1003.20)

LAURUSLABS: Buy above ₹1004, stop ₹990 target ₹1029 (Intraday)

• Why it’s recommended: Laurus Labs is an integrated, research-driven pharmaceutical company that manufactures Active Pharmaceutical Ingredients (APIs), intermediates, and finished dosage forms (FDFs). After a sharp rise the prices slipped into congestion as they dipped between TS & KS. With pharma sector reviving the KS line played a role in reviving the sentiment. On Thursday the strong closing indicates more upward possibility. Buy.
• Key metrics:
  • P/E: 79.54,
  • 52-week high: ₹1033.55,
  • volume: 2.61M.
• Technical analysis: Support at ₹950, resistance at ₹1050.
• Risk factors: Volatile ARV segment, significant exposure to stringent regulatory scrutiny, and potential margin pressure.
• Buy: above ₹1004.
• Target price: ₹1029.
• Stop loss: ₹990.

Stock Market Recap

Indian equity markets scaled fresh record highs on Thursday before settling flat due to profit booking. The BSE Sensex and Nifty 50 opened on a strong note, buoyed by optimism around potential interest rate cuts by the Federal Reserve and the Reserve Bank of India in December, alongside hopes of easing geopolitical tensions. Early momentum pushed the Sensex past the historic 86,000 mark to an intraday peak of 86,055.86, while the Nifty surged beyond 26,300 to touch 26,310.45, both crossing these milestones for the first time.

However, as the session progressed, traders booked profits near peak levels, trimming gains sharply. Despite the late sell-off, benchmarks managed to close marginally higher, with the Sensex ending at 85,720.38, up 110.87 points or 0.13 percent, and the Nifty settling at 26,215.55, up 10.25 points or 0.04 percent. The rally highlighted strong investor appetite driven by macroeconomic tailwinds, even as caution prevailed near record levels.

Outlook for Trading

The bullish exuberance demonstrated by Nifty following some strong support by the FII ensured that the momentum has finally emerged. As the month unfolds, we shall continue to see the strong emergence of trends across sectors. While the play that is unfolding is aimed at the RBI policy that is due next week.

When we read the Options data, the PCR has moved above 1 clearly establishing the trends for the days ahead. On receiving continued support from the global cues the trends are getting ready to forge a new possibility. After flashing a new high post, the market open the profit booking did put a pause but lower levels found some suitable buying interest to give an encouraging closing.

The Open Interest data are showing some strong Put writing now with Max Pain has now move to 26200 indicating December series is off to a strong start. With the bulls firmly in control more short covering action may emerge. However, intraday dips seen in the coming sessions should be an opportunity to buy into. We continue to maintain that any dips towards 26000 where there is a set of supports that can play to arrest the fall. Consider trading closer to the median line as shown where the immediate supports lie at 26100 for a rebound as well.

We are ending the week on a strong note so trade we must but also keep booking profits.

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.