Stocks to buy: Raja Venkatraman's top picks for 24 October

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

PHOENIXLTD (Cmp ₹1691.20)

PHOENIXLTD: Buy above ₹1692, stop ₹1670 target ₹1820 (Multiday)

• Why it’s recommended: Real estate stocks are continuing to show promise and is steadily witnessing notable names from this space showing some steady upward trajectory. The last few sessions have witnessed a steady buying interest. After being in a range for more than 5 months the stock has given a strong breakout above key resistance zones around 1640 with volumes signalling strong bullish interest.
• Key metrics:
  • P/E: 45.54
  • 52-week high: ₹258
  • Volume: 860.34 K
• Technical analysis: Support at ₹186, resistance at ₹222.
• Risk factors: Vulnerability to economic cycles, slowdown in mall consumption, poor long-term growth and underperformance in the market.
• Buy: above ₹1692.
• Target price: ₹1820 in 2 months.
• Stop loss: ₹1670.

SYNGENE (Cmp 661.25)

SYNGENE: Buy above ₹661, stop ₹648 target ₹685 (Intraday)

• Why it’s recommended: Syngene International Limited is a leading integrated research, development, and manufacturing organization that provides scientific services to the global pharmaceutical, biotechnology, nutrition, animal health, and specialty chemical industries. The stock has been consolidating for a while After enduring these challenges, the volumes began to pick up in the last few weeks to show some strong showing in the last few days. A strong closing on Thursday augurs a 'buy'.
• Key metrics:
  • P/E: 56.92
  • 52-week high: ₹960
  • Volume: 1.03M
• Technical analysis: Support at ₹625, resistance at ₹725.
• Risk factors: Input cost inflation, particularly impacting soybean prices, and challenges in its subsidiary.
• Buy: above ₹661.
• Target price: ₹685.
• Stop loss: ₹648.

CUMMINSIND (Cmp 4073.90)

CUMMINSIND: Buy above ₹4080; stop ₹4020, target ₹4225 (Intraday)

• Why it’s recommended: Cummins remains a key player from the midcap space in cement industry, benefiting from increasing data consumption and strong subscriber additions. After being in a range for more than 5 weeks the stock has been forming continuous higher high higher low leading to a steady uptrend with volumes signalling strong bullish interest.
• Key metrics:
  • P/E: 54.42
  • 52-week high: ₹4168.70
  • Volume: 656.35 K
• Technical analysis: Support at ₹4000, resistance at ₹4400.
• Risk factors: High valuation, dividend sustainability, and sensitivity to macroeconomic trends.
• Buy: above ₹4080.
• Target price: ₹4225
• Stop loss: ₹4020.

Stock Market Recap

On Thursday, the Nifty index witnessed a sharp intraday reversal after touching fresh record highs, closing at 25,888.90. The initial optimism was driven by bullish momentum and strong domestic cues, but profit booking at elevated levels triggered a notable pullback.

Mixed global signals and a 2.56% rise in Brent crude to USD 64.19 per barrel added pressure, dampening investor sentiment. Key stocks like ETERNAL, InterGlobe Aviation, Eicher Motors, Bharti Airtel, and UltraTech Cement were among the major laggards, declining up to 3% intraday.

Despite the correction, the broader market trend remains constructive, with indices still poised to extend their winning streak to six consecutive sessions. The session highlighted the importance of managing trades near resistance zones and staying alert to global macro triggers. Traders may look for consolidation or minor dips as opportunities, provided broader support levels hold firm.

Outlook for trading

After a valiant gap-up opening, the market remained stressed at higher levels as the encouraging triggers could not help the market move higher. The lack of participation at higher levels clearly demonstrated a quick dissipation of trends.

At the moment, the constant geopolitical tensions that have been emanating this year, leading to the possibility of continued volatility is very much on the cards. At the moment, there are no cues that are emerging that can help to give us a hint of the near-term volatility that one can expect.

Last issue we had highlighted that the 25700 zone is important. The range is getting tighter, and the readings from the Option Data suggest that PCR has moved to 0.90 once again, highlighting that the trends are witnessing a sell-off at every rise, while we observe that the Call Writing has shifted lower now to 26000. With notable ‘put’ writing seen at 25500 post 25900 we are now at an important point for the days ahead.

Despite the best intentions, the market is unable to conjure up enough strength to continue its upward march. The gap formed at the start of the day on Thursday has been filled. Now, some support and tailwind is needed to contain the damage done.

Overall view continues to advocate an attempt to buy on every dip. At the moment the bias has once again given people a reason to hold on to the bullish side of the markets for now. With limited clarity on the future course of action, we should be looking at participating with a bullish bias.

Trends continue to remain two-phased and require us to balance both sides of the trend. Hence, the situation demands a pragmatic approach to benefit from market participation. After nearly seven months the RSI (momentum indicator shown in blue arrow) is seen crossing into the overbought region. In the last instance, the RSI could not move much higher.

Results season is underway, and the global impact of the worrying macro factors driving up the volatility, we need to see how to navigate the current trends.

While the market continues to offer numerous opportunities, sector rotation will be at work; hence, we have selected candidates that are displaying steady action from both sides until new signals to the contrary emerge.

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.