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

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

TCIEXP (Cmp 761.10)

Buy above ₹761 and on dips to ₹735, stop ₹725, target ₹820-840

• Why it’s recommended: TCI Express is a leading B2B express logistics provider specialising in time-definite deliveries with an asset-light model and a nationwide presence. Over the past few days the stock has had a bullish bias. As momentum is now picking up one can expect more upside in the next few days.
• Key metrics:
  • P/E: 33.01
  • 52-week high: ₹1139.20
  • Volume: 148.61K
• Technical analysis: Support at ₹702, resistance at ₹850
• Risk factors: High debt levels and Dependence on Major Customers and economic downtruns could impact returns.
• Buy at: above 761 and dips to ₹735.
• Target price: ₹820-840 in 1 month.
• Stop loss: ₹725.

HERITGFOOD (Cmp 533.45)

Buy above ₹535 and on dips to ₹510, stop ₹495, target ₹585-600

• Why it’s recommended: Heritage Foods, established in 1992, is a fast-growing private sector enterprise in India. It operates in the dairy and renewable energy sectors, with a cattle feed business under its subsidiary Heritage Nutrivet Limited. The stock has spent the past few days consolidating a strong rebound from cloud supportlevels indicates new-found buying. With a GST cut bringing encouraging tailwinds, consider going long at current levels and on dips.
• Key metrics:
  • P/E: 33.52
  • 52-week high: ₹658
  • Volume: 508.54K
• Technical analysis: Support at ₹850, resistance at ₹1200.
• Risk factors: Increased competition, regulatory changes, and sector-specific challenges in the dairy industry.
• Buy at: above 535 and dips to ₹510.
• Target price: ₹585-600 in 1 month.
• Stop loss: ₹495.

MFSL (Cmp 1585)

Buy above ₹1585 and on dips to ₹1530, stop ₹1520, target ₹1698-1730

• Why it’s recommended: Max Financial Services Ltd (MFSL) is a leading Indian private sector company operating in the Life Insurance sector, established in 1988. With the slow but steady recovery seen in the Insurance space backed by the GST council recommendations this counter has been steadily forming a rounding base at the cloud support region. With the long body candle seen on Tuesday’s dull market has now fuelled more buying interest in the counter. Consider a buy.
• Key metrics:
  • P/E: 196.61,
  • 52-week high: ₹1678.80,
  • Wolume: 384.92K.
• Technical analysis: Support at ₹1522, resistance at ₹1800.
• Risk factors: High Debt levels, muted demand and adverse regulatory policies.
• Buy at: above 1585 and dips to ₹1530.
• Target price: ₹1698-1730 in 1 month.
• Stop loss: ₹1520.

How the stock market performed on Tuesday

The broader market remained subdued on Tuesday, with most indices in the red. Traders remained wary of global cues and policy uncertainties, contributing to choppy price action. Despite the late-session rebound, the overall tone was defensive, with participants closely monitoring currency movements and geopolitical developments. The day underscored the market’s sensitivity to external shocks and regulatory shifts.

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 rends remain muted and is now attempting a revival while the sentiment remains bruised. The uncertain closing seen in the Daily chart of Nifty in the September series does not bode well for the market.

The trend that is emerging clearly suggests that the rally seen in the last week is now taking a breather and the doji formation ensured that the prices are holding above the cloud region. Hence , one should track the trends that are in progress as upmove holds itself above 25100 (Nifty Spot) to retain the bullish bias. Momentums on hourly charts are indicating that the prices after settling down seems to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.

For undertaking shorts, we need to see Nifty move below 24900 for a potential drop towards 24750 as per the Open Interest data a sharp fall is expected once key resistance levels break. With the Nifty closing near the Max Pain at 25000 we should look to approach this 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 still remain tentative where we expect some resistances to kick in. As ranging market is in play, we need to be quick in profit taking as we the trend does not have sufficient steam to move strongly in either direction.

The readings from the Option Data suggests that PCR has moved to 0.76, highlighting that the trends are receiving resistance at higher levels with some steady Call writing at 25200 levels continues to prove to be a fuel that can prevent recovery.

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.