Stocks to buy: Raja Venkatraman's top picks for 26 September
Market expert Raja Venkatraman shares his top three stocks to buy on 26 September. Discover his exclusive picks and analysis to inform your investment strategy.
Indian equity benchmarks extended their losing streak for a fifth straight session on Thursday, with broad-based selling pressure dragging the Nifty below 24,900. The market began the day on a subdued note and remained largely rangebound, but intense selling in the final hour caused the indices to close near their intraday lows.
Three stocks to trade today, recommended by NeoTrader’s Raja Venkatraman:
CEMINDIA (Cmp 818.20)
Buy above ₹820 and dips to ₹790, stop ₹775, target ₹890-925
- Why it’s recommended: ITD Cementation India Limited is a leading Indian engineering and construction company that specialises in heavy civil infrastructure and engineering, procurement, and construction (EPC) projects. The stock has fallen sharply in past few sessions and the prices have tested the cloud support, showing some robustness. Also, a positive long body candle clearly highlights that there is a premium that is building up to push the trends towards new highs. A fresh uptick is momentum is encouraging.
- Key metrics:
- P/E: 34.26
- 52-week high: ₹943.20
- Volume: 2.09M
- Technical analysis: Support at ₹710, resistance at ₹490.
- Risk factors: Demand conditions in urban area and seasonality headwinds.
- Buy: above 820 and dips to ₹790.
- Target price: ₹890-925 in 1 month.
- Stop loss: ₹775.
OPTIEMUS (Cmp 681.05)
Buy above ₹685 and dips to ₹650 stop ₹625, target ₹750-770
- Why it’s recommended: Optiemus Infracom Ltd. is a diversified Indian telecommunications enterprise that engages in electronics manufacturing, distribution, and retail. Despite the strong push backed by volumes that are suggesting a trended action, we will encounter periods of consolidation. As momentum is also picking up, providing a favourable tailwind, we can consider some bullish moves.
- Key metrics:
- P/E: 88.85
- 52-week high: ₹395.90
- Volume: 401.58K
- Technical analysis: Support at ₹490, resistance at ₹900.
- Risk factors: Industry competition , market volatility, elongated operating tailwind.
- Buy: above ₹685 and dips to ₹650.
- Target price: ₹750-770 in 1 month.
- Stop loss: ₹625.
CREDITACC (Cmp 1416.50)
Buy above ₹1,417 and on dips to ₹1,360, stop ₹1,345, target ₹1,560-1,595
- Why it’s recommended: CREDITACC has been going through a rough patch and the V shaped recovery backed by volumes are suggesting a trended action . The last few days the prices have been indicating the strong push above value area resistance around 347 augurs well for the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.
- Key metrics:
- P/E: 116.84
- 52-week high: ₹1,425.50
- Volume: 95.31K
- Technical analysis: Support at ₹1325, resistance at ₹1700.
- Risk factors: Industry competition , market volatility, elongated operating tailwind.
- Buy: above ₹1,417 and on dips to ₹1,360.
- Target price: ₹1,560-1,595 in 1 month.
- Stop loss: ₹1,345
How the stock market performed on 25 September
The Sensex declined by 555.95 points or 0.68% to settle at 81,159.68, while the Nifty shed 166.05 points or 0.66% to close at 24,890.85. Sectoral weakness was evident across the board, with metals being the sole exception showing resilience. Broader market indices mirrored the downtrend, as the BSE midcap and smallcap indices slipped 0.7% each.
Investor sentiment remained cautious amid global uncertainties and persistent profit-booking, contributing to the sustained pressure on frontline stocks. The breach of key support levels in Nifty signals heightened volatility and underscores the need for selective positioning in the near term.
Outlook for trading
Trading has not been pleasant this week amid mixed sentiment. The much-wanted red patch brought an end to the steady buying seen last week, clearly taking the fizz out of the recovery.
The market remained confused yesterday but eventually went well beyond the Gann supports that we have been mentioning around 24,960 (Nifty Spot) to produce a sharp decline. Ahead of the monthly expiry we are ending on a subdued note, drawing people to go short as strong support zones combined with the heavy put writing is only around the 24,500 zone.
A gap support that was eventually filled came to the rescue to bring about a sterling recovery. The lack of revival signatures does indicate that the upward drive will continue to be measured as the market has now seen many unsuccessful revival attempts.
The Max Pain Point has shifted to 25,000 as the PCR remains supressed at 0.76, indicating that selling pressure will remain. As trends are unable to hold on to the bullish bias seen on Monday, we continue to witness some sustained selling pressure, thus leading the trends lower. It's time to be alert as trends are getting clearer to the downside.
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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