Stocks to buy: Raja Venkatraman's top stock picks for 10 October

The Sensex ended 398 points, or 0.49 per cent, higher at 82,172.10, while the Nifty 50 settled with a gain of 136 points, or 0.54%, at 25,181.80. The BSE Midcap and Smallcap indices ended with gains of 0.75% and 0.18%, respectively.

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

ETERNAL (Cmp ₹345.50)

• Why it’s recommended: Eternal Limited is the rebranded parent company of the Zomato platform, an Indian technology company that offers e-commerce services for restaurant food delivery, quick grocery delivery (Blinkit), restaurant discovery and dining out (Zomato), and B2B supply of ingredients (Hyperpure). However, the recent turnaround in the quick commerce sector has helped the prices stabilise in the recent quarter. The strong long body bullish candle seen last week augurs well for the prices. This has led to an improvement in the sentiment. With prices holding firm we can consider going long.
• Key metrics: P/E: 61.32, 52-week high: ₹343.90, Volume: 73.84M.
• Technical analysis: Support at ₹300, resistance at ₹360.
• Risk factors: Debt management, lumpy revenue, market volatility, cyberattacks, and regulatory headwinds.
• Buy above: above 345.
• Target price: ₹375 in 2 months.
• Stop loss: ₹333.

HAL (Cmp ₹4846.30)

• Why it’s recommended: Hindustan Aeronautics Limited (HAL) is an Indian state-owned aerospace and defense company, established in 1940 and headquartered in Bengaluru. HAL designs, manufactures, and maintains aircraft, helicopters, aero-engines, and other related aerospace products and systems for defence and civil applications. The volatile moves seen in the last few days are now seen holding, indicating a possibility of some upward bounce as a rounding pattern is seen forming with volumes. Can look to go long.
• Key metrics: P/E: 39.28, 52-week high: ₹5166, Volume: 1M
• Technical analysis: Support at ₹4630, resistance at ₹5000.
• Risk factors: High dependency on the Indian government for defence contracts. Other major risk factors include potential project delays, supply chain vulnerabilities
• Buy at: above 4860.
• Target price: ₹4960.
• Stop loss: ₹4800.

HCLTECH (Cmp ₹1486.50)

• Why it’s recommended: HCLTech, legally known as HCL Technologies, is an Indian multinational information technology (IT) consulting and services company. Headquartered in Noida, India, it is a flagship company of the HCL Group. The counter has been consolidating for a while steadily moving higher forming higher high and higher lows for the past few days. With some positive beats from TCS, IT stocks managed to gather support and showing a turnaround. Look to buy.
• Key metrics: P/E: 31.83, 52-week high: ₹2012.20, volume: 2.68M.
• Technical analysis: Support at ₹1400, resistance at ₹1800.
• Risk factors: Competitive, economic, and technological changes impacting the IT services industry, along with challenges specific to its business model and the rise of artificial intelligence (AI).
• Buy at: above 1490
• Target price: ₹1550.
• Stop loss: ₹1450.

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.