Markets
Stocks to buy: Raja Venkatraman recommends three stocks for today — 3 January
Summary
- Here are three stocks to buy as recommended by Raja Venkatraman of NeoTrader for Friday, 3 January.
Nifty 50 on 2 January: Recap
On 2 January, the Indian stock markets saw significant gains, with key indices climbing by more than 1.5% each. The Sensex surged over 1,400 points, while the Nifty 50 broke the critical 23,950 threshold, surpassing the 200-day moving average (200-DMA). This boost was fueled by positive activity in banking and IT sectors, anticipation of strong quarterly earnings, and a supportive technical landscape. Positive factors like better GST collection hinted at a potential emergence of encouraging Q3 numbers.
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Indian stock markets: Way forward
In the last article, we had said, “…short covering action that may follow based on global cues could help the market rise rapidly. “ As anticipated, the strong thrust seen yesterday pushed the markets higher towards an encouraging closing. We have been highlighting the possibility of a restrained move. Yesterday, the strong revival from the lower levels gave hopes for the bullish cause. Considering the nature of the market, we need to keep booking profits as the trends remain unclear. Option data hints that we need to concentrate on 24000 level that has been reclaimed once again. With the surpassing of 24200, we can now revise the stop to 24800 going into the next trading session. With the last trading day of the week, we may experience some profit booking.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• Coromandel: Buy above ₹1,965, stop ₹1,938, target ₹1,998
Speciality Chemical stocks have traded mixed and post the profit booking, buying trends are seen reviving from lower levels. With the average directional index (ADX) gaining momentum, the strong showing continues to highlight signs of buying emerging. Consider going long.
• Apollo Hospitals: Buy above ₹7,460, stop ₹7,390, target ₹7,575
Post consolidation at higher levels, this pharma counter is now set to move higher and the strong showing in the last session has given a lot of positive thrust. With this sector leading the market recovery, the buying interest in select stocks are encouraging. As trends indicate, one can look to buy.
• Varroc: Buy at ₹634, stop ₹625 target ₹650
Varroc, a global technology powerhouse in manufacturing and supplying automotive components, has been finding steady demand at lower levels. The rounding pattern on daily charts indicates that the bullish momentum can persist. With value resistance area around 600 being surpassed, we can expect more upside in the coming days.
Raja Venkatraman is co-founder, NeoTrader.
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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