A constant turbulence held its grip on the markets as there was no clarity on the indices. The stock-specific action that we were noticing has now stepped up, leading to the trading-oriented behaviour. The market scenario clearly indicates that investors are still waiting by the sidelines.
Here are three stocks to buy or sell, as recommended by Raja Venkatraman of NeoTrader for Monday, 28 July.
Best stocks to buy today—28 July
PUNJABCHEM: Buy CMP and dips to ₹1,260 | Stop: ₹1,250 | Target: ₹1,460-1,520
AUTOAXLES: Buy CMP and dips to ₹1,860 |Stop: ₹1,845 | Target: ₹2,075-2,130
GREENPANEL: Buy CMP and dips to ₹302 | Stop: ₹298 | Target: ₹355-370
The stock market on Friday, 25 July
Benchmark equity indices tumbled on Friday as growing uncertainty over the prospective India-US trade deal, with an 1 August deadline looming, dented market sentiment. By 11:30 am, the BSE Sensex was trading at 81,692.58, down 491 points, or 0.60%, having earlier slumped to an intraday low of 81,405.83—a drop of 778 points. The NSE Nifty followed suit, slipping below the 24,900 level to trade at around 24,930, off 169 points, or 0.68%, and hitting an early low of 24,806.35.
Within the Sensex pack, only Bharti Airtel, Sun Pharma, and Tata Consultancy Services managed modest gains, while Bajaj Finance, Bajaj Finserv, Zomato, PowerGrid, and Infosys featured among the day’s worst performers.
Broader markets witnessed a steeper decline: the Nifty Midcap 100 fell 1.12% to 58,303.25, and the Nifty Smallcap index slid 1.53% to 18,400.60. With the trade-deal deadline drawing near, investors are adopting a cautious stance, awaiting clarity on tariff negotiations.
Outlook for trading
Despite the best intention to revive from lower levels the trends have been very fragile. Repeated attempts to head higher have been met with supplies, which is preventing a possible revival. The inability of the market trends to clearly hold on to indicate any direction has forced us to take a retreat as far as the bullish trends are concerned. The intermittent stock-specific action is not able to drive up sufficient momentum. We are noting that the trends are extremely pressured and this could lead to some sustained selling pressure in the coming week.
As we now enter the expiry week the focus is shifting to the rollover activity that shall attract some buildup as anticipation for a recovery steps up. Now, we could shift our attention to upcoming corporate earnings in the coming month to help the prices rebound. Until then, there is no specific trigger.
Higher timeframe charts are clearly indicating that the trends are now caught in a bearish overhang, especially the Nifty, which could push the market to close the current series below 25,000. The sharp rise seen in June came to an abrupt end since the start of the July series. Since then, the broader indices are making heavy weather about the recovery.
As we wrap up this series, trends are not consistent and we are now moving in a neutral-to-negative setup. The bias, though muted, is still trying to salvage the bullish bias.
The Open Interest is signalling that the PCR continues to be above 1 for Nifty, indicating that there is a strong defence of lower levels, and 25,000, which is the maximum pain point, will definitely be under contention. We have a huge short build-up of Puts at 25,000, which continues to highlight the defence against the selling pressure that persists at the moment.
Some encouraging signs of global cues not giving up could help stem the pressure to go past 25,000, which has now turned into a resistance zone as we head into the current week. As no clarity exists even at this juncture, one should refrain from limiting short position at current levels or on rally towards 25,200 as the momentum is clearly divided.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Punjab Chemicals and Crop Protection Ltd(CmpRs1,317.90)
PUNJABCHEM: Buy CMP and dips to ₹1,260 | Stop: ₹1,250 | Target: ₹1,460-1,520
- Why Punjab Chemicals is recommended: Chemical stocks had some undercurrent in the last few days and this counter had a challenging task until the fortunes turned around value resistance zones of about ₹1,300. From the charts we can observe that a strong upside was reinforced on Friday. Currently, the strong push above the value resistance zone of around ₹1,300 is supported by steady volumes, highlighting the possibility of more upward traction.
- Key metrics
- P/E: 40.79
- 52-week high: ₹1,435.90
- Volume: 17.02K
- Technical analysis: Support at ₹1,200; resistance at ₹1,600
- Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
- Buy at: CMP and dips to ₹1,260
- Target price: ₹1,460-1,520 in 1 month
- Stop loss: ₹1,250
Automotive Axles Ltd (CmpRs1,896.70)
AUTOAXLES: Buy CMP and dips to ₹1,860 |Stop: ₹1,845 | Target: ₹2,075-2,130
- WhyAutomotive Axles isrecommended: Automotive Axles stock may be considered a buy due to its strong financial performance, including healthy profit growth, debt reduction, and high promoter holding, as well as its position as a leading manufacturer of automotive components in India. After a strong consolidation seen in the last few months the stock is showing some encouraging signs and can look to move higher as trends are demonstrating a strong upward drive. Can look to go long.
- Key metrics
- P/E: 18.45
- 52-week high: ₹2,111.75
- Volume: 78.38K
- Technical analysis: Support at ₹215; resistance at ₹350
- Risk factors: Structural issues on the domestic front and regulatory setbacks on the export front
- Buy at: CMP and dips to ₹1,860
- Target price: ₹2,075-2,130 in 1 month
- Stop loss: ₹1,845
Greenpanel Industries Ltd (Cmp ₹320.50)
GREENPANEL: Buy CMP and dips to ₹302 | Stop: ₹298 | Target: ₹355-370
- WhyGreenpanel is recommended: Greenpanel is focused on the wood panel industry, specifically manufacturing and selling products like medium density fiberboard (MDF), plywood, and related items. As this sector picks up, we can look at some notable names that are showing some promise. This counter, after the initial buildup, is seen building some strong push to the upside. As potential to generate upward momentum improves, one can consider some long.
- Key metrics
- P/E: 54.67
- 52-week high: ₹427
- Volume: 220.57K
- Technical analysis: Support at ₹280; resistance at ₹450
- Risk factors: Sluggish growth, negative quarterly results, and reduced institutional investor participation
- Buy at: CMP and dips to ₹302
- Target price: ₹355-370 in 1 month
- Stop loss: ₹298
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.