Although initial resistance levels were briefly broken on Monday, the market continues to show hesitation, preventing a clear breakout or a stronger trend. Nevertheless, the fact that bullish momentum has persisted despite periodic volatility has increased overall market confidence.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
SHYAMMETL (current price ₹886.15)
Buy above ₹890, stop ₹835, target ₹990 (multiday)
- Why it’s recommended: After a downtrend starting in August 2025, the stock has staged an ascending triangle breakout. The steady consolidation and follow-up buying ahead of its financial results suggest a positive price outlook. A strong push above the "cloud" near 830 following a long sideways move indicates emerging demand. Furthermore, because prices are holding above the Tenkan-sen (TS) and Kijun-sen (KS) lines, a strong bullish move is likely. Go long.
- Key metrics:
- P/E Ratio : 49.34
- 52-week high: ₹1000.90
- Volume: 2.79M
- Technical analysis: Support at ₹820, resistance at ₹985
- Risk factors: primarily related to financial strain, market, volatility, and operational challenges.
- Buy : above ₹890
- Stop loss: ₹835
- Target price: ₹990 (2 months)
RAYMOND (current price: ₹461.10)
Buy above ₹465, stop ₹435, target ₹515 (multiday)
- Why it’s recommended: After a significant decline over the past few months, the stock is showing signs of recovery, recently breaking out above the ‘cloud’ region. This technical turnaround, supported by positive news flow, suggests a favorable price outlook. Given that upward momentum has persisted over the last few days despite broader market conditions, investors may look to initiate a Buy.
- Key metrics:
- P/E Ratio : 454.86
- 52-week high: ₹1602
- Volume: 799.86K
- Technical analysis: Support at ₹2140, resistance at ₹2465
- Risk factors: high dependence on the Indian real estate market, and intense competition in the textile and lifestyle sectors.
- Buy: above ₹465
- Stop loss: ₹435
- Target price: ₹515 (2 months)
VBL (current price: ₹518.85)
Buy above ₹520, stop ₹490, target ₹580 (multiday)
- Why it’s recommended: After a decline lasting more than a year, prices have begun to bottom out and are currently forming a rounding pattern at lower levels. This slow, steady revival following a prolonged bearish phase suggests a positive outlook for the stock. Furthermore, the rising momentum indicated by the Relative Strength Index (RSI) could now trigger an upward drive in prices.
- Key metrics:
- P/E Ratio: 65.56
- 52-week high: ₹543.70
- Volume: 36.09M
- Technical analysis: Support at ₹465, resistance at ₹600
- Risk factors: High valuation pressure, international expansion costs and vulnerability to raw material price fluctuations
- Buy: above ₹520
- Stop loss: ₹490
- Target price: ₹580 (2 months)
How the stock market performed on Monday
Indian equities rebounded on 27 April, snapping a three-day losing streak as easing geopolitical concerns lifted sentiment. Reports that Iran had proposed a plan to the US to reopen the Strait of Hormuz boosted confidence, reducing fears of stalled negotiations and supply disruptions.
The market opened firm and sustained buying momentum throughout the session, closing near the day’s high with broad-based participation. The Sensex surged 639 points to 77,303, while the Nifty advanced 195 points to 24,093.
Broader markets outperformed, with midcaps rising 1.5% and smallcaps gaining 1.9%, underscoring strong market breadth. Sectoral action was widespread, with healthcare, IT, realty, media, consumer durables, pharma, and power indices climbing nearly 2% each.
Sun Pharma, Tech Mahindra, Reliance Industries, Wipro, and Jio Financial Services led the gains, while Shriram Finance, Axis Bank, Bharat Electronics, ICICI Bank, and Tata Consumer Products lagged. The session reflected renewed optimism as investors embraced improving global cues.
Outlook for trading
Although a sharp rebound helped the week start positively, a sense of caution persists following the announcement of a potential resolution. Despite initial anxiety surrounding changes to the Securities Transaction Tax (STT)—which saw rates on futures rise to 0.05% and options to 0.15% in the recent Budget—the market quickly regained momentum as traders shifted focus to medium-term growth. While risks like global monetary shifts and corporate earnings alignment remain, the February 3rd, 2026 session marked a decisive bullish turn for Indian equities.
Recent trade deals, including the landmark India-USA framework and the India-EU FTA, have provided the necessary cues for a broad-based revival. While Foreign Institutional Investors (FIIs) were heavy sellers leading up to the Budget, they are now expected to cover their short positions as these new international agreements improve the market outlook.
Options data suggests that sentiment has shifted in favor of the bulls. Significant Put writing at the 25700 strike indicates a rising floor for the market as the impact of the new trade deals becomes clearer. With the RBI monetary policy statement expected in the next two days—following its decision to hold the repo rate at 5.25%—investors look for final confirmation that the near-term lows have been established.
Based on the chart above, the key resistance and support zones defined in our previous article have held up well, potentially paving the way for a positive close during the April monthly expiry. The 24,400–24,500 range continues to attract selling pressure, as the index faces persistent overhead supply at higher levels.
Notably, the RSI is currently finding support at its neutral zone, which could spark renewed upward momentum. However, given the high volume of short positions following the recent decline, the market may see range-bound movement between 24,000 and 24,800. Consequently, we are adopting a wide-range strategy to navigate this consolidation phase.
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.