Domestic equity benchmarks—the Sensex and the Nifty 50—ended with healthy gains on Tuesday, extending gains for the fourth straight session even as the US-Iran war continues, crude oil prices stay up, and foreign institutional investors (FIIs) continue selling Indian stocks.
The Sensex closed at 74,616.58, gaining 510 points, or 0.69%, while the Nifty 50 rose by 155 points, or 0.68%, to settle at 23,123.65.
Here are three stocks to trade as recommended by Raja Venkatraman of NeoTrader for today:
Best stocks to buy today (All Buy trades are rates of equity and sell rates are based on F&O)
Natco Pharma Ltd: Buy above ₹1,085 | Stop ₹1,005 target | ₹1,220 (multiday)
Godawari Power and Ispat Ltd: Buy above ₹285 | Stop ₹275 | Target ₹310 (multiday)
KPIT Technologies Ltd: Buy above ₹710 | Stop ₹675 | Target ₹781 (multiday)
Stock market today
On Tuesday, the benchmark Sensex and Nifty staged a strong recovery after opening on a weak note, supported by robust buying in IT stocks. The domestic markets initially slipped amid rising geopolitical concerns over the West Asia war and investor caution ahead of the deadline set by US President Donald Trump for a possible agreement with Iran. However, renewed interest in technology shares helped the indices rebound sharply from early losses.
Among individual stocks, Jubilant FoodWorks dropped about 8% after issuing a concerning business update on its March quarter performance. In contrast, metal stocks showed strength, with Hindalco Industries advancing 2.8% and Vedanta gaining 2.2% after J.P. Morgan upgraded the aluminium producers to ‘overweight’ from ‘neutral’, citing expectations of sustained higher aluminium prices. Meanwhile, rate-sensitive sectors, including banking, financials, automobiles, and consumer stocks, declined by 0.7% to 1.5% as investors anticipated that the Reserve Bank of India (RBI) might keep interest rates unchanged in its upcoming policy decision.
Outlook for Trading
The strong undercurrent on Tuesday helped the Nifty withstand market volatility and ensured the rise sustained above critical support zones. At the moment, the global trends remain the key drivers of the sentiment. There really isn’t much local news flow to contain the volatility.
The follow-through from the long body candle on Monday, which closed on the positive side, carried the bullish vibes into Tuesday. Trading, therefore, was quite difficult through the week, and it would have been a wonder if one came out unscathed. The daily charts show prices hitting strong support. While recent news is encouraging, the market needs further positive momentum to drive a breakout.
A sideways action had forced us to reconsider the trends as the market has been struggling to show some revival. However, the lower levels seen at the start of the month should lead to the selling tapering off. Recent higher lows suggest that bullish momentum is returning. Despite selling pressure at higher levels, swift recoveries from the lows suggest the market is gearing up to challenge recent highs.
The Nifty has managed to stay above the 22,200-level and has graduated above 23,000, which has now opened the door towards 23,500, the next big hurdle and the immediate resistance for some bullish moves. With the Open Interest data clearly indicating a revival, one should keep an eye on a 30-minute range breakout as a key metric for creating some longs. One should keep looking at every dip as a buying opportunity.
For undertaking shorts, we need to see Nifty move above 22500, which is now the revised support.
The breach mentioned earlier did happen, indicating that the trends remain delicately poised.
The best approach is to continue looking at a 30-minute range breakout on Friday, as we can consider trading on either side.
While trends in the indices are still developing, there is plenty of action in the stocks. We should now refrain from entering short positions in the Nifty and wait for clarity after the RBI policy statement on Wednesday, which may help sustain this recent move above 23,000. Any sustained move below 22,500 would be a clear sign that bullish conviction is waning. With Max Pain at 22,800, the resistance has now moved to 23,100, while open interest shows that the road ahead is more open.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
NATCOPHARM (CMP ₹1,082.40)
Why it’s recommended: Natco Pharma Ltd is a Hyderabad-based, vertically integrated Indian pharmaceutical company founded in 1981, specialising in complex generics, oncology (cancer drugs), and active pharmaceutical ingredients (APIs). The steady rounding pattern forming has ignited fresh bullish momentum. As trends unfold, the recent charge is seen hovering above the 155 region, suggesting the push could carry prices higher. The momentum is also seen as reviving, ably supported by volumes, inviting us to go long.
- Key metrics:
- P/E: 12.92,
- 52-week high: ₹182.70,
- Volume: 3.11 million
- Technical analysis: Support at ₹138, resistance at ₹185.
- Risk factors: High revenue volatility due to reliance on specific, lumpy product launches (e.g., gRevlimid), intense regulatory scrutiny in US and international markets.
- Buy: above ₹1,085.
- Stop loss: ₹1,005.
- Target price: ₹1,220 (2 Months)
GPIL (CMP ₹284.85)
Why it’s recommended: Godawari Power & Ispat Ltd (GPIL), is an integrated steel manufacturer in Chhattisgarh, specializing in producing sponge iron, iron ore pellets, steel billets, wire rods, HB wire, ferroalloys, and operates captive power plants. A sharp reaction into the TS & KS bands, followed by a subsequent recovery, forming a nice rounding formation. A steady hold of the lower levels around the TS & KS bands augurs well for some upside if the market rebounds. A rise in the DI indicates we can initiate a long opportunity here, aiming for higher levels. Go long now.
- Key metrics:
- P/E: 23.85,
- 52-week high: ₹290,
- Volume: 5.06 million
- Technical analysis: Support at ₹270, resistance at ₹325.
- Risk factors: Industry cyclicality, exposure to raw material price volatility, and risks associated with their large capital expenditure plans.
- Buy: above ₹285
- Stop loss: ₹275
- Target price: ₹310 (2 Months)
KPITTECH (CMP ₹707.85)
Why it’s recommended: KPIT Technologies Ltd (KPITTECH) is a leading independent Indian multinational engineering research and development (ER&D) firm, specializing in automotive software and mobility solutions. The trends show a revival, as the recent range has been surpassed, and selling pressure is seen receding, which is bringing a positive reaction. A long-bodied candle seen here highlights the possibility of heading higher, as bullish momentum is increasing. With the RSI showing some positive charge, we can look to initiate a long opportunity for a push to higher levels. Go long now.
- Key metrics:
- P/E: 50.48,
- 52-week high: ₹1,433,
- Volume: 1.91 million.
- Technical analysis: Support at ₹625, resistance at ₹800.
Risk factors: Business is primarily centred on its high concentration in the automotive sector, exposure to the European/US market, macroeconomic volatility in its key markets, and increased competition, all of which affect its profit margins.
- Buy: above ₹710
- Stop loss: ₹675
- Target price: ₹781 (2 Months)
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.