Markets
Three stocks to trade, as recommended by NeoTrader’s Raja Venkatraman on 19 February
Summary
- Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader on 19 February.
The stock market on 18 February: A recap
On 18 February, the equity markets ended with the broader indices mostly unchanged, as market participants adopted a wait-and-see approach ahead of the release of the Federal Open Market Committee's meeting minutes today, 19 February. One is not expecting a hawkish stance from the US Federal Reserve, this could diminish the likelihood of interest rate cuts in 2025, potentially triggering increased foreign capital outflows from Indian markets.
Trading began on a muted note and remained under pressure throughout the day due to disappointing corporate earnings and ongoing foreign selling. The Nifty was weighed down by declines in FMCG and auto stocks, while the broader market faced even sharper losses. The worry from the retail segment continued to emanate in the BSE Midcap index that dropped nearly 1%, and the BSE Smallcap index too plummeted almost 2% amid concerns over stock valuations.
Market outlook for trading
While we try our best to retain the bullish sentiment it has not been possible to address the situation and the inability of a rebound has stressed everyone. As the trends remain stressed as we head into the week to hold back the bearish sentiments.
As 22,800 threatens to give away lower levels were held with some confidence as Put writers indicated that the recovery is now possible. However, we must note that the trends are clearly not stable, inducing largescale volatility.
The overall bias has now shifted to a rangebound situation while selling pressure at higher levels persists. As highlighted, the resistance zones have now moved to around 23,200 and will remain a stumbling block. With Bank Nifty unable to stabilise the requirement for more triggers is required as 50,000 remains a hurdle.
We had mentioned about the heavy call writing at 23,300. This has now become the base for the trends going ahead into the last trading day of the week. The max pain is now at 23,050; that would now be the target area as we attempt to trade in this volatile market scenario. The Put Call Ratio (PCR) has moved to 0.68 in Nifty, highlighting the strong push to the downside. Bank Nifty continues to keep the trends muted thus keeping the bullish camp under a cloud.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
• TIMETECHNO: Buy above ₹410; stop ₹397; target ₹450
This counter from the packaging industry has been consolidating after the recent decline and footing and the steady rise in prices on Tuesday is seen in action. The rise in the prices of this counter has been quite steady and the recent market correction did not take much sheen from the prices. With robust momentum building up we can look at the whole setup heading higher once again, consider going long.
• PTC: Buy above ₹481; stop ₹466; target ₹510
Post a sharp fall, the stock's prices are seen holding out the bearish tones and the momentum readings are indicating a positive divergence that could help the prices rebound for a while. With MA Bands further away one could consider a strong thrust to the upside. A long body candle seen on Monday is set to push the prices higher. Look to initiate a buy.
• METROPOLIS: Sell at ₹1,647; stop ₹1,690; target ₹1,515
METROPOLIS displayed a range breakdown highlighting the weakness that is triggering a widespread panic. This sector itself is undergoing some strong participation to the downside trends. As every rally is meeting supply, it's best to consider this as a shorting opportunity. As trends remain pressured the volatile market conditions are indicating that the trends can continue lower.
Raja Venkatraman is a co-founder at 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.
