Stocks to buy: Raja Venkatraman recommends three stocks for today—16 January
Source: Live Mint
Nifty 50 on 15 January: Market Recap
On 15 January, the market continued to struggle, despite being in a heavily oversold position. Recent upticks are viewed as technical recoveries rather than a true shift in fundamentals. Earnings for Q3 are projected to be lacklustre, weaker than the prior quarter, which further fuels the bearish sentiment. Regarding Foreign institutional investor (FII) activity, there is a persistent trend of outflows as FIIs focus on liquidity generation despite significant corrections in large-cap and PSU stocks. This selling pressure is expected to persist until uncertainties diminish, potentially leading to additional market declines.
Indian stock markets: Way forward
The Nifty 50 remained subdued, and the ability to stage a good recovery remained distant. The rally-sell approach is being adopted, and it continues to hamper recovery attempts. With the absence of encouraging triggers, we need to tread carefully with the Nifty as it tries to stabilize the trends ahead.
As a rebound is in progress, the supports are getting revised to 23,200, with the Max Pain Point at 23,300, highlighting the possibility of a rebound. The levels around 23,500 continue to curb any signs of recovery. A move above this area is needed, hence, it would be a testing phase for the trends ahead.
The heavy call writing at 23,300 would be the doorway that needs to be broken for further upside. The Put Call Ratio (PCR) has moved slightly ahead above 1 in the Bank Nifty, highlighting that an attempt is being made to produce a rebound by the bullish camp. The lack of clarity continues to haunt the market trends. The environment is more of a trading nature due to the limited nature of movement.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• Muthoot Finance Ltd: Buy ₹2,190; Stop ₹2,150; Target ₹2,300
After a sharp rise seen in GOLD, the associated gold financing stocks have been faring quite steadily. The rise of prices of this counter has been quite steady and the recent market correction did not take much sheen from the prices. Post the sharp sell-off that we observed the prices have reached important supports and are seen steadily heading higher. As buying interest emerged once again, consider going long.
• Universal Cables Ltd: Buy above ₹751; Stop ₹733; Target ₹781
This counter after a sharp run is seen finding some steady support at the KS line highlighting the possibility of a revival. Some help from the momentum too has added some colour to the bias. The rebound from lower levels highlights the possibility of resumption of the bullish bias. With the surge moving above value resistance around 380, we can look at more upside in the next few days.
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• DLF Ltd: Buy above 735; Stop ₹720; Target ₹770
This real estate counter after long phase of decline shows the buying interest emerge from lower levels. With the buying interest gaining significant momentum in the last session, we can witness some profit booking as the trends have begun showing signs of reversal. Also, the recent profit booking has brought down the RSI to a pullback mode and is now seeing reviving.
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.
