Stocks to buy: Raja Venkatraman recommends three stocks for today — 5 March

At close of trading, the Sensex had declined by 96 points or 0.1%, settling at 72,989, and the Nifty had dropped by 36 points or 0.2%, ending at 22,082. Approximately 2,133 shares rose, 1,673 shares fell, and 118 shares remained unchanged.

The US has announced a 25% tariff on imports from Canada and Mexico, while Chinese goods are now subject to a total 20% duty after an additional 10% levy. Meanwhile, reciprocal tariffs are set to take effect from 2 April, heightening concerns over trade disruptions and instability in financial markets.

Indian stock markets: Way forward

Indian markets continued to remain under pressure as the bearish overhang continued to keep the trends suppressed. Stock-specific action emerged, giving some brief upside, but trigger short covering across the board. Nifty Bank held back stiff resistance at 48,000 and showed some brief upside in last trading session on Tuesday.

A sharp downtrend continues to advocate a sell-on rally approach that one needs to factor in an event-driven week. The possibility of sustaining an uptrend has become difficult. The strong upmove seen yesterday was a sigh of relief. Now, the key level of 22500 remains a strong resistance zone. We have to consider that the upper echelons always have been a seller’s delight. The open interest in the option data suggests that put call ratio (PCR) remains around 1, highlighting that the trends remain divided.

Moving into the upcoming sessions, one needs to consider how the trends flow. Bank Nifty shall continue to remain an important index to watch out for as the expectation of a revival is diminishing by the day. With bears inducing more falls in this index and the associated indices, the fall that can emerge should now be considered to plan the way forward.

Also Read: FPI sell-off, retail panic fuel sharp market correction; mid, small caps enter negative territory

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

• AMI Organics: Buy at current market price and dips to ₹2,250, stop ₹2,230, target ₹2,500-2,550

This chemical stock has been undergoing a lot of pain and was subject to some intense sell-off. The last few days have been spent in consolidation, and now, with volatility expanding to the upside, one can look at some potential rise in store. Also, the rebound emerging in certain high beta stocks, and the recent profit booking dragging the prices into the moving average band support region are now spurring a rebound. With the relative strength index firmly in place, one should consider a long opportunity.

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• Electrosteel Castings: Buy above ₹96, stop ₹93 target ₹105-108

This counter, after the sharp drop seen in the last few weeks, the prices are showing positive divergence in the last few days have shown an inclination to resume the upward bounce. A long body candle close on the last two trading sessions highlights continued positive sentiment. As the momentum is seen rising above important RSI zones, consider going long.

• Hikal: Buy above ₹360, stop ₹348, target ₹385-395

There is once again a strong bullishness seen in pharma stocks, and the revival this time around in this stock seems more robust. The strong surge in volumes combined with the push from the support regions augurs well for the prices. The positive ‘directional index’ is seen rising and pushing prices above the clouds. With a long body candle firmly in place, we can look to initiate longs.

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.

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