Stocks to buy: Raja Venkatraman recommends three stocks for today—8 January
Source: Live Mint
Nifty 50 on 7 January: Recap
Even though there was a brief recovery on 7 January, markets still encountered notable selling pressure during attempts to bounce back, suggesting that bearish sentiments prevail. Interestingly, the volatility index (India VIX) decline indicates a reduction in participant anxiety. Considering these mixed indicators, it’s advisable to maintain a “sell on rallies” approach unless the index convincingly breaks past the 24,250 resistance level. Moreover, with the earnings season on the horizon, traders should concentrate on selective stock positioning and emphasize effective risk management strategies.
Indian stock markets: Way forward
Trends remain muted as stock-specific action dominatesIt is quite challenging for traders as well as investors as they try to make sense of the current volatility. With rampant movement on either side, stocks with positive tailwinds from Q3 numbers are seen witnessing some buying interest, while those that are delivering muted or negative numbers are being punished. The outlook, therefore, continues to be a sell on rallies. The hope now rests with a positive divergence that is developing on the daily chart that can evolve into a strong recovery.
While we wait for some supportive triggers that emerge from global cues, the trends outside India do not seem to hint much in response to the virus attack. The option data indicates not much of a change in open interest as the maximum pain point is at 23900, highlighting that 24000 call writing continues to hold firm, indicating that the trends are under pressure. One needs to see how trends develop in the coming sessions.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• Jindal Worldwide: Buy above ₹445, stop ₹420, target ₹498
This counter from textile industry is showing some steady resolve to move higher and is demonstrating strong trended action in the last few days. With the RSI is gaining strength, prices are steadily increasing, indicating signs of buying emerging. Consider going long.
• Zydus Life: Buy above ₹1005, stop ₹970, target ₹1115
After consolidation for a while at lower levels this pharma counter has won a deal that expands its reach in US diabetes markets, which is a crucial area. The strong thrust seen Tuesday is set to push prices higher. Positive cues in this sector encourage us to persist with a buy scenario.
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• Gokul Agro: Buy at ₹365, stop ₹348 target ₹408
Gokul Agro is one of the leading and fastest-growing FMCG companies engaged in the production, distribution, and exports of various Edible and non-edible oils and their derivatives and feed meals. The last few sessions have been quite steady, holding on despite the volatile market conditions, with trends suggesting more upside in the coming days. With momentum showing some promise, one can look to buy.
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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