Stocks to buy: Raja Venkatraman recommends three stocks for today — 2 January
Nifty 50 on 1 January: Recap
Nifty and Nifty Bank ensured that January began on a positive note. The spirited revival in the indices demonstrates that investors are taking every opportunity to buy at lower levels as we continue to experience volatility.
While the market continues its revival, signs of tiredness at higher levels need to be resolved quickly. High-beta stocks continue to attract buying interest, triggering a wave of robust participation. Profit-booking will emerge at relevant intervals as markets attempt to move higher.
Indian stock markets: The way forward
The market did its best over the past three days but did not manage to close above its 200 DMA. However, trends signal the market has managed to arrest the selling pressure and remains positive overall.
A long-body candle on Wednesday highlights the sharp movement we witnessed in the Nifty, clearly aimed at erasing the nervousness that has been holding back a revival, and the index closed higher after sharp movement.
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Important supports to watch out for are 23,500 and 23,200 on the downside. Based on PCR data a negative bias is not ruled out yet and the short-covering action that may follow based on global cues could help the market rise rapidly.
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Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
•CDSL: Buy above ₹1,820, stop ₹1,798, target ₹1,855
NBFC stocks have been under pressure and after profit-booking, trends are seen reviving from lower levels. The RSI rebounding from the neutral zone to arrest the recent reaction indicates that there are some signs of buying emerging. Consider going long.
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•JUBLFOOD: Buy above ₹740, stop ₹730, target ₹755
The value area resistance around 700 was posing a problem in this FMCG counter and the strong showing in the last session has provided a lot of positive thrust. As the sector shows some improvement, the buying interest in select stocks is encouraging. One could consider going long.
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•LARSEN & TOUBRO: Buy at ₹3,695, stop ₹3,665 target ₹3,740
After declining for a while, Larsen & Toubro has found steady demand at lower levels. The strong cloud support on the daily chart and a long-body candle on Wednesday indicate the onset of bullish momentum may persist. With the stock closing above the gap resistance area around 3,650, we could expect more upside in the coming days.
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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