Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
- Deepak Nitrite Ltd: Sell below ₹2,215 | stop loss ₹2,250 | target ₹2,100
This chemical stock has remained under pressure, grappling with high volatility amid a weak Q3 earnings performance. The persistent decline has allowed bears to dominate, further amplifying the stock’s weakness in an already declining market.
The formation of a long-body candle signals a strong breakdown, suggesting the potential for further bearishness. Additionally, the steady decline in the last session has pushed the RSI below 40, reinforcing the likelihood of continued downward momentum.
- VA Tech Wabag Ltd: Buy above ₹1,420 | stop loss ₹1,390 | target ₹1,560
With a positive newsflow about securing a contract from Saudi Arabia and encouraging Q3 results, the profit booking in this counter could come to an end. Overall , there has been some steady buying at lower levels as a hammer bottom was formed at the end of January, highlighting a bottoming formation. The Relative Strength Index (RSI) is seen rising ever since and is now inching higher. The prices are showing intention to step up and can be a good opportunity to go long at current levels.
Also read: FPIs dumped Indian financial stocks in January. But not all is bad for the sector.
- Sun Pharmaceutical Industries Ltd: Sell below ₹1699 | stop ₹1,730 | target ₹1600
Pharma stocks have been under pressure and the fall after a brief rise seen earlier in the month is looking to tread lower. The long body shown at the end of the decline on Tuesday highlights the underlying bearish momentum. As the attempt to move beneath the consolidation zone presents a strong case of bearishness. As RSI is already showing weakness the slip below 40 levels is inviting us to go short in this counter.
Two stocks recommended by MarketSmith India
- Grasim Industries Ltd: Current market price ₹2,491.45 | Buy range ₹2,470-2,500 | Profit goal ₹2,720 | Stop loss ₹2,390 | Timeframe 2-4 weeks
- Welspun Corp Ltd: Current market price ₹778.4 | Buy range ₹765-785 | Profit goal ₹920 | Stop loss ₹735 | Timeframe 1-2 months
Three stocks to buy, recommended by Ankush Bajaj
- Crisil: Buy at ₹5,349 | Target ₹5,850-5,890 | Stop loss ₹5,088
The stock gained 4% yesterday and has broken the upper channel of a falling wedge on the hourly chart. The breakout happened with strong volume, indicating bullish momentum. If sustained, this setup suggests a potential 10-15% move in the coming days. Watch for follow-through and confirmation before entry into the stock.
- Cholamandalam Financial Holdings: Buy at ₹1,512 | Target ₹1,605-1,625 | Stop loss ₹1,460
Yesterday, after an initial sell-off, the stock rebounded with strong volume. Taking a trade with a small stop loss as RSI divergence is visible on the hourly chart. The setup indicates potential upside if momentum sustains. Watch the key resistance levels for confirmation.
Also read: Eicher Motors bet on volume over margin dampens confidence
- India Cements: Buy at ₹278 | Target ₹305-320 | Stop loss ₹252
The stock is showing demand near the ₹250- ₹270 zone, which was a major resistance before breaking out to ₹380. Now, the stock has retraced to the same zone, which may act as a strong demand area. If buyers step in, a potential rebound from this level is likely. Watch the price action for confirmation before entering a trade.
Also read: LIC stock needs APE growth more than a steep valuation discount to private peers
About the analysts: Raja Venkatraman is co-founder, NeoTrader. MarketSmith India is a stock research platform. Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
