Buy or Sell: Raja Venkatraman recommends three stocks to buy today — 04 March

Despite positive global cues leading to a higher opening for Indian indices, they quickly turned negative in the first hour. The Nifty was dragged close to the 22,000 level in the first half. However, buying activity in the second half reversed all the intraday losses, resulting in only moderate losses by the close.

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Outlook for trading

The trends remain challenged as the rebound from lower levels continued to attract supplies, indicating that the mixed global cues are keeping the pressure on market sentiment. 

As we get into today’s trading action the market remains mixed as attempts to suppress bearish sentiment have been successful at the start of the week. Each sector contributed some strong performers, which has managed to keep the recovery agenda alive. 

However, one should take note of the deep correction that we have witnessed and that the fall could continue once key support levels at 22,000 are broken.

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As a rebound is in progress, resistance remains at 22,500, with the Max Pain Point at 22,400, which will come into play as possibility of a rebound unfolds. The 22,400 level is the first hurdle, and a move above this is needed hence for a recovery. The heavy put writing at 22,500 continues to be a strong resistance zone for this week’s expiry. The put call ratio (PCR) is around 1 for both indices, indicating that the market is evaluating the next course of action.

Currently the ADX/DMI remains bearish but the aggression by the bearish camp has been unable to establish the dominance and this is helping the bullish camp stage a revival. This signals that trends are attempting a rebound from lower areas, as can be seen in the chart below. However, as trends are still under pressure, we still have to bide our time as the past few sessions have been quite range-bound.

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

• AHLUCONT: Buy above ₹665, stop ₹653, target ₹715

This counter from the real estate industry has found some strong support after the recent decline and saw a steady rise on Monday. A rise in volume could now result in a revival. Robust momentum is seen building up – consider going long.

• ANANDRATHI: Buy above ₹4,150, stop ₹4,070, target ₹4,500-4,625

After the prices moved above the bands they are seen holding bullish tones and the momentum readings are indicating an upmove that could cause the price to rise quickly. As trends are looking promising, with the formation of a long body candle, one could consider a strong thrust to the upside. With near-term resistance turning into supports one could look to initiate a buy.

• KEI: Buy at ₹3,150, stop ₹3,080 target ₹3,520-3,526

After a recent upmove, the stock has seen a revival from lower levels. Supports indicated by candlestick patterns show the trends in this counter could revive after the recent correction. The strong display of momentum clearly highlights that there is more room on the upside. As every dip is meeting demand at lower levels, so it’s best to consider this as an opportunity to go long.

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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.