Stocks to buy: Raja Venkatraman recommends three stocks for today — 7 March

Asian markets, on the other hand, showed optimism, with the MSCI Asia ex-Japan index rising by 1%. This uptick was driven by hopes that Trump might roll back some of the existing tariff measures. Additionally, broader indices in India performed well, as the mid-cap and small-cap segments rose by 0.7% and 1.3%, respectively.

Indian equities are seeing some respite following significant losses over the past five months. After posting their biggest single-day gain in a month on Wednesday, the benchmark indices were up by as much as 0.8% earlier in the session before turning negative.

However, challenges such as sluggish domestic economic growth, foreign capital outflows, and Trump’s threats to impose retaliatory tariffs on trade partners, including India, starting 2 April, have weighed heavily on the stock market.

Indian stock markets: Way forward

The faint news of the Reserve Bank of India injecting some liquidity into the system has kept the banking sector alive. However, the road ahead seems to be fraught with hesitation as there are no clear signals that can trigger some revival. Currently, the limited rise seen in the Nifty Bank has left some questions unanswered. As we mentioned yesterday, the weight to the evidence of revival is seen in the Nifty 50, while a muted scenario is being witnessed in the Nifty Bank as it has once again negated the hardwork done this week. The vibes remain muted, however, with a hesitant drift towards the positive side.

From the chart attached, we can see the resistance trend line has arrested the rise in the past and can again come under the spotlight. With the markets not expecting to do much in the coming week, we could possibly witness some range-bound action and profit booking too can be expected until the RBI steps in. Open interest buildup at 48,500 levels could control the extent of the bearish buildup that unfolded recently into the markets in the coming days. From a trading perspective, one can look to initiate long opportunities in the Nifty Bank at current levels for a rally towards 49,000 where some aggressive call writing is witnessed.

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At the moment, the index is struggling to hold on to the positive vibes that are attempting to propel the prices. With no clear signs of revival, we should be looking for rallies to initiate shorts till 17,000 is exceeded with some decisiveness.

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

• Triveni Turbine Ltd: Buy above ₹536 | Stop loss ₹520 | Target ₹575-590

The strong rebound from lower levels combined with some genuine buying in this counter could now fuel some upside. Overall, there has been some steady buying at lower levels as a hammer bottom was formed in January-end highlighting a bottoming formation. The 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.

• Prism Johnson Ltd: Buy above ₹129 | Stop loss ₹126 | Target ₹137-140

This counter after dipping after some steady profit booking, the prices are seen reviving. A positive divergence on the RSI, as seen on the charts around 120-125 levels in the last week, has some steady resolve on the way up. A long body candle close on the last two trading sessions highlights continued positive sentiment. With momentum showing the potential for further rise in store, one could consider going long.

• Monte Carlo Fashions Ltd: Buy above ₹599 | Stop loss ₹580 | Target ₹645-660

There are some strong recovery seen in select consumer stocks. MONTECARLO shares are in demand and the rise seen in the last session has given a strong breakout, with the possibility of further rise in store. The gradual resumption of upward momentum highlights more room at the top. The attempt to move beyond the consolidation zone clearly highlights a strong case of bullishness. As RSI is seen rising and pushing the prices above recent consolidation. With a long-body candle firmly in place, we can look to initiate longs.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

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.