Stocks to buy: Raja Venkatraman recommends three stocks for today — 30 January
Nifty 50 on 29 January: Recap
Indian markets soared on Wednesday, with the Sensex surpassing the 76,500 mark, rallying over 600 points. The Nifty 50 also posted significant gains, climbing 206 points to close at 23,163. The midcap index outperformed, surging more than 2% with a robust 1,189-point gain, ending the session at 52,719. The rally was largely driven by strong performance in banking and IT stocks. Nifty FMCG was the sole laggard, dipping 0.4%, while the other 12 sectoral indices finished in the green.
Nifty Bank extended its momentum from the previous session’s 1.7% rise, adding another 0.6% today. This came on the back of the Reserve Bank of India’s (RBI) recent liquidity-boosting measures, which included bond purchases and dollar/rupee swaps. Analysts and traders view these actions as potential precursors to a rate cut next month. With the RBI’s measures expected to inject $17.39 billion into the banking system, the market’s positive response reflects optimism.
Also Read: Mint Primer | RBI’s ₹1.5 trillion liquidity boost: How will it help?
Indian stock markets: Way forward
The US Federal Reserve meeting expectations did drive up the sentiment as the market was positive right from the morning yesterday and the quick dip only found some genuine buying that was also coupled with some short covering. While a sell-on rally approach has been advocated by all and sundry, one needs to factor in that in an event-driven week, the possibility of a trend to sustain becomes difficult. The strong upmove seen yesterday was a sigh of relief. Now, the key levels of 23000 have been held, but the upper echelons always have been a seller’s delight.
The open interest in the options data suggests that the put call ratio (PCR) remains steady at around 1 with the monthly expiry today; one needs to consider how the trends will flow into the upcoming sessions. Bank Nifty shall continue to remain an important index to watch out for as the expectation from RBI initiatives and the Federal Reserve outcome could induce this index, as well as the associated indices, to plan the way forward.
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Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• SRF: Buy above ₹2,680, stop ₹2,635, target ₹2950
Chemical sector has its shares of ups and downs and this has been absorbed by this counter quite well. The steady higher lows over last few days have attracted some strong bullish vibes. The last few days have been spent in consolidation and the move above the recent set of highs highlights potential upward drive in the coming days.
• Avanti Feed: Buy above ₹700 , stop ₹675, target ₹770
The robust Q3 numbers resulted in a strong push above resistance, inviting us to go long. The move seen recently supported by a body bullish candle along with the rising momentum is inviting more buying into the prices. As RSI is heading higher, the upward momentum could persist in the coming sessions fuelled by positive market sentiment.
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• Wockhardt Ltd: Buy above ₹1,330, stop ₹1,305, target ₹1,450
Wockhardt Ltd, a pharma company that is keenly tracked by many market participants and a steady growth seen in the last few months is seen riding into strong set of supports as we try to recover. The strong support from the cloud region, along with the RSI showing some positive divergence, indicates a potential rebound.
Also Read: Pharma stocks tumble over Trump’s relief funding freeze
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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