Best stocks to buy today, 17 April: Raja Venkatraman recommends

Will 23500 be the pivot point as we step into the new series? 

The current situation is not highlighting much about the possibility of a trended action as we await the macro numbers and other important metrics.

Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader

Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Thursday , 17 April.

GAEL: Buy CMP and dips to ₹120, stop ₹117 target ₹130-135

ALKYLAMINE: Buy CMP and dips to ₹1780, stop ₹1750 target ₹1900-2000

HOMEFIRST: Buy CMP and dips to ₹1125, stop ₹1100 target ₹1200-1250

Buy: GAEL (current price: ₹124.98) 

• Why it’s recommended: GAEL has shown resilience in the packaged foods sector, with steady growth and favorable market conditions supporting its upward trajectory. Buying interest at lower levels indicates potential for recovery.
• Key metrics: P/E: 22.7, 52-week high: ₹421, volume: 232.08k.
• Technical analysis: Support at ₹109, resistance at ₹135.
• Risk factors: Vulnerability to fluctuations in raw material costs and export demand could impact profitability.
• Buy at: CMP and dips to ₹120.
• Target price: ₹130-135 in 3 months.
• Stop loss: ₹117.

Buy: ALKYLAMINE (current price: ₹1831.40) 

• Why it’s recommended: Alkyl Amines is a strong player in specialty chemicals, with consistent revenue growth and a bullish outlook supported by market trends.
• Key metrics: P/E: 35.77, 52-week high: ₹2797, volume: 35.87k.
• Technical analysis: Support at ₹1680, resistance at ₹1940.
• Risk factors: Dependency on global chemical prices and raw material availability may pose risks.
• Buy at: CMP and dips to ₹1780.
• Target price: ₹1900-2000 in 3 months.
• Stop loss: ₹1750.

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Buy: HOMEFIRST (current price: ₹1175.10) 

• Why it’s recommended: HOMEFIRST has demonstrated strong growth in the housing finance sector, with increasing demand for affordable housing loans driving its performance.
• Key metrics: P/E: 36.35, 52-week high: ₹1221, volume: 422.8k.
• Technical analysis: Support at ₹1050, resistance at ₹1250.
• Risk factors: Sensitivity to interest rate changes and economic conditions could affect loan disbursements.
• Buy at: CMP and dips to ₹1125.
• Target price: ₹1200-1250 in 3 months.
• Stop loss: ₹1100.

Stock market today

On April 16, the benchmark indices sustained an upward momentum, although the outlook remained uncertain. Midcap and smallcap stocks recorded notable gains, and the banking sector, particularly PSU banks, played a major role in driving the rally among midcap stocks. By the market close, the Sensex climbed by 309.40 points (0.40%) to reach 77,044.29, while the Nifty gained 108.65 points (0.47%) to settle at 23,437.20.

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The BSE Midcap index advanced by 0.5%, with the smallcap index experiencing an almost 1% rise. Sector-wise, the media, PSU banks, and oil & gas industries led the upward movement with increases ranging from 1% to 2%. In contrast, sectors like auto, IT, and pharmaceuticals saw declines. The banking sector provided solid support for the rally, with public sector banks emerging as standout performers in the midcap segment.

Outlook for trading

When the market gapped up higher on Monday, it was expected that we would now speed up in the rally. But those expectations came to naught as the pries pulled back across the rest of the week. The trading, for most part, was quite dull and intraday moves too were quite stilted. 

As a result, we had some boring times in the market. In the last week letter we wrote, “The moves are too tentative as yet to be meaningful from the point of view of drawing any specific conclusions. So at best, one can only state that the declines appear to be on hold". This remains the case at the end of the current week as well as the market churns around the same zone while attempting to move higher. But those efforts are still quite listless.

Weakness in the Rupee continued as we pushed to a new all-time low levels beyond 79. The RBI has been pressing some sales of the Dollar to keep the slide under control but with most other global currencies too sliding against the Dollar, we are witnessing continued weakness. As stated earlier, a weak Rupee is most often accompanied by bearish or ranging market trends in equities. We are witnessing that right now.

Moving to the daily charts we find that the bearish pressure has remained suppressed and the need to shift bias shall arise only if Nifty moves below 23500. So, we could be looking at a subdued start on Thursday as there is no clarity in the market at the moment. With stock specific moves one needs to steer clear of the index till the upside above 23500 is closed is critical. The RSI is still holding firm hoping for a revival. Once Nifty moves above 23600 there could be a significant shift opening doors to 24200.

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With the constant attention of the market continuing to be fixed on the data coming out of the US we would be subjected to some knee jerk reaction. The latest was the US GDP data and since it was in line with expectations, the market impact was limited. Till our quarterly results start coming in in full flow this state of affairs may persist.

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

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 guarantees 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.