Stock recommendations: Raja Venkatraman picks these three stocks for today — 6 February
Summary
- Here are three stocks to buy as recommended by Raja Venkatraman of NeoTrader for Thursday, 6 February.
Nifty 50 on 5 February: Recap
On February 5, strong winds of bearishness continued to curb any revival in the Nifty. We have to wait for global cues to settle downso we can handle the positive signs that are emerging slowly. With stock-specific action being triggered, investors need to watch their steps as trends seem brittle now. We saw the Nifty halt at 23800 while Bank Nifty, ahead of the RBI policy event, maintained itself above 50000.
Indian stock markets: Way forward
Indian markets paused after soaring on Tuesday, with the Sensex surpassing the 78,000 mark. The Nifty 50 also posted significant gains in the last week and is seen hinting at some positive bias in the coming days. The midcap and smallcap index continue to remain hesitant, at this point in time. Nifty Bank extended its momentum from the previous session's 1.7% rise, adding another 0.36% on Wednesday.
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 becomes difficult. The strong upmove seen yesterday was a sigh of relief. Now the key levels of 23500 have been held, and we have to consider that the upper echelons always have been a seller’s delight. The open interest in the options data suggests that PCR remains below 1, highlighting that the trends remain pressured. Moving into the upcoming sessions, one needs to consider how the trends shall flow into the upcoming sessions. Bank Nifty shall continue to remain an important index to watch out for as the expectation from RBI policy and the Federal Reserve outcome could give cues to this index going forward.
Also Read: FPIs double down on Nifty option sales ahead of MPC meeting outcome
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• IndusInd Bank: Buy at current market price and dips to ₹1,040, stop ₹1,025, target ₹1,150
This banking stock has been seeing some intense sell-off. The last few weeks have been spent in consolidation, and now, with volatility expanding to the upside, one can look at some potential rise in store. Also, the upcoming RBI policy and the recent profit booking dragged the prices into the ‘kumo support’ region and are now spurring a rebound. With the RSI firmly in the driver’s seat, one should consider a long opportunity.
• Ester Industries: Buy above ₹ 169, stop ₹162 target ₹185
This counter after testing the value support region around 136-138 levels in the last few weeks has shown inclination to resume the upward bounce. With a long body candle close on the last two trading sessions highlights continued positive sentiment. As the momentum is seen rising above important RSI zones consider going long.
• Biocon: Buy above 391, stop ₹375, target ₹425
There is once again a strong case of bullishness seen in pharma stocks and the revival this time around in this stock seems more robust. The strong surge in volumes combined with the push from the support regions augurs well for the prices. The positive ‘directional index’ is seen rising and pushing the prices above the clouds. With a long body candle firmly in place we can look to initiate longs.
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.
Also Read: Buying the dip? These five fundamentally strong stocks are down as much as 50% from 52-week highs.
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