Best stocks to buy today: Raja Venkatraman recommends three stocks—27 March

• Ambuja Cements Ltd: Buy ₹535 | Stop loss ₹520 | Target ₹575-590

• JTEKT India Ltd: Buy ₹135 | Stop loss ₹131 | Target ₹141-144

• Blue Dart Express Ltd: Buy ₹6,350 | Stop loss ₹6150 | Target ₹6,850-7,000

Stock market update: 26 March

On 26 March, the broader market indices saw significant profit booking at elevated levels, with the Nifty 50 closing 182 points lower and the Sensex declining by 729 points. On the sectoral front, nearly all major indices experienced intraday selling pressure as profit booking was seen at a rapid pace.

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Technically, after opening flat, the market encountered consistent selling pressure throughout the session. From the day’s peak, the indices corrected by over 285 points for the Nifty 50 and 950 points for the Sensex. The global cues continue to be mixed thus causing some inconsistent triggers that can persist in the coming days.

Outlook for trading on 27 March

Currently, leveraged positions (long) are shed and some shorts are also in place. This can facilitate more declines as people can join the short side if a break below 23,400 emerges. Equally, it can present us with a bullish scenario if supports turn out to be favourable. People are much quicker to create fresh longs than fresh shorts, as a norm. Market men are pushing for a decline than an advance. The ADX and DMI is seen generating a bearish trend and will continue to attract more sell-off on rallies to higher levels. Hence, any advances that emerge must be considered as a sell opportunity.

With the Open Interest data indicating that the Put Call Ratio is at 1.01 as we are nearing the last day of the monthly expiry, we should be looking at the trends moving on either side. We should step back from bearish bias till we obtain some clarity. However, look at good stocks that have tread into supports now as an opportunity to initiate longs.

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

• Ambuja Cements Ltd: Buy ₹535 | Stop loss ₹520 | Target ₹575-590

This counter after sharp drop seen in the last few weeks the prices are showing positive divergence in the last few days 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.

• JTEKT India Ltd: Buy ₹135 | Stop loss ₹131 | Target ₹141-144

While the markets, especially the mid-caps have been facing the heat, but this counter managed to withstand the pressure and is now showing signs of revival. The strong showing on Monday despite the avalanche of selling across market highlights the probability of some trended action, the trends in the associated stocks have been on the decline. The sharp move above the cloud region on intraday timeframe suggests that some steady ascent possible in the next few days.

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• Blue Dart Express Ltd: Buy ₹6,350 | Stop loss ₹6150 | Target ₹6,850-7,000

This transportation counter after long period of consolidation shows the selling pressure has gained significance momentum as the trends began to gather steam and tread higher indicating a steady resolve to move higher. On Wednesday after the sharp fall the rise is indicating the onset of a new phase of upward momentum. Also, with the RSI showing more strength one can look to buy now.

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.