Best stocks to buy today: Raja Venkatraman recommends three stocks for 29 April

Here are three stocks to buy on Tuesday, 29 April

Buy Paras Defence and Space Technologies (current price at Rs1142.90)

• Why it’s recommended: The stock has shown strong momentum, supported by increased demand in the defence sector and strategic government initiatives promoting indigenous manufacturing. With its robust product portfolio and consistent performance, Paras Defence presents a promising long-term opportunity.
• Key metrics: P/E: 64.80; 52-week high: ₹1,592.70; Volume: 333.21k
• Technical analysis: Support at ₹1,030; Resistance at ₹1,590
• Risk factors: Dependency on government contracts and geopolitical tensions could impact revenue. Additionally, fluctuations in raw material costs and regulatory changes may pose challenges.
• Buy at: CMP and dips to ₹1,105
• Target price: ₹1,268-1,298 in 3 months
• Stop loss: ₹1,080

Buy GUFICBIO (current price: ₹386)

• Why it’s recommended: This counter is engaged in the manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals and related services. The company is also having a diversified portfolio that is able to withstand the fluctuations and dynamics of the pharmaceutical sector. With its innovative product pipeline and strategic expansions, Gufic Biosciences presents a promising long opportunity.
• Key metrics: P/E: 40.71; 52-week high: ₹504.25; Volume: 110.43k
• Technical analysis: Support at ₹278; Resistance at ₹504
• Risk factors: The frequently changing regulatory approvals and competitive pressures in the pharmaceutical industry could impact growth. Additionally, fluctuations in raw material costs may pose challenges.
• Buy at: CMP and dips to ₹370
• Target price: ₹408-425 in 3 months
• Stop loss: ₹360

Buy Privi Speciality Chemicals (current market price ₹1994.90)

• Why it’s recommended: After consolidating for the last few days in April, the trends have started picking up. The company continues to retain its strong fundamentals and consistent growth in the specialty chemicals sector highlights possibility of some renewed demand at lower levels. Consider going long.
• Key metrics: P/E: 48.85; 52-week high: ₹2,017; Volume: 24,720
• Technical analysis: Support at ₹1,751; Resistance at ₹2,317
• Risk factors: Dependency on raw material costs and fluctuations in global chemical prices could impact profitability. Regulatory changes and competitive pressures in the industry may also pose challenges.
• Buy at: CMP and dips to ₹1,937
• Target price: ₹2,080-2,125 in 3 months
• Stop loss: ₹1,900

Stock markets on Monday

A wave of optimism swept through Dalal Street on Monday as market heavyweights rallied, buoyed by Reliance Industries' impressive March quarter performance. Reliance's stock surged by nearly 6% following its robust Q4 earnings, which exceeded expectations across its diverse operations, including the oil to chemicals segment. This stellar result prompted numerous brokerages to revise their target prices upward for the Nifty 50 giant. The overall upbeat sentiment lifted broader indices too, with the Sensex climbing 1,005.84 points (1.27%) to close at 80,218.37 and the Nifty gaining 289.15 points (1.20%) to settle at 24,328.50.

There was considerable support from foreign institutional investors (FIIs) as a key factor behind the recent rally in Indian equities. Over the last eight days, FIIs infused over ₹32,000 crore into the markets, reversing their earlier selling streak. This shift was largely attributed to the subdued performance of US assets, including stocks and bonds, alongside a depreciating dollar. As global economic uncertainties persist, experts anticipate continued foreign inflows into Indian markets, further strengthening the resilience displayed by midcap and smallcap indices.

Outlook for trading

The way ahead seems to be caught in consolidation as the trends try to unfold the way ahead. With no clarity that at the moment at the highs, there is a constant attempt to predict the future trends, which will continue to remain shrouded with some uncertainty and will depend on the Q4 numbers that are showing the way forward.

Moving to the hourly charts, we find that the bearish pressure is contesting at higher levels, and the trends will need to now move above the last 4 trading days that have been testing the 24500 region. There is a clear sign of negative divergence (red lines) that are shown indicating the momentum is not supporting the recent upmove. If there is a lack of support then the trends could quickly descend and this could trigger some downmove in the coming days. A similar action is seen in Bank Nifty; we shall now have to look at some encouraging triggers to reinstate the bullish bias.

At the moment, the immediate resistance zone around 24500 would now be the new hurdle going ahead. The Option data reveals that the trends remain suppressed and the Call writing shall keep the trends under check. A rise in Nifty is possible only when it moves above 24500. 

We see a subdued start on Tuesday as there is no clarity in the market at the moment. The RSI is still holding firm hoping for a revival. The strong showing in Nifty has ensured that the targets mentioned last week of 24200 has been achieved opening door towards 24500. One can use the dips to support region to buy into. As trends remain mixed it’s advised to look at the Q4 numbers and plan the trade ahead.

View all stories by Raja Venkatraman here.

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.