Stocks to buy: Raja Venkatraman recommends three stocks for today — 10 March

The resultant decline that ensued has now once again forced the investors to consider a shift to safer assets like gold amid caution towards riskier investments. On the earnings front, companies are facing downgrades in estimates due to a weak demand environment, margin pressure, and a cautious near-term outlook. The recovery in the curtailed week could be a laboured one.

Outlook for trading

Moving to the charts we note that the trends have been largely oriented towards trading rather than investing. Hence , from a trading perspective we can note that on the hourly charts the gap area highlighted combining with the 61.8% Fibonacci support trendline has helped the prices since start of the last week to stage a move above the cloud region on Friday. 

The trend that is emerging clearly suggests that a rally could be in progress as the markets are still trying to find their way after an extended run in last two months. Momentums on hourly charts are indicating that the prices have now settled down and there seems to be a withdrawal of selling pressure. With the gradual and hesitant rise emerging from supports on Friday we can expect the rise to continue.

For undertaking shorts, we need to see Nifty move below 22500 for a drop once again to 22200 and 22000 as per the Open Interest data 22200 where we see the next set of supports emerging. If we witness a 30-minute range breakout on Monday we can consider to trade on either side as the trends still remain tentative where we expect some resistances to kick in. As ranging market is in play, we need to be quick in profit taking as we the trend does not have sufficient steam to move strongly in either direction.

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The readings from the Option Data suggests that PCR has moved to 0.96, highlighting that the trends are at an important stage with some Put writing at 22500 levels continues to defend the lower levels fighting the sell off at every rise.

At this juncture we have to pay attention to multiple news triggers, the combination of global tariff threats, cautious investor sentiment, and domestic economic challenges contributed to the sharp market decline and volatility in the rupee.

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

• DBCORP: Buy above ₹231, stop ₹224 target ₹255-265

This newspaper stock after undergoing lot of volatility and the Q3 results were found stable and the inability of the bears to drag it lower in this uncertain market speaks well for a strong rounding pattern breakout as buying momentum got built. 

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After biding some time and absorbing the volatility we can look at the prices looking to extend next week. The steady upward bounce has pushed the RSI above 70 indicating the trends could sustain beyond the value area resistance around 225.

• TAJGVK: Buy above ₹490, stop ₹473 target ₹530-540

There has been some steady buying at lower levels as the momentum tried to revival the prices from lower levels. With the cloud region offering some upward thrust the possibility of the counter showing a bullish bias has gone up. Now with the steady upward bias in last few days with the dip into the Ichimoku Bands attracting some buying interest in the last week highlighting some steady resolve to the way up. Buy.

• GLAXO: Buy above ₹2760, stop ₹2725, target ₹2985-3025

Pharma stocks are under pressure and the fall seen in the last few weeks in this counter , there has been a strong rebound in the last month indicating that the bullish momentum could extend. The long body shown at the end of the last rise on Friday suggests that there is more rise possible. The attempt to move higher post the consolidation presents a strong case of bullishness. As Relative Strength Index (RSI) is already showing rebound from 60 levels , we can look to trade long in this counter.

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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.