Best stocks to buy today as recommended by Raja Venkatraman of NeoTrader
LUMAXTECH: Buy CMP and dips to ₹1,150 | Stop: ₹1,135 | Target: ₹1,298-1,335
RSYSTEMS: Buy CMP and dips to ₹420 | Stop: ₹410 | Target: ₹470-490
ASTERDM: Buy above ₹601 and dips to ₹585 | Stop: ₹578 | Target: ₹639-655
The stock market on Tuesday
Stocks opened with renewed selling pressure, with the Nifty 50 slipping below 24,700 to trade about 90 points lower and the Sensex down by about 300 points. Renewed US tariff threats dented sentiment, while the rupee tumbled to a six-month low, intensifying concerns over capital outflows and import costs.
Among movers, IndusInd Bank Ltd bucked the trend, surging 5% after the appointment of a new CEO and managing director, whereas DLF and Aurobindo Pharma traded in the red on earnings.
Market breadth was mixed as the Nifty Smallcap rebounded from intraday lows, but the Nifty Midcap underperformed the gauge.
Attention turns to the weekly expiry of August Sensex futures and options and RBI’s Monetary Policy Committee meeting for cues on volatility and liquidity.
Key results from Bharti Airtel, Adani Ports, Berger Paints, Lupin, Exide Industries, Gujarat Gas, MTAR Technologies, NCC, and Torrent Power guide sector rotations and near-term market direction.
Outlook for trading
Moving to the charts, the trends have been largely oriented towards trading rather than investing. On the daily charts, the KS support area around 24,500, combined with the median line support, has helped prices revive. Also, the support marked at (3) is now beginning to get tired, which could prove to be a blow to investment sentiment. The alternating candles seen in the daily chart of Nifty in the August series does not bode well for the market.
The trend suggests that last week’s rally was holding the resistance zone. The gap-up opening ensured that prices traded above the range area that has developed in recent days. Investors should track ongoing trends as the upmove needs to continue its way above 25,000 (Nifty Spot) to renew the bullish bias.
Momentum on hourly charts indicates that the prices, after settling down, seem to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.
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For undertaking shorts, we need to see the Nifty move below 24,500 for a potential drop towards 24,200 and 24,050, as per the Open Interest data a sharp fall is expected once key resistance levels break. With the Nifty closing below the Max Pain at 24,700 we should look to approach this expiry cautiously.
If we witness a 30-minute range breakdown today, we can consider trading on either side as the trends remain tentative and we expect some resistances to kick in. As a ranging market is in play, we need to be quick in profit-taking as the trend does not have sufficient steam to move strongly in either direction.
Readings from the Option data suggest that PCR has moved to 0.73, indicating that the trends are facing some pressure at higher levels. An important stage with some steady Call writing at the 24,800 level continues to be a hurdle for recovery levels fighting the buying interest at every rise.
At this juncture, we have to pay attention to multiple news triggers—a combination of US tariff threats, cautious investor sentiment, and domestic economic challenges—that have contributed to the sharp market decline and volatility in the rupee.
Three stocks to buy today
Lumax Auto Technologies(Cmp: ₹1,196.60)
LUMAXTECH: Buy CMP and dips to ₹1,150 | Stop: ₹1,135 | Target: ₹1,298-1,335
- Why Lumax Auto is recommended: Lumax Auto Technologies is focusing on innovative technologies like battery electric vehicles (BEVs) and advanced driver assistance systems (ADAS). Further, the acquisition of Greenfuel Energy Solutions has enhanced its growth potential.
The last two days prices are holding a bullish bias. The possibility of more upward traction has also emerged, as the stock has moved above recent highs. As momentum remains resolute, one can expect more upside in the next few days.
- Key metrics
- P/E: 110.30
- 52-week high: ₹1,209
- Volume: 202.76k
- Technical analysis: Support at ₹1,000; resistance at ₹1,400
- Risk factors: High debt levels, dependence on major customers, and economic downturns
- Buy at: CMP and dips to ₹1,150
- Target price: ₹1,298-1,335 in 1 month
- Stop loss: ₹1,135
R Systems International (Cmp: ₹435.15)
RSYSTEMS: Buy CMP and dips to ₹420 | Stop: ₹410 | Target: ₹470-490
- Why R Systems is recommended: R Systems International is a global technology and analytics services company with a strong focus on product engineering and IT services. Its prices spent the last few days in consolidation and the strong rebound from lower levels indicates newfound buying. With the company’s deep entry into artificial intelligence, the price action highlights newfound momentum. With robust volume lead breakout, consider going long at current levels and on dips.
- Key metrics
- P/E: 33.97
- 52-week high: ₹553.10
- Volume: 111.70k
- Technical analysis: Support at ₹370; resistance at ₹550
- Risk factors: Market fluctuations, regulatory changes, and sector-specific challenges in the distribution industry
- Buy at: CMP and dips to ₹420
- Target price: ₹470-490 in 1 month
- Stop loss: ₹410
Aster DM Healthcare (Cmp: ₹600.35)
ASTERDM: Buy above ₹601 and dips to ₹585 | Stop: ₹578 | Target: ₹639-655
- Why Aster is recommended: Aster DM Healthcare is a large, integrated private healthcare provider operating in Gulf Cooperation Council (GCC) countries and India. This counter has been steadily forming a higher high, higher low and is showing an improvement quarter-on-quarter. The long body candle seen on Tuesday’s dull market has fuelled more buying interest in the counter. Consider a buy.
- Key metrics
- P/E: 110.51
- 52-week high: ₹675
- Volume: 948.59k
- Technical analysis: Support at ₹560; resistance at ₹680
- Risk factors: Market volatility and fluctuations in raw material costs could impact profitability
- Buy at: Above ₹601 and dips to ₹585
- Target price: ₹639-655 in 1 month
- Stop loss: ₹578
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.
