On Monday, India’s benchmark indices staged a strong turnaround after an early slip. The Sensex rebounded from a morning low of 81,609 to finish about 378 points (0.46%) higher at 82,136 points, while the Nifty clawed back from 24,900 to trade near 25,066 (up 0.39%) by late morning.
The market’s rangebound scenario, however, remains an important challenge to address as the failure to move higher is a cause of worry. While the inability of the trends to head lower awaits some triggers amid this environment we need to muster enough courage to keep us going.
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Tuesday, 22 July.
Best stocks to buy today
SCHAEFFLER: Buy CMP and dips to ₹4,190 | Stop: ₹4,160 | Target: ₹4,625-4,775
UTIAMC: Buy CMP and dips to ₹1,431 | Stop: ₹1,405 | Target: ₹1,580-1,640
APTUS: Buy CMP and dips to ₹340 | Stop: ₹335 | Target: ₹385-398
The stock market on Monday
The market rally on Monday was led by banking heavyweights ICICI Bank and HDFC Bank, as ICICI Bank shares jumped 3% on a 15.9% year-on-year rise in Q1 net profit to ₹13,558 crore, and HDFC Bank gained over 2% despite a 1.3% profit dip to ₹16,258 crore, buoyed by strong loan growth guidance.
Positive global cues from a firm Wall Street futures market and gains across Asia—particularly in South Korea’s Kospi and Hong Kong’s Hang Seng—supported risk-on sentiment. Among other top performers were Eternal (+2.8%) on IT hardware demand, Hindalco (+2.5%) on improving aluminium spreads and export prospects, and UltraTech Cement (+2.3%) ahead of monsoon-driven construction activity.
Looking ahead, the market is likely to test resistance near 25,150-25,200 on the Nifty, with key support around 24,900-24,850. Banking and select infrastructure stocks remain attractive on tactical long setups with stops near recent intraday lows. Traders should monitor weekly F&O expiry around the 25,000 level, upcoming Q1 earnings from Infosys for sector rotation signals, and developments in crude oil and RBI commentary for implications on bond yields and banking spreads.
Outlook for trading
Going forward, the story continues to echo mixed sentiments. The much-wanted green patch brought an end to the constant selling pressure that has been unfolding. However, one should consider that the Bank Nifty, which had broken some supports quickly, recovered mainly backed by encouraging results from HDFC Bank and ICICI Bank.
The market remained confused but managed to hold out the supports at around 24,900 and produce a dramatic revival. The week began on a weak note drawing people to go short. However, strong support zones combined with heavy Put writing around the 24,900 zone came to the rescue to bring about a sterling recovery.
The revival does indicate that the upward drive will continue to be measured as the market has now witnessed many revival attempts. During the past few weeks, whenever there was a recovery, the attempt got nullified rather quickly.
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We are now observing that the Max Pain Point has shifted to 25,100 as the PCR remains suppressed well below 1, indicating that the selling pressure has cooled off. As trends are spending some time to hold on to the bullish bias seen on Monday, we continue to witness some encouraging triggers, thus leading the trends through some challenging times. Time for being alert as trends are getting clearer.
Three stocks to buy today, recommended by NeoTrader’s Raja Venkatraman
Schaeffler India Ltd (Cmp ₹4,282.20)
SCHAEFFLER:Buy CMP and dips to ₹4,190 | Stop: ₹4,160 | Target: ₹4,625-4,775
- Why Schaeffler India is recommended: Schaeffler India recently reported significant turnaround ahead of its quarterly numbers, helping stem a recent decline. Given the encouraging numbers the previous two quarters, we can expect the trends to show some robustness. Also, a positive long body candle highlights that a premium is building up to push the trends towards new highs. A fresh uptick in momentum is encouraging.
- Key metrics
- P/E: 65.88
- 52-week high: ₹4,360.70
- Volume: 158.14K
- Technical analysis: Support at ₹4,100; resistance at ₹4,900
- Risk factors: Demand conditions in urban areas and seasonality headwinds
- Buy: CMP and dips to ₹4,190
- Target price: ₹4,625-4,775 in 1 month
- Stop-loss: ₹4,160
UTI Asset Management Co. Ltd (Cmp 1471.10)
UTIAMC:Buy CMP and dips to 1431 stop 1405 target 1580-1640
- Why UTI Asset Management is recommended: Asset management company stocks have been performing quite well, and taking a cue from HDFC AMC, UTI AMC has managed to demonstrate a trended action the last few weeks. But despite the strong push backed by volumes we will encounter some periods of consolidation. As momentum is also picking up, providing a favourable tailwind, we can consider some bullish prospects.
- Key metrics
- P/E: 28.85
- 52-week high: ₹1,450.25
- Volume: 491.39K
- Technical analysis: Support at ₹1,340; resistance at ₹1,750
- Risk factors: Industry competition, market volatility, elongated operating tailwind
- Buy: CMP and dips to ₹1,431
- Target price: ₹1,580-1,640 in 1 month
- Stop-loss: ₹1,405
Aptus Value Housing Finance India Ltd (Cmp 352.35)
APTUS :Buy CMP and dips to ₹340 | Stop: ₹335 | Target: ₹385-398
- Why Aptus is recommended: Aptus has been going through a rough patch and the rounding pattern backed by volumes are suggesting a trended action. The last few days the prices have been indicating a strong push above value area resistance around ₹347, which augurs well for the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.
- Key metrics
- P/E: 30.61
- 52-week high: ₹401.65
- Volume: 953.91K
- Technical analysis: Support at ₹310; resistance at ₹450
- Risk factors: Industry competition, market volatility, elongated operating tailwind
- Buy: CMP and dips to ₹340
- Target price: ₹385-398 in 1 month
- Stop-loss: ₹335
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.
