The Indian stock markets witnessed a sharp correction on Tuesday as traders booked profits. Sensex plunged 1,301.03 points (1.58%) to 81,128.87, while Nifty declined 341.50 points (1.37%) to 24,583.20.
The downturn followed Monday’s rally, with investors opting for profit booking ahead of the US Consumer Price Index (CPI) inflation report. Technology stocks bore the brunt of the selloff, while heavyweights Infosys, TCS, and HCL Technologies saw 3-4% declines.
Three stocks to buy or sell as recommended by Raja Venkatraman
PBFINTECH (current market price ₹1714.30)
- Why it’s recommended: PB Fintech has recently adjusted its evaluation, indicating a shift in its technical trend towards stabilization. The company reported impressive growth metrics, including a 58.02% increase in net sales and a 41.59% rise in net profit over the last quarter, marking its 11th consecutive quarter of positive results.
- Key metrics: P/E: 320.94; 52-week high: ₹2246.90; Volume: 1.47 M
- Technical analysis: Support at ₹1600, resistance at ₹1900.
- Risk factors: The fintech companies has to face regulation, cybersecurity, financial and business, and reputation.
- Buy: CMP and dips to ₹1661.
- Target price: ₹1850-1885 in 1 month.
- Stop loss: ₹1645.
UNIVCABLES (current market price ₹529.10)
- Why it’s recommended: Universal Cables have been going through a rough patch and the trends are now showing some signs of moving higher . The last few days prices have formed a new base and the recent breakout with volumes augurs wellfor the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.
- Key metrics: P/E: 19.61; 52-week high: ₹939; Volume: 91.43 K
- Technical analysis: Support at ₹425, resistance at ₹640.
- Risk factors: Industry competition , market volatility, elongated operating tailwind.
- Buy: Above ₹530 and dips to ₹510.
- Target price: ₹575-595 in 1 month.
- Stop loss: ₹499.
GRSE (current market price ₹1914.80)
- Why it’s recommended: GRSE is recommended as a potential investment due to its strong performance, positive outlook, and potential for growth in the shipbuilding industry, particularly within the defence sector. Despite recent stock price fluctuations, the company’s long-term track record, and its position as a major player in shipbuilding make it a reliable investment option.
- Key metrics: P/E: 52.85; 52-week high: ₹2833.80; Volume: 2.73 M
- Technical analysis: Support at ₹1750, resistance at ₹2190.
- Risk factors: Potential breaches of safety norms and contract terms, Non-compliance with safety norms and contract terms.
- Buy: above ₹1915 and dips to ₹1850.
- Target price: ₹2045-2095 in 1 month.
- Stop loss: ₹1840.
Outlook for Trading
Volatility continues to hurt market sentiment amid absence of clarity on either side of the trend. The constant selling pressure is keeping a lid on every rise of the Nifty. At the moment, the highs at 24800 will remain an important point to consider. With the market unable to retain the bullish stance we need to be careful as we move ahead into the week.
We had highlighted the possibility of a reaction and identified the levels around 24600 as a good area to consider for a long position and any move below 24500 would be a surrender. However, as trends remain buoyant, we should be looking at a potential revival. The dip into the support region mentioned on the charts found some good buying interest coming into it and could now generate some revival as the RSI is seen holding the 40 levels and hinting at some rebound to the way up.
We are now observing that the Max Pain Point has shifted to 24550. The PCR remains supressed below 1, indicating that the selling pressure has stepped up once again. As trends are unclear and the bullish bias seen on Monday are not seen triggering some positive vibes, it is time to be alert.
Also Read: Pidilite’s growth gets stickier, but valuation a sore spot
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.
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