Improving macro conditions helped India’s stock markets revive on Wednesday. This was a positive trigger that encouraged market participants as they slowly but steadily participated towards the close of the session. While hesitation continues to weigh in, the sentiment is clearly fragile.
Here are three stocks to buy on Thursday, 14 August, as recommended by NeoTrader’s Raja Venkatraman.
Best stocks to buy today
Godawari Power and Ispat Ltd: Buy above ₹205 and dips to ₹195 | Stop: ₹192 | Target: ₹225-235
Syngene International: Buy CMP and dips to ₹640 | Stop: ₹630 | Target: ₹705-730
Kajaria Ceramics Ltd: Buy above ₹1,275 and dips to ₹1,250 | Stop: ₹1,240 | Target: ₹1,375-1,410
The stock market on Wednesday
Indian benchmarks snapped back on 13 August, reversing the previous session’s losses as buying swept across auto, metal, and pharma scrips. The Nifty 50 reclaimed the 24,600 level to finish at 24,619.35, up 131.95 points (0.54%), while the Sensex closed at 80,539.91, gaining 304.32 points (0.38%). Midcap and small-cap indices each rose 0.5%.
Key drivers included a cooler-than-expected US July CPI reading of 2.7% and India’s retail inflation cooling to an eight-year low of 1.6%. These readings bolstered the case for rate cuts by both the Federal Reserve and the Reserve Bank of India.
Buoyed by positive global cues, markets opened firmly and stayed in positive territory throughout the session. Leadership came from cyclical sectors, with auto, metals and pharmaceuticals registering the strongest gains.
Outlook for trading
After some fast-paced decline triggered by the geopolitical tensions the market tested our patience last Friday. However, the rebound seen this week indicates that Nifty did not give up the lower levels, as the overall sentiment continues to favour the buyers.
As we can note on the charts the markets moved very much in line to head lower as the trends could not muster enough momentum. On the charts we note that the median line has been broken and potential to move lower has now opened.
Taking some cues from the Option data, we can add that the higher levels around 24,500 that had steady Call writers have now moved to 24,700. The lower side remains open with some meaningful Put writing at 24,500-24,400, highlighting that if the selling steps up there is some OI to absorb the negative bias.
The emerging trend clearly suggests that the dips seen last week managed to hold the support zone and the gap-down opening was covered to ensure that the prices traded above the range area that developed in the last few days. Hence, one should track the trends that are in progress as the up-move needs to continue its way above 24,700 (Nifty Spot) to renew the bullish bias.
Momentums on hourly charts indicate that the prices are taking a breather as selling pressure has receded for now. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.
For undertaking shorts, we need to see the Nifty move above 24,700, which is the immediate resistance as per the Open Interest data. If we witness a 30-minute range breakout on Thursday we can consider trading on either side as the trends still remain tentative, where we expect some resistances to kick in. We are entering a long weekend with the weekly expiry so one can expect some volatile scenario to kick in.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Godawari Power and Ispat Ltd (Current market price: ₹204.29)
GPIL: Buy above ₹205 and dips to ₹195 | Stop: ₹192 | Target: ₹225-235
- Why Godawari Power is recommended: After spending a lot of time in consolidation, the trends in the Godawari Power counter have come out of a recent challenge. With a strong thrust above the cloud the prices are hinting at a possible upside in the counter. After facing some resistance around the ₹195 region, the prices are steadily heading higher. Post surpassing this level, the rise in momentum supported by steady volumes highlights the possibility of more upward traction.
- Key metrics
- P/E: 19.64,
- 52-week high: ₹253.60
- Volume: 3.61m
- Technical analysis: Support at ₹175; resistance at ₹300
- Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
- Buy at: CMP and dips to ₹195
- Target price: ₹225-235 in 1 month
- Stop loss: ₹192
Syngene International Ltd (Current market price: ₹659.15)
SYNGENE: Buy CMP and dips to ₹640 | Stop: ₹630 | Target: ₹705-730
- Why Syngene is recommended: Syngene is a leading contract research, development, and manufacturing organization in India, specializing in providing integrated drug discovery and development services to the global pharmaceutical, biotechnology, nutrition, animal health, and specialty chemical sectors.
The sharp decline after a moderate rise post its results is finding some strong support at the TS & KS levels. With some revival seen in the last two days one can look at going long at current levels and also on dips.
- Key metrics
- P/E: 56.74
- 52-week high: ₹960
- Volume: 531.76k
- Technical analysis: Support at ₹620; resistance at ₹750
- Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts
- Buy at: CMP and dips to ₹640
- Target price: ₹705-730 in 1 month
- Stop loss: ₹630
Kajaria Ceramics Ltd (Current market price: ₹1,274.80)
KAJARIACER: Buy above ₹1,275 and dips to ₹1,250 | Stop: ₹1,240 | Target: ₹1,375-1,410
- Why Kajaria Ceramics is recommended: The Kajaria Ceramics stock had been undergoing some steady upward trajectory. The pullback into the TS & KS bands since the last eight days is generating steady demand at lower levels. On the back of robust results, the strong up-move seen in the prices signal the possibility of more upward traction. Consider a long opportunity.
- Key metrics
- P/E: 93.06
- 52-week high: ₹1578.25
- Volume: 204.65k
- Technical analysis: Support at ₹1,160; resistance at ₹1,500
- Risk factors: Sluggish growth, negative quarterly results, and reduced institutional investor participation
- Buy at: Above ₹1,275 and dips to ₹1,250
- Target price: ₹1,375-1,410 in 1 month
- Stop loss: ₹1,240
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.
