The challenge continues to persist at higher levels, with markets still struggling to find stable ground. As profit booking remains the dominant theme, investors must tread cautiously. Global cues continue to be a drag, and they are likely to remain a key pressure point in the near term.
Here are two stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Monday, 19 May.
WSTCSTPAPR: Buy CMP and dips to ₹460, stop ₹450 target ₹520- 540
NEWGEN: Buy above ₹1165 and dips to 1140, stop 1130 target ₹1275- 1295
Stock market on 16 May
After Thursday’s surge, the broader markets saw a lacklustre Friday as benchmarks slipped slightly in the absence of fresh catalysts. The Nifty settled at 25,019.80, down 0.17%, as consolidation in heavyweight stocks across sectors capped gains and led to a lethargic trading session.
On the sectoral front, performance was mixed. Realty, energy, and auto stocks posted modest gains, while the IT sector saw profit booking and declined nearly 1%. Interestingly, the broader indices outperformed the benchmarks, supported by continued interest in themes like defence and railways.
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The recovery in broader markets brought more comfort to investors than the minor pullback in the headline index. Sustained FII inflows and steady global cues are lending support to sentiment. Going ahead, market direction will likely be shaped by corporate earnings and global trends in the absence of any major domestic triggers.
Outlook for trading
While the markets remain cautious, there’s still a clear undertone of optimism—evident in the Nifty’s ability to hold above the 25,000 mark. As we head into a new week, supportive global cues are setting the stage for a positive start. A gap-up opening on Monday looks likely, but the real challenge will be sustaining the momentum and building on it.
The technical setup offers encouraging signs. Friday’s dip towards the 24,500 zone was met with buying support, and the strong close above 25,000—alongside the absence of aggressive selling pressure—suggests that the market may be preparing for an upward move. Intraday charts also reflect strength, bolstered by positive news flow around earnings and geopolitics.
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That said, option data indicates some hesitation. The Put-Call Ratio (PCR) for the Nifty stands at 0.73 and at 0.90 for the Bank Nifty, reflecting a cautious stance in the derivatives segment. While the broader trend continues to lean bullish, a decisive trigger is still awaited for confirmation.
Until then, every positive move should be seen as a promising sign—but not yet a full-fledged breakout.
Two stocks to trade, recommended by Raja Venkatraman:
WSTCSTPAPR (Cmp 477.80)
WSTCSTPAPR: Buy CMP and dips to ₹460, stop ₹450 target ₹520- 540
- Why it’s recommended: WSTCSTPAPR has been showing some keen interest to step up the buying interest with its high management efficiency and its ability to service its debt. This was demonstrated in the last quarterly numbers where the prices had a sharp decline and since then there has been a steady recovery. After moving in a channel formation the prices have broken out of the channel hinting at a potential upward move.
- Key metrics:
- P/E: 8.16
- 52-week high: ₹753
- Volume: 76.91 K
- Technical analysis: Support at ₹450, resistance at ₹800.
- Risk factors: Raw material price volatility, competitive pressures, potential disruptions from digital alternatives, and economic fluctuations impacting demand for paper products.
- Buy: CMP and dips to ₹460.
- Target price: ₹520-540 in 1 month.
- Stop loss: ₹450.
NEWGEN: (Cmp 1158.95)
NEWGEN: Buy above ₹1165 and dips to 1140, stop 1130 target ₹1275- 1295
- Why it’s recommended: NEWGEN software bottomed out on April 7 after the Trump Tariff broke out to stage a remarkable recovery. In the process the prices were able to move above key resistance levels around 1100 and encouraging new flow on IT sectors after the pause helped the upward drift stabilise. Now with a positive Q4 emerging the tailwind can carry the pries higher.
- Key metrics:
- P/E: 52.06
- 52-week high: ₹1799
- Volume: 308.75 K
- Technical analysis: Support at ₹777, resistance at ₹932.
- Risk factors: Intense competition , Intellectual property infringement claims
- Buy: above 1165 and dips to ₹1140.
- Target price: ₹1275 – 1295 in 1 month.
- Stop loss: ₹1130.
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.
