Best stocks to trade today, recommended by NeoTrader’s Raja Venkatraman

Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Thursday, 21 August

FACT: Buy above ₹1,015 and on dips to ₹980, stop ₹965, target ₹1,125-1,150

CHALET: Buy at CMP and on dips to ₹965, stop ₹950, target ₹1,070-1,098

EMAMILTD: Buy at CMP and on dips to ₹606, stop ₹590, target ₹680-700

How the stock market performed on Wednesday

Dalal Street extended its winning streak to a fifth straight session on Wednesday as investors cheered the government’s plan to rationalise the Goods and Services Tax (GST).

The Sensex climbed 213.45 points or 0.26% to close at 81,857.84, while the Nifty gained 69.90 points or 0.28% to settle at 25,050.55. Market breadth was positive, with 2,071 shares advancing, 1,588 declining, and 124 unchanged.

The current rally also reflects optimism about pre-Diwali GST reforms that may stimulate demand for automobiles, FMCG, insurance, and select financial stocks. An improvement in India-China ties has buoyed sentiment. However, the rally depends on many factors, mainly US tariffs, so, investors are walking a tightrope.

Outlook for trading

The gap area highlighted yesterday continues to support the trends, which have been largely oriented towards trading rather than investing. From a trading perspective we can see on the daily charts that the gap support area has helped prices rebound. The gradual rise we saw last week is now set to continue as we trade into the weekly expiry today.

The emerging trend clearly suggests that the rally last week was a holding the resistance zone and a gap-up opening ensured that the prices traded above that range. The move above 25,000 (Nifty Spot) signals a bullish bias. Momentum on hourly charts indicates that the market seems to have absorbed the selling pressure. However, we can expect the rise to remain hesitant as the bearish overhang continues.

We continue to maintain short positions in the Nifty so long as 24,800 holds, viewing any sustained move below that level as a clear sign that bullish conviction is waning. What had previously been support around 24,500 has now shifted up to 24,800, while open interest peaking at 25,200 marks the next significant resistance zone.

If the index breaks down from its current 30-minute range on Wednesday, we can pivot to two-way trades, but until then the trend remains in a tentative standoff. Geopolitical uncertainty still looms large, limiting the market’s ability to muster strong directional moves, so be prepared to lock in gains quickly.

At the same time, monitor FII/DII flow data for shifts in institutional sentiment, watch US yields and crude‐oil volatility for potential catalysts, leverage intraday volatility heatmaps to spot pockets of expanding risk, and consider short-tenor option structures—such as one-week iron condors—to capitalize on muted directional conviction.

Options data suggests that PCR has now moved comfortably above 1, highlighting that the trends are showing intention to move higher. Steady put writing at 25,000 to 24,800 levels continues absorb the bearish bias and help the recovery.

We must now watch out for multiple news triggers as global tariff threats, cautious investor sentiment, and domestic economic challenges have contributed to the sharp market decline and volatility in the rupee.

Three stocks to trade today, recommended by NeoTrader’s Raja Venkatraman

FACT (Cmp 1014.45)

Buy above ₹1,015 and on dips to ₹980, stop ₹965, target ₹,1125-1,150

• Why it’s recommended: The Fertilizers and Chemicals Travancore Limited (FACT) is an Indian central public sector undertaking headquartered in Kochi, Kerala. It was incorporated in 1943 and is the first fertilizer manufacturing company in independent India. The long body candle seen on Wednesday indicates that the prices are holding the bullish bias. The possibility of more upward traction has also emerged on the higher timeframe. As momentum remains resolute one expect more upside in the next few days.
• Key metrics:
  • P/E: 696.98
  • 52-week high: ₹594.70
  • Volume: 1.35M
• Technical analysis: Support at ₹841, resistance at ₹,1150
• Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
• Buy at: CMP and dips to ₹98
• Target price: ₹1125-1150 in one month
• Stop loss: ₹965

CHALET (Cmp 998)

Buy at CMP and on dips to ₹965, stop ₹950, target ₹1,070-1,098

• Why it’s recommended: Chalet Hotels Ltd is an Indian hospitality company that owns, develops, asset managers, and operates high-end hotels and hotel-led mixed-use developments in metro cities across India. Prices have been consolidating since the start of May and in thepast few days have taken support at the TS & KS bands. The rounding pattern breakout on Wednesday highlights newfound momentum. With robust volume lead breakout, consider going long at current levels and on dips.
• Key metrics:
  • P/E: 70.67
  • 52-week high: ₹1,080
  • Volume: 1.54M
• Technical analysis: Support at ₹850, resistance at ₹1,200
• Risk factors: Fluctuating hotel room prices
• Buy at: CMP and on dips to ₹965
• Target price: ₹1,070-1,098 in one month
• Stop loss: ₹950

EMAMILTD (Cmp 626.55)

Buy at CMP and on dips to ₹606, stop ₹590, target ₹680-700

• Why it’s recommended: Emami is an Indian FMCG company known for its personal care and healthcare products. The stock has been forming steady rounding pattern at lower levels after some initial profit-booking. The strong surge on Wednesday augurs well as a reversal. Consider a buy.
• Key metrics:
  • P/E: 32.30
  • 52-week high: ₹855.60
  • Volume: 902.64K
• Technical analysis: Support at ₹560, resistance at ₹900
• Risk factors: Potential corporate actions, like divestments, profitability
• Buy at: CMP and dips to ₹606
• Target price: ₹680-700 in one month
• Stop loss: ₹590

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.