Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for 1 October:
Punjab National Bank: Buy above ₹113 and dips to ₹105 | Stop ₹102 | Target ₹125-130
L&T Finance: Buy above ₹250 and dips to ₹233 | Stop ₹224 | Target ₹275-285
Metro Brands: Buy above ₹1,290 and dips to ₹1,240 | Stop ₹1,220 | Target ₹1,420-1,460
Stock market recap
On 30 September, the NSE witnessed a volatile session as benchmark indices reversed early gains, with the Nifty slipping 131 points from its intraday high. Market sentiment was dampened by persistent foreign fund outflows and escalating trade concerns, which also pressured the Indian Rupee into its fifth consecutive monthly decline. Despite being undervalued on a trade-weighted basis, the rupee struggled amid widening trade deficits and limited RBI intervention.
The USD/INR pair maintained a bullish technical outlook, with resistance at 89.10 and support at 88.20. Broader market action reflected caution ahead of key global developments, including the US government shutdown and ongoing trade negotiations between the US and India. Sectoral indices showed mixed trends, with defensives outperforming while rate-sensitive stocks faced selling pressure. Traders remained vigilant for foreign flows and currency cues, which are likely to influence the near-term direction. Overall, the session underscored the fragility of sentiment amid macroeconomic headwinds.
Outlook for trading
A strong undercurrent on expiry day helped the Nifty survive the market’s volatility and ensured that the rise sustained above critical support zones, as the market was whipped around quite a bit. Currently, global trends remain the key drivers of sentiment. There isn’t much local news to contain the volatility.
The long body candle moves seen were also reasonably large, bringing in people to stage a steady buying participation throughout the day. Trading, therefore, was quite difficult through the week, and it would have been a wonder if one came out largely unscathed in the week. As one can see, the Daily charts show that prices have trended into strong resistance at the current close and will require additional tailwinds to fuel further upside.
A gradual test of the immediate support zones reveals strong cloud resistance following a significant decline at the start of the week. The supplies at higher levels continue to test confidence, but the recovery emerging from lower levels is signalling that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.
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While trends remain muted, we can observe that the current scenario has shifted to a ranging action, and a possible short covering action may emerge today. Now, we can observe that the Nifty has held above 24,500, which is the immediate support for a bullish revival. Meanwhile, the maximum pain point is at 24,650, which will continue to halt any progress. With the Open Interest data clearly indicating hurdles at higher levels, one should keep tracking a 30-minute range breakout on Wednesday above this level for creating some long.
As indices are not showing a significant decline, one should consider participating in some stock-specific actions.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
PNB (Cmp ₹112.83)
Why it’s recommended: PSU Banks are firing, and the strong long body candle that is being formed with volumes indicates more upward traction. From the charts we can observe that the strong upside was reinforced at the start of the week is helping the prices scale higher. With a strong momentum play in force possibility of more upward traction is available.
Key metrics:
P/E: 8.61,
52-week high: ₹115.75,
Volume: 37.08M.
Technical analysis: Support at ₹107.85 | Resistance at ₹135.
Risk factors: Changes in RBI regulations affecting capital requirements, social risks related to data security and customer privacy remain vulnerabilities.
Buy at: Above ₹113 and dips to ₹105.
Target price: ₹125-130 in 1 month.
Stop loss: ₹102.
LTF (Cmp ₹249.28)
Why it’s recommended: L&T Finance is an Indian non-banking financial company (NBFC) that provides a wide range of financial products and services to both urban and rural customers, including personal loans, home loans, two-wheeler finance, SME loans, and microloans for individuals, farmers, and small businesses.
The charts show constant pullback into support zones of the TS & KS Bands, which are helping the prices stage a strong move to the upside. A steady buying interest on every dip is igniting some bullish enthusiasm. One can look at the prices to move higher as trends are demonstrating a strong upward drive. Can look to go long.
Key metrics:
P/E: 23.71
52-week high: ₹513.30
Volume: 5.77M.
Technical analysis: Support at ₹232 | Resistance at ₹300.
Risk factors: Interest rate fluctuations, credit defaults, and liquidity risk.
Buy at: Above ₹250 and dips to ₹233.
Target price: ₹275-285 in 1 month.
Stop loss: ₹224.
METROBRAND (Cmp ₹1,290.30)
Why it’s recommended: Metro Brands Ltd (METROBRAND) Metro Brands does the speciality retail of footwear and accessories in India, operating its own stores under brands like Metro Shoes, Mochi, and Walkway. Momentum is seen reviving from the neutral zone, which indicates a strong push to the upside. With the long body candle being formed, we can examine how this counter shapes over the next few days. Consider going long.
Key metrics:
P/E: 99.30,
52-week high: ₹1,346.50
Volume: 86.08K.
Technical analysis: Support at ₹1,200 | Resistance at ₹1,500.
Risk factors: Competition can lead to pricing pressure and compliance challenges.
Buy at: Above ₹1,290 and dips to ₹1,240.
Target price: ₹1,420-1,460 in 1 month.
Stop loss: ₹1,220.
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.
