Three stocks to trade, as recommended by NeoTrader’s Raja Venkatraman for 14 November
FACT (current price: ₹905)
Buy above ₹905, stop ₹875, target ₹985 (multiday)
Why it’s recommended: Fertilisers and Chemicals Travancore Limited (FACT) is an Indian central public sector undertaking that pioneered large-scale fertilizer production in the country. After a brief consolidation a slow decline below the cloud the prices are hinting at possible upside. After generating some support around 860, the stock price is steadily heading higher. It took supports at these levels and is showing a revival in momentum supported by steady volumes, highlighting the possibility of more upward traction.
Key metrics:
P/E: 563.83
52-week high: ₹1,112
Volume: 146.84M
Technical analysis: Support at ₹825, resistance at ₹530
Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns.
Buy: above ₹905
Target price: ₹875 in 2 months
Stop loss: ₹985
LAURUSLABS (current price ₹997)
Buy above ₹1,002, stop ₹985, target ₹1,035 (intraday)
Why it’s recommended: Laurus Labs Limited is a science-led, integrated pharmaceutical and biotechnology company headquartered in Hyderabad, India. The slow and steady rise since October has not given up and after the consolidation, we are seeing a strong surge. With the TS levels holding on in the last two days one could look to go long at current levels.
Key metrics:
P/E: 78.83
52-week high: ₹1,005
Volume: 1.04M
Technical analysis: Support at ₹925, resistance at ₹1050
Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts.
Buy: above ₹1,002
Target price: ₹1,035
Stop loss: ₹975
KEI (current price: ₹4,113.60)
Buy above ₹4,115, stop ₹4,075, target ₹4,195 (intraday)
Why it’s recommended: KEI Industries Ltd. is a prominent Indian manufacturer of wires and cables, that has evolved into a global end-to-end solutions provider, serving customers in over 60 countries through a vast network of channel partners. The stock has been declining, but a strong rebound in the past few days suggests some upward traction. The rise after time spent at the TS Bands over the past eight days is generating steady demand on lower timeframes. On back of robust results, the strong upmove signals possibility of more upward traction. Consider a long opportunity.
Key metrics:
P/E: 49.71
52-week high: ₹4,699
Volume: 83.24K
Technical analysis: Support at ₹3,970, resistance at ₹4,300
Risk factors: Raw material price volatility, intense competition, and fluctuations in foreign currency exchange rates.
Buy: above ₹4,115
Target price: ₹4,075
Stop loss: ₹4,195
How the stock market performed on Thursday
On 13 November, the benchmark equity indices had a volatile session as early gains were erased by profit booking ahead of the Bihar election results. The Sensex climbed to an intraday high of 84,919.43, up 452.92 points or 0.53%, while the Nifty briefly crossed the 26,000 mark for the first time since October 30, touching 26,010.70, up 0.52%.
However, selling pressure intensified after 2 pm, dragging the Sensex down nearly 300 points from its peak to 84,439.85, down 26.66 points or 0.032%, and the Nifty to 25,880.20, up just 4.40 points or 0.017%.
Among the Nifty 50 constituents, Eternal, Tata Motors, and Mahindra & Mahindra were the top laggards, shedding up to 3%, while Asian Paints and Hindalco Industries led the gainers, rising up to 4%. Market breadth turned negative, with 1,724 stocks advancing, 2,078 declining, and 127 remaining unchanged, reflecting cautious sentiment amid political uncertainty.
Outlook for trading
After a positive start, the trends continued to show some hesitation, partly due to geopolitical tensions and Bihar election. The market continues to show that we could expect some bullish moves. The revival seen this week shows overall sentiment continues to favour the buyers.
As we can see on the charts, the markets moved very much in line to challenge the resistance zone highlighted yesterday and close lower. Markets remained cautious ahead of the Bihar election results on Friday. Exit polls indicated that the ruling National Democratic Alliance (NDA) may retain power. With domestic equities seeing some consolidation near current levels, we need to wait until the results are announced.
On the charts we can see that the supply zone has been broken and the potential to move higher has now gained more strength. Taking cues from options data, we can see the resistance level has shifted up from 25,850 to 26,000, and despite strong selling pressure at 26,000, the Put-Call Ratio (PCR) remaining above 1 suggests the bullish trend is still resilient.
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We maintain that the dip presents a buying opportunity and one should hold on to the bullish bias as the gap region now around 25,700 could act as a support zone for the reaction that may emerge in the coming sessions. Even on Wednesday, the early morning dips drew buying interest, fuelling a strong surge. With Open Interest data clearly indicating that hurdles remains at 26,000, we can continue to look at a 30-minute range breakout for creating some longs for a run to 26,200.
Register for Mint Extraclass for more tips and advice on how to trade in the stock markets. The next session will be held on 13 November.
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.
