Three stocks to trade as recommended by Raja Venkatraman of NeoTrader for 22 September:
EDELWEISS: Buy above ₹120 and dips to ₹110 | Stop ₹105 | Target ₹135-140
KIRLOSENG: Buy above ₹965 and dips to ₹925 | Stop ₹898 | Target ₹1,125-1,150
RADICO: Buy above ₹3,050 and on dips to ₹2,980 with stop below ₹2,950 target ₹3,200-3,300
How the stock market performed on 19 September
Indian equity markets ended lower on Friday, snapping a three-day winning run as selling pressure weighed on FMCG, IT, and banking stocks. The Nifty 50 slipped under 25,350 to close at 25,327.05, down 96.55 points or 0.38%. The Sensex fell 387.73 points, or 0.47%, to 82,626.23. Despite a weak start that pushed Nifty below 25,300, mid-session buying trimmed losses. At close, the BSE Midcap and Smallcap indices were flat.
Sector-wise, consumer durables, media, auto, FMCG, and IT led declines of 0.4-0.6%, while realty, oil and gas, power, and PSU banks rose 1% each. Among Nifty constituents, HCL Technologies, ICICI Bank, Nestle, Titan, and Trent were the biggest laggards, while Adani Enterprises, Adani Ports, SBI Life Insurance, and Shriram Finance topped gains. On a weekly basis, the Nifty and the Sensex each gained nearly 1%, with mid- and small-caps outpacing them—rising 1.5–2%—supported by a 25-bps US Fed rate cut boosting global equities.
Outlook for trading
We have been speaking about the need for the Nifty Bank to participate, and this has been one of the missing elements in the last few weeks. The strong push from the Nifty Bank helped the markets stage a splendid rebound, thus casting away any shadow of doubt. This also propelled the Nifty to stage a successful breakout above 25,000 that helped the cause. We are noting the continued challenges at every stage, and the recent charge could now meet some confusion, as the trends are still dependent on the global cues.
Indian equity markets ended lower on Friday, snapping a three-day winning run as selling pressure weighed on FMCG, IT, and banking stocks. The Nifty 50 slipped under 25,350 to close at 25,327.05, down 96.55 points or 0.38%. The Sensex fell 387.73 points, or 0.47%, to 82,626.23. Despite a weak start that pushed the Nifty below 25,300, mid-session buying trimmed losses. At close, the BSE Midcap and Smallcap indices were flat.
The Nifty, after blowing hot and cold throughout the last series, finally held its nerve to produce a strong surge at the end of last week to generate some bullish momentum. Volatility has been the main feature of this series as the range-bound activity produced considerable uncertainty about the continuance of the uptrends. With a wide range expansion seen this week, a slip into a range-bound action is very much on the cards.
With near-term resistances around 25,000 in the Nifty being surpassed and held over the last week, we can expect a run towards a new high while lower support remains at around 24500 as we near expiry. Throughout this series, we have been highlighting that participation is the key, and the approach is to be on the bullish side with a buy at current levels and a buy on dip approach.
In the Nifty, too, long positions can be initiated at current levels or on a decline towards 25,100, which can now be considered for some suitable buying opportunity. Bullish bias needs to be shelved only on the breach of 24,950.
The readings from the Option Data suggest that PCR has now dipped to 0.82, highlighting that the trends continue to face some pressure at higher levels. With Call writing emerging now at 25,400 levels, that could now be a new level to watch out for after we near the end of a steadily rising week.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
Edelweiss Financial Services Ltd (Cmp ₹119.03)
Why it’s recommended: This counter has been trading quite resolutely and has been attempting to sustain at higher levels. The consolidation in the TS & KS region managed to arrest the recent profit booking. The strong surge seen on Friday after the clarification in the media regarding the share sale was backed by volumes, suggesting more possibility to the upside.
Key metrics:
P/E: 110.23
52-week high: ₹145.50
Volume: 13.54M
Technical analysis: Support at ₹725 | Resistance at ₹980.
Risk factors: Market conditions, company performance, and news.
Buy: Above ₹120 and dips to ₹110.
Target price: ₹135-140 in 1 month.
Stop loss: ₹105.
Kirloskar Oil Engines Ltd (Cmp ₹964.65)
Why it’s recommended: Kirloskar Engineering has been steadily forming a rounding pattern at the cloud support to attract some attention. The strong push seen on Friday, along with a combination of factors, can now trigger some potential upside in the coming days. The recent rise in momentum shown by the RSI clearly highlights the steady participation that is prompting more upside potential in this counter.
Key metrics:
P/E: 33.31
52-week high: ₹334.40
Volume: 352.03K
Technical analysis: Support at ₹890 | Resistance at ₹1,200.
Risk factors: Market fluctuations, regulatory changes, and sector-specific challenges in the financial sector.
Buy: Above ₹965 and dips to ₹925.
Target price: ₹1,125-1,150 in 1 month.
Stop loss: ₹898.
Radico Khaitan Ltd (Cmp ₹3052.50)
Why it’s recommended: Positive moves in the market saw this counter recover from cloud support around 2,800 levels. The daily chart reveals that the uptrend has now resumed. There is still enough room left at the top for this counter to surge. Steady ascent with rise in momentum makes it a good buy candidate for the coming week.
Key metrics:
P/E: 101.80
52-week high: ₹3,052.50
Volume: 539.82K.
Technical analysis: Support at ₹2,777 | Resistance at ₹3,500.
Risk factors: Challenging macroeconomic environment, margin pressure and client attrition.
Buy at: Above ₹3,050 and dips to ₹2,980.
Target price: ₹3,200-3,300 in 1 month.
Stop loss: ₹2,950.
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.
