Strong thrust to the upside has clearly established once again some positive charge in the market. While we await the results of the US Federal Open Market Committee’s meeting, the way ahead seems to be to look at some steady buying opportunities as the corporate results season unfolds. A strong upmove with a buy on dips can be considered in the days ahead.
Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Thursday, 30 October.
Best stocks to buy today (All rates mentioned are of equity market)
HCLTECH: Buy above: ₹1,560 | Stop: ₹1,514 | Target: ₹1,640 (Multiday)
POLYCAB: Buy above: ₹7,740 | Stop: ₹7,660 | Target: ₹7,850 (Intraday)
DELHIVERY: Buy above: ₹485 | Stop: ₹477 | Target: ₹499 (Intraday)
The stock market on Wednesday
On 29 October, the Nifty 50 closed at 26,053.90, up 117.70 points or 0.45%, while the Sensex rose 368.97 points or 0.44% to settle at 84,997.13. Midcap stocks outperformed, with the Nifty Midcap 100 hitting a fresh 52-week high above 60,000. The Nifty Smallcap 100 advanced 0.4%.
Top Nifty gainers included Adani Enterprises, Power Grid Corp, NTPC, Adani Ports, and JSW Steel. On the flip side, Dr Reddy’s Laboratories, Bharat Electronics, Eternal, Mahindra and Mahindra, and Coal India declined.
Sectorally, autos slipped 0.7%, while metals, and oil and gas posted gains of up to 2%, contributing to the overall bullish sentiment.
Outlook for trading
Strong undercurrent on Wednesday helped the Nifty survive the volatility of the market and ensured that the rise sustained above critical support zones, as the market was whipped around quite a bit. At the moment, global trends remain the key drivers of sentiment. There really isn’t much by way of local newsflow to contain the volatility induced.
The long body candle moves seen were also reasonably large, bringing in people to stage a steady buying participation through the day. Trading, therefore, was quite difficult through the week. As one can see from the daily charts, the prices have treaded into strong resistance at the current close, and will need more tailwinds that can fuel more upside.
After a brief consolidation, the gradual break above the consolidation zone highlights a positive start to the series. However, one cannot rule out the possibility of supplies at a higher level. While the market continues to test investor confidence, the recovery that is emerging swiftly on every dip signals that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.
Nifty, which has managed to hold itself above the 26,000 zone, has now opened towards 26,500, which acts as the next big hurdle as the immediate resistance for some bullish moves. With the Open Interest data clearly indicating a revival, one should keep tracking a 30-minute range breakout as trading continues to be an important metric for creating some longs. One should also keep looking at every dip as a buying opportunity.
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As we head into the resistance zones, we could experience some inconsistency profit booking could emerge yet again. As the trends are still circumspect and are witnessing show limited market participation. Nifty now seeks to contest the next resistance around 26,500 mark while Bank Nifty aims to clear 59,000 as Options data are clearly favouring strong bullishness that can persist through the week.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
HCL Technologies Ltd (Current market price: ₹1,557.85)
HCLTECH: Buy above: ₹1,560 | Stop: ₹1,514 | Target: ₹1,640 (Multiday)
- Why it’s recommended: HCL Technologies is an Indian multinational information technology services and consulting company headquartered in Noida. India’s IT sector has been in a decline, and this counter, after some sharp fall since June, has formed a double bottom. But after a strong push in prices seen on Tuesday, we can see that the stock is set for a turnaround. Go long.
- Key metrics
- P/E: 34.88
- 52-week high: ₹2,011
- Volume: 2.6M
- Technical analysis: Support at ₹1,400; resistance at ₹1,650
- Risk factors: Intense competition, reliance on key personnel, global economic slowdowns, and macroeconomic fluctuations.
- Buy: Above ₹1,560
- Target price: ₹1,640
- Stop loss: ₹1,514
Polycab India Ltd (Current market price: ₹7,735.50)
POLYCAB: Buy above: ₹7,740 | Stop: ₹7,660 | Target: ₹7,850 (Intraday)
- Why it’s recommended: Polycab India is an Indian electrical equipment company and the largest manufacturer of wires and cables in the country. With momentum gathering pace we can look at the trends holding and galvanizing into a potential upward possibility in the next few weeks. Can look to go long.
- Key metrics
- P/E: 47.93
- 52-week high: ₹7,794.70
- Volume: 211.94K
- Technical analysis: Support at ₹7,200; resistance at ₹8,000
- Risk factors: Volatile operating margins and penalties for expansion, regulatory risk.
- Buy at: Above ₹7,740
- Target price: ₹7,850
- Stop loss: ₹7,660
Delhivery Ltd (Current market price: 484.70)
DELHIVERY: Buy above: ₹485 | Stop: ₹477 | Target: ₹499 (Intraday)
- Why it’s recommended: Delhivery is an Indian logistics and supply chain company based in Gurugram. The counter has been consolidating for around 3 months. As the logistics sector looks to pick up, we can notice a revival in sentiment that is fuelling prices again. The prices have surpassed the resistance zones around ₹479 backed by volumes, indicating that a positive turnaround is emerging. After the recent test of the Kumo region’s strong closing on Wednesday, we can look at some positive vibes to emerge.
- Key metrics
- P/E: 233.89
- 52-week high: ₹489
- Volume: 3.07M
- Technical analysis: Support at ₹444; resistance at ₹510
- Risk factors: Supplier retention , potential customer acquisition challenges, high interest rates and inflation.
- Buy: Above ₹485
- Target price: ₹477
Stop loss: ₹499
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.
