On Monday, Nifty slipped below the 26,000 mark to end at 25,959.50, and the Sensex lost 331 points to settle at 84,900.71 as expiry blues set in to reset the bullish enthusiasm. With a lack of cues and the volatile nature of the markets, the days ahead look challenging.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
TECHM (Cmp ₹1,494.70)
TECHM: Buy above ₹1500, stop ₹1460 target ₹1578(Multiday)
- Why it’s recommended: Tech Mahindra Limited (TECHM) is an Indian multinational information technology (IT) services and consulting company that is part of the extensive Mahindra Group conglomerate. On the daily charts, we observe that prices have formed a strong base and attracted significant buying interest, resulting in a strong push above the cloud region. With the rise in RSI above 60, one can consider the move playing out over the next few days. Go long.
- Key metrics:
- P/E: 37.37,
- 52-week high: ₹1807.40,
- Volume: 6.81M.
- Technical analysis: Support at ₹1425, resistance at ₹1600.
- Risk factors: Supplier and revenue concentration,foreign exchange (forex) risk, and inability to attract/retain talent.
- Buy : above ₹1500.
- Target price: ₹1570 in 2 months.
- Stop loss: ₹1470.
BAJAJAUTO (Cmp ₹9,007.50)
BAJAJAUTO: Buy above ₹9020, stop ₹8900 target ₹9245 (Intraday)
- Why it’s recommended: Bajaj Auto Limited is a globally recognized Indian company that develops, manufactures, and distributes motorcycles, commercial vehicles, and electric vehicles. A strong bullish undercurrent in this counter continues to push the prices higher. With the recent value area support around 8700 being held possibility of a revival can be seen here with intraday momentum working towards a revival. As the negative DI inches lower, we can look for some revival as bearish sentiment steps away in the next few days.
- Key metrics:
- P/E: 28.78,
- 52-week high: ₹9635.60
- Volume: 466.20K.
- Technical analysis: Support at ₹8630, resistance at ₹9750.
- Risk factors: Intense Competition,Export Volatility and Geopolitical Risks.
- Buy : above ₹9020.
- Target price: ₹9245.
- Stop loss: ₹8900.
MCX (Cmp ₹9,865.50)
MCX: Buy above below ₹9880, stop ₹9750 target ₹10100 (Intraday)
- Why it’s recommended: Multi-Commodity Exchange of India Ltd (MCX) is an Indian commodity exchange that provides a platform for online trading of various commodity futures. The stock has been steadily inching higher and the brief consolidation seen in November is now releasing into a fresh uptrend as every dip into the TS & KS region has found some steady buying interest. A look at RSI is seen inching higher as it maintains itself above 60 levels. The strong closing on Monday augurs well for the prices.
- Key metrics:
- P/E: 93.66,
- 52-week high: ₹9975,
- volume: 449.86K.
- Technical analysis: Support at ₹9300, resistance at ₹10500.
- Risk factors: Intense competition,asset quality concerns and regulatory changes.
- Buy : above ₹9880.
- Target price: ₹10100.
- Stop loss: ₹9750.
Stock Market Recap
On Monday, Indian equity markets closed lower in a volatile session, with the Nifty slipping below the 26,000 mark to end at 25,959.50 and the Sensex losing 331 points to settle at 84,900.71.
The day’s trade was marked by profit-booking across most sectors, reflecting cautious sentiment after recent highs. IT stocks provided some support, with Infosys and Wipro among the notable gainers, alongside Tech Mahindra, Eicher Motors, and Bajaj Auto. In contrast, heavyweights such as ICICI Bank and HDFC Bank dragged indices down, while JSW Steel, Bharat Electronics, Max Healthcare, M&M, and Power Grid Corp featured among the key losers.
Sectoral breadth remained weak, with all major indices except FMCG finishing in the red; metals, realty, PSU banks, and capital goods declined between 1–2%. Broader markets underperformed, as the BSE midcap index slipped 0.3% and the smallcap index fell 0.7%, underscoring continued unwinding at higher levels. This cautious close highlights investor hesitancy amid global uncertainties and domestic profit-taking.
Outlook for Trading
After some strong trends that were demonstrated few days ago the widespread profit booking undoing all the efforts that were made to retain the bullish bias. With some sudden capitulation ahead of the expiry the dream of a new high being formed in the current . As markets continue to hesitate at higher levels to form a new high the predicament shall remain for some more sessions. As the higher levels are attracting steady profit booking one should be looking to manage the trade.
Currently we are looking at the trends showing some possibility of a revival from here on as the overall market continues to remain challenged. At the moment the lack of clarity keeps the traders in the dark and is now creating hurdles for every rise seen in the charts.
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The problem has escalated after the Indian rupee hit a record low level on Friday, before rebounding slightly. The Indian currency is reportedly witnessing significant market intervention from the Reserve Bank of India (RBI). We are noting that over the last two days, the weakening due to uncertainty has cooled off and could now lead to some consolidation of the currency.
One should continue to retain the bullish bias despite some profit booking seen. As seen from the charts above, the sharp fall on Monday has trended into some strong support at the TS line. Further, cues from the Option Data are now standing at an interesting point. The sharp fall has seen the Nifty going into an oversold position that is hinting at the Nifty could now rebound, and one should also factor in that a dip buy zone has emerged yesterday. The Max Pain remains at 26000 level,s hinting at a possible revival.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
TECHM (Cmp 1494.70)
TECHM: Buy above ₹1500, stop ₹1460 target ₹1578(Multiday)
- Why it’s recommended: Tech Mahindra Limited (TECHM) is an Indian multinational information technology (IT) services and consulting company that is part of the extensive Mahindra Group conglomerate. On the daily charts, we note that the prices have made a strong base and have attracted strong buying interest, thus leading to a strong push above the cloud region. With the rise in RSI above 60 one can consider the move playing out over the next few days. Go long.
- Key metrics:
- P/E: 37.37,
- 52-week high: ₹1807.40,
- Volume: 6.81M.
- Technical analysis: Support at ₹1425, resistance at ₹1600.
- Risk factors: Supplier and revenue concentration, foreign exchange (forex) risk and inability to attract/retain talent.
- Buy: above ₹1500.
- Target price: ₹1570 in 2 months.
- Stop loss: ₹1470.
BAJAJAUTO (Cmp 9007.50)
BAJAJAUTO: Buy above ₹9020, stop ₹8900 target ₹9245 (Intraday)
- Why it’s recommended: Bajaj Auto Limited is a globally recognized Indian company that develops, manufactures, and distributes motorcycles, commercial vehicles, and electric vehicles. Strong bullish undercurrent in this counter continues to push the prices higher. With the recent value area support around 8700 being held possibility of a revival can be seen here with intraday momentum working towards a revival. As the negative DI inches lower, we can look for some revival as bearish sentiment steps away in the next few days.
- Key metrics:
- P/E: 28.78,
- 52-week high: ₹9635.60
- Volume: 466.20K.
- Technical analysis: Support at ₹8630, resistance at ₹9750.
- Risk factors: Intense Competition, Export Volatility and Geopolitical Risks.
- Buy : above ₹9020.
- Target price: ₹9245.
- Stop loss: ₹8900.
MCX (Cmp 9865.50)
MCX: Buy above below ₹9880, stop ₹9750 target ₹10100 (Intraday)
- Why it’s recommended: Multi Commodity Exchange of India Ltd (MCX) is an Indian commodity exchange that provides a platform for online trading of various commodity futures. The stock has been steadily inching higher and the brief consolidation seen in November is now releasing into a fresh uptrend as every dip into the TS & KS region has found some steady buying interest. A look at RSI is seen inching higher as it maintaining itself above 60 levels. The strong closing on Monday augurs well for the prices.
- Key metrics:
- P/E: 93.66,
- 52-week high: ₹9975,
- volume: 449.86K.
- Technical analysis: Support at ₹9300, resistance at ₹10500.
- Risk factors: Intense competition, asset quality concerns and regulatory changes.
- Buy : above ₹9880.
- Target price: ₹10100.
- Stop loss: ₹9750.
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.
