Here are three stocks to trade, recommended by NeoTrader’s Raja Venkatraman

Summer: Buy above 234 and dips to ₹215 | Stop ₹210 | Target ₹255-265

JMFINANCIL: Buy above 192 and dips to 178 | Stop 175 | Target 215-220

Asahindia: Buy above 835 on dips to ₹810 | Stop ₹795 | Target ₹905-925

Market recap

Indian benchmarks closed modestly higher on Monday after early gains gave way to profit-booking in IT and FMCG stocks and continued foreign selling. The Sensex rose 76.54 points, or 0.09%, to finish at 80,787.30, having jumped 460.62 points, or 0.57%, intraday to a high of 81,171.38 on strength in auto, oil and private bank names.

The NSE Nifty gained 32.15 points, or 0.13%, settling at 24,773.15 after touching levels above 24,800. Late-session selling trimmed the upside, with the Nifty IT Index slipping 1.6% from its peak and heavyweight IT and consumer staples shares acting as the biggest drags. Trent fell 3.81%, while Asian Paints, HCL Tech, Tech Mahindra, L&T, Tata Consultancy Services, Power Grid, and Sun Pharma also underperformed.

Foreign investors sold equities throughout the session, intensifying pressure on large-cap counters despite appetite in cyclical segments. In contrast, the broader market showed resilience as the Nifty Midcap and Smallcap indices closed with modest gains, highlighting selective strength beyond the front-line gauges.

Outlook for trading

Bulls are at work and are using the depths to resurface at every opportunity available. However, the inability to sustain the trends at higher levels keeps dragging the market. After spending sufficient time in volatility, the gap scenario has derailed the enthusiasm. There are pockets of bullishness that keep springing up, drawing some attention. As we near the end of the current expiry, there are some possibilities of an uptrend to emerge as rollover activity can emerge.

The intraday charts of the Nifty show a ranging action that continues to be curtailed, and attempts to move higher last week could not sustain the upward drive that we saw last week. The strong move that we saw could not last, and the decline thereafter caught everyone by surprise. With moves above 24,700 as anticipated, quickly nullified, we are now looking at some hesitation creeping into the markets. The last few days have witnessed some steady supply at higher levels. Immediate support on the downside is around 24,500, which, if given away, could head towards 24,000.

Overall sentiment continues to remain muted. Hence, it’s best to focus on intraday trading and use a dip buy and sell on rally approach to minimize the risk of participation.

The September series has been quite listless as the large-scale volatility has left every trader and investor bruised and battered. Despite the hope of bullishness triggered by the news flow, the markets have been chopping and turning, thus not giving complete clarity yet. Surviving at higher levels has now become a perennial challenge. The constant turbulence that has been emanating at every level has made it challenging for the market participants to have a stable outlook. Uncertainty, is the underlying theme of the current market scenario. Despite the best efforts to produce a revival, the consistent supply at higher levels shall keep the lid on any recovery. While we have attempted to showcase some solidarity across the Indian hemisphere, there is still a lot of untold misery.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

Suven Life Sciences Ltd (Cmp 233.36)

Summer: Buy above 234 and dips to ₹215 | Stop ₹210 | Target ₹255-265

Why it’s recommended: SUVEN has recently been in a state of sharp decline, and the recent recovery indicates that the decline is now receding. The last two quarters have not been encouraging, but the rebound from lower levels that are emerging indicates that the trends can showcase some robustness. A positive long body candle from supports clearly highlights the intent, and the improving scenario will now push the trends towards a rebound. A fresh uptick in momentum is encouraging.

Key metrics:

P/e: 141.05

52-week high: ₹299.99

Volume: 57.39k

Technical analysis: Support at ₹200, resistance at ₹300.

Risk factors: Regulatory and quality risks, raw material dependency, competition, legal issues, and potential disruptions in manufacturing and R&D.

Buy: above 234 and dips to ₹215.

Target price: ₹255-265 in 1 month.

Stop loss: ₹210.

JM Financial Ltd (Cmp 192.24)

JMFINANCIL: Buy above ₹192 and dips to ₹178 | Stop ₹175 | Target ₹215-220

Why it’s recommended: JM Financial is an integrated and diversified financial services group based in Mumbai with a strong presence across India. The last few days, the prices have been consolidating and the strong push above the value area resistance around 180 augurs well for the prices. As momentum is also providing a favourable tailwind, we can consider some bullish prospects.

Key metrics:

P/e: 28.74

52-week high: ₹199.80

Volume: 8.07M

Technical analysis: Support at ₹169 | resistance at ₹225.

Risk factors: Industry competition, market volatility, and elongated operating tailwind.

Buy: above ₹192 and dips to ₹178.

Target price: ₹215-220 in 1 month.

Stop loss: ₹175.

Asahi India Glass Ltd (Cmp 834.30)

Asahindia: Buy above 835 on dips to ₹810 | Stop ₹795 | Target ₹905-925

Why it’s recommended: Asahi India Glass Ltd (AIS) is a prominent integrated glass solutions company in India. It holds a strong position in both the automotive and architectural glass segments, offering a wide array of products and services. The momentum indicator clearly says that the trends are establishing themselves now, with the prices moving above the cloud. Volumes are also building up, and this can be a good trigger in the coming days.

Key metrics:

P/e: 55.46

52-week high: ₹901

Volume: 102.55K

Technical analysis: Support at ₹760 | Resistance at ₹950.

Risk factors: Potential breaches of safety norms and contract terms, Non-compliance with safety norms and contract terms.

Buy: above ₹835 and dips to ₹810

Target price: ₹905-925 in 1 month.

Stop loss: ₹795.

Raja Venkatraman is co-founder, neotrader.

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.