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

ZYDUSWELL: Buy above ₹2,490 and dips to ₹2,350 | Stop ₹2,290 | Target ₹2,650-2,700

CHALET: Buy above ₹1,041 and dips to ₹1,020 | Stop ₹1,010 | Target ₹1,141-1,165

SHOPERSTOP: Buy above ₹552 and dips to ₹530 | Stop ₹520 | Target ₹598-615

Stock market today

Equity benchmark indices gave up early gains on Wednesday as profit-booking at higher levels dragged markets lower. The Sensex, which had surged nearly 500 points in morning trade, slipped nearly 300 points from the day’s high to settle at 81,339.35.

The Nifty, too, retreated below the psychological 25,000 mark to 24,952.75. By 2:40pm, the Sensex was up 242.37 points or 0.3% at 81,343.69, while the Nifty gained 84.15 points or 0.34% at 24,952.75. Market breadth remained positive with 2,195 stocks advancing, 1,517 declining, and 108 remaining unchanged.

The reversal was driven by three factors: weakness in auto stocks as investors booked profits after a recent rally on GST-led price cuts, renewed tariff concerns after reports that US President Trump urged the European Union (EU) to levy steep duties on Chinese goods and extend them to India, and broad-based profit-taking as participants trimmed positions at higher levels.

Outlook for trading

Moving to the charts, we note that the trends have been largely oriented towards trading rather than investing. Hence, from a trading perspective, we can note that the daily charts highlight that the rally into the cloud region has restricted the rise. The trends remain muted and are now getting tired, which could prove to be a threatening blow to the sentiment. The uncertain closing seen in the daily chart of the Nifty in the September series does not bode well for the market.

The trend that is emerging clearly suggests that the rally seen on Wednesday is now encountering the resistance zone, and the gap-up opening ensured that the prices traded into the cloud region. Hence, one should track the trends that are in progress as the upmove needs to continue its way above 25100 (Nifty Spot) to retain the bullish bias. Momentum on hourly charts is indicating that the prices after settling down seem to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels, we can expect the rise to remain hesitant.

For undertaking shorts, we need to see the Nifty move below 24,900 for a potential drop towards 24,750. As per the Open Interest data, a sharp fall is expected once key resistance levels are broken. With the Nifty closing near the Max Pain at 25,000, we should look to approach this expiry with a bullish bias.

If we witness a 30-minute range break on Thursday, we can consider trading on either side. The trends remain tentative, and we expect some resistance to kick in. As the ranging market is in play, we need to be quick in profit-taking, as the trend does not have sufficient steam to move strongly in either direction.

The readings from the Option Data suggest that PCR has moved to 1.05, highlighting that the trends are receiving support at lower levels. This is an important stage with some steady Put writing at 24,800 levels, which continues to prove to be a fuel that can assist recovery and help the buying interest rise.

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

Zydus Wellness Ltd (Cmp ₹2,486.90)

ZYDUSWELL: Buy above ₹2,490 and dips to ₹2,350 | Stop ₹2,270 | Target ₹2,650-2,700

Why it’s recommended: Zydus Wellness Ltd is a prominent Indian consumer wellness company with a global presence, headquartered in Ahmedabad and Mumbai. In the last few days, prices have held the bullish bias, and the possibility of more upward traction has also emerged as it has moved above the recent highs. As momentum remains resolute, one can look at more upside in store in the next few days.

Key metrics:

P/e: 110.30,

52-week high: ₹1,209,

Volume: 202.76k.

Technical analysis: Support at ₹1,975 | Resistance at ₹2,800.

Risk factors: High debt levels and dependence on major customers and economic downturns could impact returns.

Buy at: Above ₹2,490 and dips to ₹2,350.

Target price: ₹2,650-2,700 in one month.

Stop loss: ₹2,270.

Chalet Hotels Ltd (Cmp ₹1,040.30)

CHALET: Buy above ₹1,041 and dips to ₹1,020 | Stop ₹1,010 | Target ₹1,141-1,165

Why it’s recommended: Chalet Hotels Ltd is an Indian company that owns, develops, and manages high-end hotels, resorts, and commercial properties. The prices have spent the last few days in consolidation, and the strong rebound from lower levels has indicated some newfound buying. With a deep foray into AI, the price action highlights some newfound momentum. With robust volume, lead breakout, consider going long at current levels and also on dips.

Key metrics:

P/e: 73.59,

52-week high: ₹1,080

Volume: 214.32k

Technical analysis: Support at ₹850 | Resistance at ₹1,200.

Risk factors: Increased competition, regulatory changes, and sector-specific challenges in the hospitality industry.

Buy at: Above ₹1,041 and dips to ₹1,020.

Target price: ₹1,141-1,165 in one month.

Stop loss: ₹1,010.

Shoppers Stop Ltd (Cmp ₹551.80)

SHOPERSTOP: Buy above ₹552 and dips to ₹530 | Stop ₹520 | Target ₹598-615

Why it’s recommended: Shoppers Stop is India’s premier fashion and beauty retailer, operating a chain of large departmental stores and a significant online presence. With the slow but steady recovery seen in the Consumption space, backed by the GST council recommendations, this counter has been steadily forming a rounding base and is showing an improvement quarter by quarter. The long body candle seen on Tuesday’s dull market has now fuelled more buying interest in the counter. Consider a buy.

Key metrics:

P/e: 532.62,

52-week high: ₹943.65,

Volume: 163.57k.

Technical analysis: Support at ₹475 | Resistance at ₹680.

Risk factors: High debt levels, market volatility, and fluctuations in raw material costs could impact profitability.

Buy at: Above ₹552 and dips to ₹530.

Target price: ₹598-615 in one month.

Stop loss: ₹520.

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.