The equity benchmark indices rallied sharply on Wednesday, with the Sensex climbing over 700 points and the Nifty reclaiming the 25,900 mark, supported by broad-based buying amid firm global cues and upbeat investor sentiment following exit polls projecting a strong NDA comeback.
All major indices traded in the green. IT, financial services, oil & gas, and media stocks led the rally.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
SONACOMS (Cmp ₹497.75)
SONACOMS: Buy above ₹498, stop ₹480 target ₹535 (Multiday)
- Why it’s recommended: Sona BLW Precision Forgings Limited (SONACOMS), often referred to as Sona Comstar, is a leading global mobility technology company that designs, manufactures, and supplies components for both electric and non-electric vehicles. Post a brief consolidation a strong thrust above the cloud the prices are hinting at some possible upside in the counter. After generating some support around 470-480 region the prices are steadily heading higher. Post surpassing this level the rise in momentum supported by steady volumes are highlighting possibility of more upward traction.
- Key metrics:
P/E: 53.47,
52-week high: ₹701,
Volume: 1.45M.
- Technical analysis: Support at ₹460, resistance at ₹530.
- Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns.
- Buy: above ₹498.
- Target price: ₹535 in 2 months.
- Stop loss: ₹480.
STARHEALTH (Cmp ₹497.60)
STARHEALTH: Buy above ₹498, stop ₹487 target ₹515 (Intraday)
- Why it’s recommended: Star Health and Allied Insurance Co. Ltd. is an Indian company and India’s first standalone health insurer, founded in 2006 and headquartered in Chennai. The slow and steady rise since October has not given up and post the consolidation, we are finding the strong surge and this could see some steady upward drive after the rise seen yesterday. With the TS levels holding on in the last two days one can look at going long at current levels.
- Key metrics:
– P/E: 54.90,
52-week high: ₹508.75
Volume: 267.81K.
- Technical analysis: Support at ₹465, resistance at ₹525.
- Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts.
- Buy : above ₹498.
- Target price: ₹487.
- Stop loss: ₹515.
ICICIGI (Cmp ₹2028.60)
- ICICIGI: Buy above 2045, stop ₹2020 target ₹2095 (Intraday)
- Why it’s recommended: ICICI Lombard General Insurance Company Limited is a leading private sector general insurance company in India and a subsidiary of ICICI Bank. The stock has been undergoing some decline and the strong rebound in the last few days are suggesting some upward traction. The rise after some time spent at the TS Bands since last 8 days are generating steady demand in lower timeframes. On back of robust results the strong upmove seen in the prices are signalling possibility of more upward traction. Consider a long opportunity.
- Key metrics:
P/E: 36.12,
52-week high: ₹2074.85,
volume: 504.40K.
- Technical analysis: Support at ₹1950, resistance at ₹2100.
- Risk factors: Changes in government policies, cyber–Security Threats, and operational challenges.
- Buy: above ₹2045.
- Target price: ₹2095.
- Stop loss: ₹2020.
Stock Market Recap
The equity benchmark indices rallied sharply on Wednesday, November 13, with the Sensex climbing over 700 points and the Nifty reclaiming the 25,900 mark, supported by broad-based buying amid firm global cues and upbeat investor sentiment following exit polls projecting a strong NDA comeback.
Sectoral momentum was robust, with all major indices trading in the green. IT, financial services, oil & gas, and media stocks led the rally, each rising over 1 percent. The Nifty IT index climbed 1.2 percent, driven by gains in Tech Mahindra, TCS, Infosys, and Bharti Airtel, as optimism over a potential India–US trade deal and easing visa concerns lifted sentiment.
The rally was further fuelled by expectations of reduced US tariffs on Indian goods, enhancing prospects for trade-linked sectors such as IT, pharma, and manufacturing.
Outlook for Trading
Positive cues emanating from newsflow both domestic and geopolitical ensured that the trends have revived The markets dipped as expected to the levels mentioned and gave a splendid recovery to once again ignite some bullish bias. With the trends showing some positive traction yet again we should be looking at selecting stocks that are resuming the existing trends. As current scenario indicates a more slow and sedate moves that may continue in the next few days, we will continue to expect some global cues to take the initiative forward.
As trends are showing limitation of sustaining the trends and moving higher, we need to step back and decide on the next course of action. The option data suggests that resistances in Nifty have now moved to 25000 where there is a steady Call Shorting that continues to curb any bullish tendency. Immediate supports continue to remain at 25600 forcing the range to travel between 25600 to 25900 this week. As the Put Call Ratio (PCR) has moved above 1 in Nifty and reached 1 in Bank Nifty we are witnessing some steady bullish enthusiasm once again. could also be reaching oversold levels. Since Bank Nifty has cleared the 53000 mark it seems to be in a better position it could take the lead to take the market higher.
We had mentioned that “ ….the Open Interest data clearly indicating that there now hurdles have shifted to higher levels at 26000“ . These levels could prove to be a hurdle and the gap region now around 25700 could act as a support zone for the reaction that may emerge in the coming sessions. With the market remaining a buy on dip market, we can look at some support zones to buy into that may emerge in the coming sessions. Now, we can observe that Nifty would look at 25700 which has now turned into supports for a pullback to buy into.
After identifying that the Option data had reached oversold status the market has responded resolutely to this data point. While the max pain point has now moved to 25850 highlighting the immediate support rests at 25800 then at 25700. Any dip near these zones could be an intraday play for the long side. A closing below could open some room for downside. With the Open Interest data clearly indicating that hurdles remain at 26000 , we can continue to look at a 30-minute range breakout for creating some longs for a run to 26000.
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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.
