The bulls are hard at work and using the depths to resurface at every available opportunity. However, their inability to sustain the trends at higher levels keeps dragging the market down. After spending much time in volatility, the gap scenario has derailed enthusiasm. However, pockets of bullishness keep springing up and drawing some attention.
Three stocks to trade, as recommended by NeoTrader’s Raja Venkatraman for 17 November
ZOTA (current price ₹1,597.10)
Buy above ₹1,600, stop ₹1,560, target ₹1,690 (multiday)
- Why it’s recommended: Zota Health Care Ltd manufactures and markets pharmaceutical, nutraceutical, ayurvedic, wellness, and over-the-counter (OTC) products. The stock has managed to hold on steadily at the KS line and after some deliberation is witnessing steady volumes, hinting at possible upside. After generating some support around 1,510, prices are steadily heading higher.
- Key metrics:
- P/E: 240.76
- 52-week high: ₹1,627.70
- Volume: 98.47M
- Technical analysis: Support at ₹1,430, resistance at ₹1,700
- Risk factors: High debt levels, inconsistent profitability, high stock valuation, and promoter stake reduction.
- Buy : above ₹1,600
- Target price: ₹1,690 in 2 months
- Stop loss: ₹1,560
SUNPHARMA (current price: ₹1,757.10)
Buy above ₹1,760, stop ₹1,735, target ₹1,810 (intraday)
- Why it’s recommended: The stock’s slow and steady rise since October has not given up, and after consolidating, could move higher. With the TS levels holding on in the past two days one could look at going long at current levels.
- Key metrics:
- P/E: 93.66
- 52-week high: ₹1,910
- Volume: 1.73M
- Technical analysis: Support at ₹1,700, resistance at ₹1,830
- Risk factors: Regulatory compliance, intense market competition, and geopolitical uncertainties
- Buy : above ₹1,760
- Target price: ₹1,735
- Stop loss: ₹1,810
SBIN (current price: ₹967.85)
Buy above ₹968, stop ₹953, target ₹998 (intraday)
- Why it’s recommended: The stock has been on a sharp rise and after recent consolidation, saw a strong upmove on Friday. The rise, after some time spent at the TS Bands over the past 8 days, is generating steady demand in lower timeframes. Consider going long.
- Key metrics:
- P/E: 11.93
- 52-week high: ₹971.15
- Volume: 11.03M
- Technical analysis: Support at ₹915, resistance at ₹1,025
- Risk factors: Market volatility, operational and IT system vulnerabilities, and broader macroeconomic factors
- Buy: above ₹968
- Target price: ₹998
- Stop loss: ₹953
How the stock market performed on Friday
The Nifty 50 slipped below 25,900 during intraday trade, weighed down by persistent weakness in IT and metal stocks. However, late-session buying helped the index recover partially to close above 25,900, though the crucial 26,000 level continues to offer stiff resistance. The Sensex, which had dropped nearly 200 points in early trade, managed to reverse its losses and ended 84 points higher at 84,562, supported by gains in select PSU banks and energy counters.
The IT sector remained under pressure, mirroring the overnight tech sell-off on Wall Street. Meanwhile, the earnings season drew to a close hinting stock-specific action in focus.
Outlook for trading
The November series has been quite demanding as the large-scale volatility has left every trader and investor bruised and battered. Despite the hope of bullishness, markets have been choppy. The situation remains dicey and we are not out of the woods yet.
However, a bullish signature is emerging. There was slight broad-basing of the sector interest as IT joined in for some gains. The top guns in IT are heavyweights in the Nifty, which helped matters. However, a revival of interest continues to elude the mid and small cap spaces.
Despite the trends showing spurts of bullishness, the market may struggle to hit new highs in the coming week. We observed that the decline tested the support levels before the market ended the week rather strongly. Now, sentiment is set for some positive bias. When the market rises, there are enough people to keep calling the top. However, we need to tread carefully.
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We continue to maintain that the dip remains a buying opportunity and one should hold on to the bullish bias as the gap region around 25,700 could act as a support zone for any reaction that may emerge in the coming sessions. In coming sessions, we have a clear zone defined for longs, where Nifty would look at 25,700 as breach of confidence.
Register for Mint Extraclass for more tips and advice on how to trade in the stock markets. The next session will be held on 13 November.
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.
