Three stocks to trade as recommended by Raja Venkatraman of NeoTrader for today:
Angel One Ltd: Buy above ₹2,577 | Stop ₹2,500 | Target ₹2,725 (multiday)
PVR INOX Ltd: Buy above ₹1,180 | Stop ₹1,155 | Target ₹1,210 (intraday)
Mphasis Ltd: Buy above ₹2,890 | Stop ₹2,835 | Target ₹2,970 (intraday)
Stock market update
On 27 October, Indian equities staged a strong rebound, with the benchmark Nifty 50 reclaiming the 26,000 mark amid broad-based buying and upbeat global cues. The rally was fueled by optimism surrounding a potential US-China trade breakthrough and expectations of a rate cut by the US Federal Reserve. After a firm start, both the Sensex and the Nifty extended gains through the session, recovering losses from the previous trading day.
By market close, the Sensex surged 566.96 points, or 0.67%, to settle at 84,778.84, while the Nifty climbed 170.9 points, or 0.66%, ending at 25,966.05. The broader market also participated in the uptrend, with the BSE Midcap Index rising 0.7% and the Smallcap Index advancing 0.5%. The bullish sentiment reflected growing investor confidence, supported by favourable macro signals and renewed buying interest across sectors.
Outlook for trading
A strong undercurrent ahead of expiry day helped the Nifty survive the market’s volatility and ensured that the rise sustained above critical support zones, as the market was whipped around quite a bit. At the moment, the global trends remain key drivers of the sentiment. There really isn’t much by way of local news flow to contain the volatility induced.
The long-body candle moves seen were also reasonably large, bringing in people to stage a steady buying participation through the day! Trading, therefore, was quite difficult through the week, and it would have been a wonder if one came out largely unscathed in the week. As one can see, the Daily charts show that prices have trended into strong resistance at the current close and will require additional tailwinds to fuel further upside.
A gradual break above the descending channel resistance after a strong decline is seen at the start of the week. The supplies at higher levels continue to test confidence, but the recovery emerging from lower levels is signalling that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.
The Nifty has once again staged an upmove, reaching the crucial spot above 25,900, and has now opened towards 26,250, which acts as the next significant hurdle. While resistances continue to emerge for some bullish moves, we also need to consider what the Option data is saying ahead of the FOMC meeting scheduled.
With the Open Interest data clearly indicating a revival pushing PCR above 1 , we can consider keeping a 30-minute range breakout on Tuesday as an important metric for creating some longs.
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As we head into the monthly expiry, we may experience some inconsistency as we approach an important inflexion point. However, the trends remain cautious and are witnessing limited market participation. The Nifty now seeks to contest the next resistance around the 26,000 mark while the Nifty Bank aims to clear 58,000 as the Options data are clearly favouring strong bullishness that can persist through the week.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
ANGELONE (Cmp ₹2,577.00)
Why it’s recommended: Angel One, formerly Angel Broking, is a major Indian fintech company offering a range of financial services, including broking, demat accounts, mutual funds, and IPO investments. After a long phase of decline, the stock is seen coming out of its shadow. This counter has formed a strong thrust above the cloud region, and with momentum, it can head higher. After a push above the clouds, we can see that the stock is set for a turnaround. Go long.
Key metrics:
P/E: 27.45
52-week high: ₹3,502.60
Volume: 736.85K.
Technical analysis: Support at ₹2,300, resistance at ₹2,900.
Risk factors: Declining revenue momentum, intense competition and ageing debit square-off.
Buy: Above ₹2,577.
Target price: ₹2,725 in 1 month.
Stop loss: ₹2,500.
PVRINOX (Cmp ₹1,179.20)
Why it’s recommended: PVR INOX is a leading Indian enterprise in the entertainment and media sector, involved in movie exhibition, distribution, and production. After some disappointing numbers were quickly priced in the negative newsflow, it has been on a steady upward drive in the last few weeks. The strong showing has now translated into a potential upward possibility in the next few weeks. Can look to go long.
Key metrics:
52-week high: ₹1,620
Volume: 378.76K.
Technical analysis: Support at ₹1,080, resistance at ₹1,300.
Risk factors: Credit risk from deteriorating asset quality and potential borrower livelihood disruptions, gearing risk from high leverage levels, regulatory risk.
Buy at: Above ₹1,180.
Target price: ₹1,210.
Stop loss: ₹1,155.
MPHASIS (Cmp ₹2,888.90)
Why it’s recommended: Mphasis is an Indian multinational information technology (IT) and consulting company headquartered in Bengaluru. The prices have been oscillating in a wide range, making a base around the 2650 zone. The thrust seen on Monday was above a strong value area resistance zone from the start of the year, around 460, despite staging a strong cloud breakout, indicating that the positive turnaround is emerging. After the recent test of the TS & KS Bands. With a strong close on Monday, we can expect some positive vibes to emerge.
Key metrics:
P/E: 38.70,
52-week high: ₹3,239.55,
Volume: 377.69K.
Technical analysis: Support at ₹2,700, resistance at ₹3,100.
Risk factors: Supplier retention, potential customer acquisition challenges, and shifts in investor participation.
Buy at: Above ₹2,890.
Target price: ₹2,970 in 1 month.
Stop loss: ₹2,835.
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.
