Here are three stocks to buy or sell on 31 October, as recommended by Raja Venkatraman of NeoTrader.
Best stocks to buy today
DMART: Sell below: ₹4,160 | Stop: ₹4,219 | Target: ₹4,080 (Intraday)
LAURUSLABS: Buy above: ₹965 | Stop: ₹940 | Target: ₹1,000 (Intraday)
PERSISTENT: Buy above: ₹5,965 | Stop: ₹5,840 | Target: ₹6,100 (Intraday)
Note:All buy trades are rates of equity and sell rates are based on F&O.
The stock market on Thursday, 30 October
On 30 October, the Nifty 50 slipped 0.68% to close below the 25,900 mark as investor sentiment turned cautious following hawkish remarks from the US Federal Reserve chair Jerome Powell. His comments revived concerns about prolonged high interest rates, prompting broad-based profit-booking across sectors. Global uncertainty was further heightened by the extended meeting between US President Donald Trump and Chinese President Xi Jinping, which stirred hopes of progress on trade negotiations.
On the domestic front, Coal India and Larsen & Toubro emerged as the top gainers in the Nifty pack, while Dr. Reddy’s Laboratories and Cipla led the losers. Sectorally, all indices, except Nifty Realty, ended in the red, with broader markets echoing the benchmark’s weakness. Both Nifty Midcap 100 and Smallcap 100 declined.
The advance/decline ratio reflected bearish breadth, with 328 of Nifty 500 stocks closing lower. Technically, support lies at 25,800–25,750, while resistance is seen at 26,030–26,050. A breakout above 26,050 could trigger a rally.
Outlook for trading
Volatility was the key feature of the market throughout this week and the market was whipped around quite a bit as global trends were the main drivers of the sentiment.
Despite the much-anticipated US Federal Open Market Committee announcing the verdict as anticipated, the trends failed to sustain. There really wasn’t much by way of local news flow to contain the volatility induced. The moves were also reasonably large, creating sufficient moves to bring people in, only to get knocked out the following day! Trading, therefore, was quite difficult through the week.
A continued oscillation and failure to close above 26,000 could now put the effort to move higher under threat the descending channel resistance after a strong decline is seen at the start of the week. Lack of participation at the moment is clearly visible in the indices despite the quarterly numbers showing an improvement. Now, with limited encouraging cues available we maintain that the rallies shall be used to sell into.
As we head into the last trading day of the week, we could experience some inconsistency as we are nearing an important inflexion zone. However, the trends are still circumspect and are witnessing limited market participation. Nifty now seeks to contest the support around the 25,600 mark that has now opened up, while Bank Nifty is struggling to hold above 58,000 to clear the air of uncertainty.
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For Nifty to stage an upmove, the spot Nifty needs to move above 26,100, which acts as a big hurdle and is the immediate resistance for bullish revival. With the Open Interest data clearly indicating lack of bullish intent, one should keep tracking a 30-minute range breakout on Friday, as it continues to be an important metric for creating some longs.
As indices are showing signs of hesitation, one should look to encash some stock specific action.
Three stocks to trade on 31 October, recommended by NeoTrader’s Raja Venkatraman
Avenue Supermarts Ltd (Current market price: ₹4,177)
DMART: Sell below: ₹4,160 | Stop: ₹4,219 | Target: ₹4,080 (Intraday)
- Why it’s recommended: DMart operates a chain of supermarkets and hypermarkets under the parent company, Avenue Supermarts Ltd. This counter has been unable to really show some improvement after a strong decline. After a brief consolidation, the stock shows inability to head higher and the recent support around ₹4,200 has now been given away. With the possibility of more decline, we can see that the stock is heading lower. Sell.
- Key metrics
- P/E: 90.87
- 52-week high: ₹4,916.30
- Volume: 497.70K
- Technical analysis: Support at ₹3,950; resistance at ₹4,200
- Risk factors: Intense competition, margin pressure, slow online growth, and geographical concentration.
- Sell: Below ₹4,175
- Target price: ₹4,080
- Stop loss: ₹4,219
Laurus Labs Ltd (Current market price: ₹970.35)
LAURUSLABS: Buy above: ₹965 | Stop: ₹940 | Target: ₹1,000 (Intraday)
- Why it’s recommended: Laurus Labs has been steadily moving higher over the last few days after some strong numbers quickly priced in the profit booking, and 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
- P/E: 76.69
- 52-week high: ₹970
- Volume: 2.04M
- Technical analysis: Support at ₹925; resistance at ₹1,025
- Risk factors: High debt levels, dependence on raw material imports from China, and significant regulatory and operational execution risks.
- Buy: Above ₹965
- Target price: ₹1,000
- Stop loss: ₹940
Persistent Systems Ltd (Current market price: ₹5,961.70)
PERSISTENT: Buy above: ₹5,965 | Stop: ₹5,840 | Target: ₹6,100 (Intraday)
- Why it’s recommended: Persistent Systems has been under intense selling pressure for more than 5 months. The prices hit a resistance zone at the start of the year, around ₹6,200, despite staging a strong cloud breakout, indicating that a positive turnaround is emerging. Post the correction, the prices are seen bottoming out and moving above the clouds. With a strong closing on Thursday, we can look at some positive vibes to emerge.
- Key metrics
- P/E: 64.38
- 52-week high: ₹6,788.80
- Volume: 528.82K
- Technical analysis: Support at ₹5,700; resistance at ₹6,200
- Risk factors: Macroeconomic sensitivity, talent and attrition, and rapidly evolving technology.
- Buy: Above ₹5,965
- Target price: ₹5,840
- Stop loss: ₹6,100
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.
