Stocks to buy: Raja Venkatraman recommends three stocks for today—18 December
Nifty 50 on 17 December: Recap
It has been a week of unprecedented events, marked by sharp drawdowns in broader indices. As trends began to slip, chaos ensued amid a complete lack of clarity.
The strong rebound following a historic global selloff has raised concerns about the sustainability of the uptrend. With trends still uncertain, all eyes are now on global markets for cues that could determine whether the bullish momentum in Indian markets will continue.
Indian stock markets: Way forward
As mentioned Tuesday, the break of the lower range at 24,500 triggered downward reactions, placing the indices under pressure ahead of the outcome of the US Federal Reserve policy decision. The sharp decline echoes the pullback seen on 18 November, after which the markets revived gradually.
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The cloud region continues to act as a resistance, and the failure to sustain a move beyond 24,840 has capped any immediate upside for the coming days. With hopes of a follow-through rally dimming, there is now a possibility of a decline toward 24,100.
Options data shows no significant additions, signalling caution. It remains essential to stay vigilant with long positions, as the markets are still not out of the woods.
Three stocks to buy, recommended by NeoTrader’s Raja Venkatraman:
• Colgate-Palmolive: Sell at ₹2783, stop ₹2805, target ₹2750
The FMCG sector has struggled to revive, with the recent rally facing sharp sell-offs. The inability of prices to sustain during the recent reaction signals mounting pressure on trends. With the potential for further downside, the possibility of additional declines cannot be ruled out.
• United Spirits: Buy at ₹1571, stop ₹1540, target ₹1602
As demand continues to build for its premium brands, the United Spirits stock is seeing a steady buying interest developing in this counter. A sharp rise above value resistance zone around 1,540 augurs well for prices. Now, poised at heading beyond the cluster highs one can consider going long.
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• Varroc: Buy at ₹616, stop ₹607 target ₹630
Varroc, a global technology powerhouse in manufacturing and supplying automotive components has been finding steady demand at lower levels. The rounding pattern on daily charts indicates that the bullish momentum can persist. With value resistance area around 600 being surpassed we can expect more upside in the coming days.
Raja Venkatraman is co-founder, NeoTrader.
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.
