News

This is a Mint Premium article gifted to you. Subscribe to enjoy similar stories.

On 29 October, the benchmark indices rebounded, reversing prior losses as broadbased buying lifted the Nifty 50 above the 26,050 mark. The market opened slightly higher and gained momentum through the session, buoyed by optimism ahead of the US Federal Reserve’s policy decision and hopes of a trade agreement between India and the US.

Strong thrust to the upside has clearly established once again some positive charge in the market. While we await the results of the US Federal Open Market Committee’s meeting, the way ahead seems to be to look at some steady buying opportunities as the corporate results season unfolds. A strong upmove with a buy on dips can be considered in the days ahead.

Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Thursday, 30 October.

HCLTECH: Buy above: ₹1,560 | Stop: ₹1,514 | Target: ₹1,640 (Multiday)

POLYCAB: Buy above: ₹7,740 | Stop: ₹7,660 | Target: ₹7,850 (Intraday)

DELHIVERY: Buy above: ₹485 | Stop: ₹477 | Target: ₹499 (Intraday)

On 29 October, the Nifty 50 closed at 26,053.90, up 117.70 points or 0.45%, while the Sensex rose 368.97 points or 0.44% to settle at 84,997.13. Midcap stocks outperformed, with the Nifty Midcap 100 hitting a fresh 52-week high above 60,000. The Nifty Smallcap 100 advanced 0.4%.

Top Nifty gainers included Adani Enterprises, Power Grid Corp, NTPC, Adani Ports, and JSW Steel. On the flip side, Dr Reddy’s Laboratories, Bharat Electronics, Eternal, Mahindra and Mahindra, and Coal India declined.

Sectorally, autos slipped 0.7%, while metals, and oil and gas posted gains of up to 2%, contributing to the overall bullish sentiment.

Strong undercurrent on Wednesday helped the Nifty survive the volatility of the market and ensured that the rise sustained above critical support zones, as the market was whipped around quite a bit. At the moment, global trends remain the key drivers of sentiment. There really isn’t much by way of local newsflow 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. As one can see from the daily charts, the prices have treaded into strong resistance at the current close, and will need more tailwinds that can fuel more upside.

After a brief consolidation, the gradual break above the consolidation zone highlights a positive start to the series. However, one cannot rule out the possibility of supplies at a higher level. While the market continues to test investor confidence, the recovery that is emerging swiftly on every dip signals that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.

Nifty, which has managed to hold itself above the 26,000 zone, has now opened towards 26,500, which acts as the next big hurdle as the immediate resistance for some bullish moves. With the Open Interest data clearly indicating a revival, one should keep tracking a 30-minute range breakout as trading continues to be an important metric for creating some longs. One should also keep looking at every dip as a buying opportunity.

As we head into the resistance zones, we could experience some inconsistency profit booking could emerge yet again. As the trends are still circumspect and are witnessing show limited market participation. Nifty now seeks to contest the next resistance around 26,500 mark while Bank Nifty aims to clear 59,000 as Options data are clearly favouring strong bullishness that can persist through the week.

HCLTECH: Buy above: ₹1,560 | Stop: ₹1,514 | Target: ₹1,640 (Multiday)

POLYCAB: Buy above: ₹7,740 | Stop: ₹7,660 | Target: ₹7,850 (Intraday)

DELHIVERY: Buy above: ₹485 | Stop: ₹477 | Target: ₹499 (Intraday)

Stop loss: ₹499

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.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

You are just one step away from creating your watchlist!

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.

Your session has expired, please login again.

You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.

This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp