Expert Raja Venkatraman’s recommendations for 4 June

The Sensex closed 636 points, or 0.78 per cent, lower at 80,737.51, while the Nifty 50 settled at 24,542.50, down 174 points, or 0.70 per cent, extending losses to the third consecutive session.

Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader 

NFL: Buy (Cmp ₹107.32)

• Why it’s recommended: The trends at the moment in this counter remains a challenging task as the upside in the counter was curtailed at the value resistance zone around 100. Post surpassing this level the rise in momentum supported by steady volumes are highlighting possibility of more upward traction.
• Key metrics: P/E: 68.94,  52-week high: ₹169.95, Volume: 31.71M.
•  Technical analysis: Support at ₹89, resistance at ₹125.
• Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns.
• Buy at: CMP and dips to ₹102.50.
• Target price: ₹114-117 in 1 month.
•  Stop loss: ₹99.

Buy COCHINSHIP: (Cmp 2034.70)

• Why it’s recommended: COCHINSHIP. is a major Indian shipbuilding and ship repair facility, established in 1972 as a fully owned Government of India company. It builds and repairs various types of vessels, including large defence and commercial ships, and also offers marine engineering training and strategic solutions. The prices have spent the last few months in attempting a recovery until the Indo – Pak altercation brought he spotlight once again on Defence stocks. As momentum remains strong with robust volume lead breakout consider going long at current levels and also on dips.
• Key metrics:  P/E: 35.66,  52-week high: ₹352.50,  Volume: 10.03M.
•  Technical analysis: Support at ₹145, resistance at ₹185.
• Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts.
• Buy at: CMP and dips to ₹1970.
• Target price: ₹2185-2240 in 1 month.
•  Stop loss: ₹1950.

Also Read: Lemon Tree’s earnings bloom in FY25—now it must trim the debt
 

Buy TCIEXP (Cmp ₹805.35)

•  Why it’s recommended: The stock that had been undergoing some steady decline since last 8 months until this May when prices started bottoming out. On back of robust results the strong upmove seen in the prices are signalling possibility of more upward traction. Consider a long opportunity.
• Key metrics: P/E: 34.04,  52-week high: ₹1283.20, volume: 517.87K.
•  Technical analysis: Support at ₹642, resistance at ₹1030.
•  Risk factors: Sluggish growth, negative quarterly results, and reduced institutional investor participation.
•  Buy at: above ₹805 and dips to ₹780.
• Target price: ₹880-900 in 1 month.
•  Stop loss: ₹760.

Also Read: Cummins India is upbeat after exports boosted Q4. But competition’s heating up.

Stock Market Recap

In a turbulent trading session on Tuesday, the market participants witnessed a deepening of bearish sentiment. The day was marked by significant pressure across major equity benchmarks, with the Nifty 50 falling short of the critical 24,550 level—a clear signal of the mounting caution in the market.

The broader Sensex echoed this downturn by retreating 636.24 points, equivalent to a loss of 0.78 percent, closing at 80,737.51. Similarly, the Nifty index fell by 174.10 points, or 0.70 percent, reflecting the widespread sell-off that permeated the session. 

Meanwhile, among the cross-section of indices, the BSE Midcap index slipped by around 0.5 percent, and the smallcap index managed to hold steady despite the prevailing market pressures.

Notably, the Nifty Bank index, despite reaching an extraordinary record high of 56,161 in prior trading, reversed course later in the day, underscoring the volatility that gripped the market.

Outlook for Trading

After testing our patience for the last few days the Nifty finally gave up as the overall sentiment continues to favour the sellers. In the last report we had mentioned “momentums on hourly charts are indicating that the prices after settling down seems to have witnessed a resumption of selling pressure”. 

Markets moved very much in line to head lower as the trends could not muster enough momentum. One the charts we note that the median line has been broken and potential to move lower has now opened. 

Taking some cues from the Option data, we can add that the higher levels around 24600 to 24800 are having steady Call writers and the lower side remains open with some meaningful Put writing at 24000 highlights that if the selling steps up the potential to move towards 24000 emerges as the gap support also exists at that zone.

The trend that is emerging clearly suggests that the rally seen last week was a holding the resistance zone and the gap up opening ensured that the prices traded above the range area that developed in the last few days. 

Hence , one should track the trends that are in progress as upmove needs to continue their way above 25000 (Nifty Spot)to renew the bullish bias.

Momentums on hourly charts are indicating that the prices after settling down seems to have witnessed a resumption of selling pressure. With the gradual and hesitant rise emerging from lower levels we can expect the rise to remain hesitant.

For undertaking shorts, we need to see Nifty move below 24500 which is the immediate support for a drop to 24200 and 24050 as per the Open Interest data. If we witness a 30-minute range breakdown on Wednesday we can consider to trade on either side as the trends still remain tentative where we expect some resistances to kick in.

Clearly there is an absence of trends in the indices while the stock specific action continues.

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.