Market Expert Raja Venkatraman Reveals His Top Stock Picks
Driven by growing expectations of a Federal Reserve rate cut, a wave of optimism swept through Asian markets on Wednesday, providing a significant boost to Indian equities. This positive global sentiment helped the Nifty snap a three-day losing streak, staging a powerful rally of 323 points, or 1.25%, to reclaim the 26,200 level. In this buoyant environment, Raja Venkatraman, co-founder of NeoTrader, has identified three specific stocks that present promising trading opportunities for investors on 27 November.
Detailed Stock Analysis and Recommendations
Here is a detailed breakdown of the three stocks recommended by Raja Venkatraman, complete with entry points, targets, and the rationale behind each pick.
CUMMINS INDIA (Current Price: ₹4,408.30)
Raja Venkatraman suggests a multiday trade on Cummins India. The recommendation is to buy the stock above ₹4,417, with a stop loss set at ₹4,350 and a target price of ₹4,550. Cummins India Limited, the largest entity of the Cummins Group in the country, is a leading manufacturer of engines and power generation systems. Technically, the stock has received a tailwind from brokerages reiterating a resumption of bullish trends. An encouraging closing on 26 November and a revival from the neutral zone in the Relative Strength Index (RSI) indicate a potential upward bias in the coming days. Key metrics include a P/E ratio of 53.97 and a 52-week high of ₹4,494.40. Investors should be mindful of risk factors such as a decline in agent productivity and regulatory changes.
MAX FINANCIAL SERVICES (MFSL) (Current Price: ₹1,736.70)
For intraday traders, Max Financial Services is the pick. The advice is to buy above ₹1,740, with a stop loss at ₹1,710 and a target of ₹1,785. MFSL is primarily engaged in the life insurance business through its subsidiary, Max Life Insurance Company. The stock has been steadily climbing and, after a brief consolidation period in November, is showing a fresh uptrend. Steady buying interest has been drawn from recent support in the TS & KS region, and the RSI is heading higher, inviting a long trade. The stock trades at a high P/E of 354, with its 52-week high at ₹1,729.90. Risks involve exposure to unsecured loans and declining margins.
COFORGE LTD. (Current Price: ₹1,871.10)
The final recommendation is Coforge Ltd., a multinational IT services provider leveraging AI, cloud, and data analytics. This is an intraday trade: buy above ₹1,872, with a stop loss at ₹1,830 and a target of ₹1,940. The stock's price movement had shown a V-shaped pattern, indicating uncertainty, but a strong push from the TS & KS lines has rekindled hopes for an upside. With the RSI showing signs of revival, the expectation is for the rise to continue. The company has a P/E of 89.54 and is currently below its 52-week high of ₹2,005.36. Key risks include macroeconomic conditions and intense market competition.
Market Outlook and Trading Strategy
The dramatic rebound on 26 November, marking the Nifty's biggest single-day gain in five months, was fueled by a combination of dovish signals from the US Federal Reserve and supportive commentary from the Reserve Bank of India governor. Information technology and metal stocks led the charge, supported by robust market breadth where over 2,500 stocks advanced. The Nifty is now just 65 points away from its all-time high, and the current momentum suggests a potential breach of that level is imminent.
Analysis of options data, including a put-call ratio (PCR) of 1.02, had correctly indicated the market was oversold and a rebound was likely. The strong gap-up opening confirmed the resumption of bullish sentiment. With strong put writing observed and the Max Pain point shifting to 26,150, the strategy for the coming sessions is to buy on dips. While trends may remain edgy due to geopolitical news and macro data, the bulls are firmly in control for now.
Disclaimer: Raja Venkatraman is the co-founder of NeoTrader (SEBI Research Analyst Registration No. INH000016223). Investments in securities are subject to market risks. Please read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors. The views and recommendations are those of the individual analyst and do not represent the views of Mint.
