Market Expert Raja Venkatraman Unveils Three Stock Picks for February 12
Market expert Raja Venkatraman, co-founder of NeoTrader, has recommended three stocks for trading on February 12, providing investors with actionable insights to navigate the current market landscape. This analysis comes as Indian equities showed muted movements, with the Sensex and Nifty closing largely unchanged in recent sessions.
Stock Market Recap: Indices Hold Steady Amid Mixed Sentiment
Indian equity markets ended Wednesday with minimal changes, reflecting cautious investor behavior ahead of key domestic and global triggers. The benchmark Sensex dipped slightly by 40 points to settle at 84,233.64, while the Nifty edged up 18.7 points to finish at 25,953.85. Market breadth was marginally negative, with 1,882 stocks advancing, 2,165 declining, and 148 remaining flat.
Sectoral performance was varied, with the Auto index surging 1.3%, and PSU banks and pharma each gaining 1%. Conversely, IT stocks faced pressure, with the sector index slipping 1%. Notable gainers among Nifty constituents included Eicher Motors, Apollo Hospitals, and SBI, while Coal India and TCS weighed on sentiment. Midcap and smallcap indices mirrored the benchmark's flat tone, indicating a wait-and-watch approach among traders.
Raja Venkatraman's Top Stock Recommendations
Raja Venkatraman has identified three stocks with potential for growth, backed by technical analysis and fundamental metrics. Here are his exclusive picks:
Voltas Ltd (CMP: ₹1506.50)
Why it's recommended: Voltas, a Tata Group company established in 1954, is India's leading manufacturer of air conditioning and cooling products, as well as a major provider of engineering solutions specializing in HVAC and electro-mechanical projects. After a period of decline, the stock has shown signs of recovery following strong Q3 results, which have bolstered support levels around ₹1280. Technical analysis reveals a double bottom formation on daily charts, indicating a sustained revival. The stock has pushed beyond the cloud region, showcasing strong upside momentum in recent trading sessions.
Key metrics: P/E Ratio: 103.88, 52-week high: ₹1530, Volume: 1.8M.
Technical analysis: Support at ₹1400, resistance at ₹1600.
Risk factors: Intense competition, potential working capital strain, slow long-term growth, and high valuation concerns.
Action: Buy above ₹1510, with a stop loss at ₹1460 and a target price of ₹1635 within two months.
Shriram Finance Ltd (CMP: ₹1056.80)
Why it's recommended: Shriram Finance is India's largest retail Non-Banking Financial Company (NBFC) and the flagship of the Shriram Group, focusing on financial inclusion by offering diverse loans such as commercial vehicle, auto, gold, and MSME loans, along with fixed deposits to underserved customers. The stock is exhibiting a strong run-up ahead of its Q3 numbers, with recent highs holding firm and intraday dips leading to rebounds. A bullish Kumo crossover suggests a potential strong upward move if the resistance around ₹1030 is maintained, making it an attractive long position.
Key metrics: P/E Ratio: 360, 52-week high: ₹1069.15, Volume: 4.9M.
Technical analysis: Support at ₹971, resistance at ₹1200.
Risk factors: Asset quality issues, interest rate fluctuations, and overall economic sensitivity.
Action: Buy above ₹1060, with a stop loss at ₹1022 and a target price of ₹1145 within two months.
Kaynes (CMP: ₹4154.70)
Why it's recommended: Kaynes, after experiencing a sharp drawdown, reported modest Q3 revenue growth with margin pressure due to higher costs and operational challenges. However, demand for bromine and industrial salt remains robust, and strategic projects in semiconductors and energy storage are progressing, with SOP and derivatives businesses expected to ramp up in FY27. The declines over recent weeks appear to be bottoming out, with negative news factored in, presenting a buying opportunity.
Key metrics: P/E Ratio: 114.33, 52-week high: ₹7705, Volume: 3.57M.
Technical analysis: Support at ₹3750, resistance at ₹4500.
Risk factors: High customer concentration, dependence on imported raw materials subject to foreign exchange volatility, and working capital intensive operations.
Action: Sell below ₹4160, with a stop loss at ₹4080 and a target price of ₹4450.
Market Outlook and Trading Strategy
Despite volatile trading sessions, the indices have shown a bullish resolve, with Nifty and Bank Nifty indicating signs of revival. Higher levels are presenting some hurdles, but overall momentum remains buoyant, with dips being met with bullishness. The broader indices have sustained gap-ups over the last two days, leading to stock-specific action. Bank Nifty's upward movement suggests positive vibes are gaining traction, though challenges persist around support levels such as 25500 for Nifty.
Option chain data highlights limited market participation, with Nifty aiming to hold above 26000 and Bank Nifty targeting 60000. Investors are advised to approach trades systematically, considering the ongoing recovery in valuations and results.
Raja Venkatraman is the co-founder of NeoTrader, with SEBI registration number INH000016223. Investments in securities are subject to market risks. Readers should consult certified experts before making any investment decisions. The views expressed are those of the analyst and do not represent Mint.
