Market Expert Raja Venkatraman Shares His Top Stock Picks for 19 January
Raja Venkatraman, the co-founder of NeoTrader, has identified three promising stocks for trading on 19 January. His recommendations come after a challenging Friday session where Indian markets struggled to hold early gains.
Friday's Market Performance Sets the Stage
Indian equity markets experienced volatility on Friday. The Sensex and Nifty 50 managed to close in positive territory but surrendered significant intraday gains. The Sensex finished at 83,570.35, down 0.23%, while the Nifty ended at 25,694.35, up 0.11%.
Market breadth remained weak with more declining shares than advancing ones. Investors turned cautious ahead of major quarterly earnings announcements from Reliance Industries, ICICI Bank, and HDFC Bank.
Three Stocks Recommended by Raja Venkatraman
Venkatraman has selected three stocks that show technical strength despite broader market uncertainty. Each recommendation includes specific entry points, stop losses, and target prices.
Tech Mahindra (TECHM)
Current Price: ₹1,670.50
Recommendation: Buy above ₹1,675
Stop Loss: ₹1,625
Target Price: ₹1,798 (Multiday trade)
Tech Mahindra has shown resilience after consolidating following a strong November rally. The stock recently rebounded sharply from support around ₹1,590 with strong volume backing the move.
Technical indicators show the positive directional index inching higher on intraday timeframes. The stock has formed a large body candle as it moves decisively upward.
Key Metrics:
- P/E Ratio: 41.72
- 52-week high: ₹1,736.35
- Volume: 3.73 million
Technical Levels:
- Support: ₹1,580
- Resistance: ₹1,850
Risk Factors: The IT sector faces cyclical volatility, raw material price fluctuations, intense competition, and margin pressure.
Steel Authority of India (SAIL)
Current Price: ₹149.37
Recommendation: Buy above ₹150.50
Stop Loss: ₹146
Target Price: ₹161 (Multiday trade)
SAIL has formed a V-shaped recovery pattern after retreating into Tenkan-Sen and Kijun-Sen bands. A strong long body candle around these bands suggests potential upside if the broader market rebounds.
The rising directional index indicates a favorable environment for long positions in this stock.
Key Metrics:
- P/E Ratio: 25.52
- 52-week high: ₹970.60
- Volume: 7.05 million
Technical Levels:
- Support: ₹890
- Resistance: ₹1,100
Risk Factors: SAIL faces significant exposure to volatile London Metal Exchange prices for aluminum and copper. The company also requires substantial capital expenditure.
Punjab National Bank (PNB)
Current Price: ₹132.36
Recommendation: Buy above ₹133
Stop Loss: ₹128
Target Price: ₹143 (Multiday trade)
PNB has created a rounding pattern while consolidating into strong cloud supports. The stock surged strongly on Wednesday, surpassing the cloud region and showing upward momentum in the last trading session.
Key Metrics:
- P/E Ratio: 9.72
- 52-week high: ₹129
- Volume: 34.70 million
Technical Levels:
- Support: ₹125
- Resistance: ₹145
Risk Factors: PNB faces challenges including slower-than-expected revenue growth, managing top-level attrition, and efficiently integrating operations.
Market Outlook and Trading Caution
Mid-cap and small-cap stocks suffered significant losses on Friday. This decline followed news about potential US tariffs on various goods including branded drugs and heavy trucks.
The IT sector continues to face pressure from H-1B visa concerns, while the pharmaceutical sector now confronts additional trade tax threats.
Technical analysis shows market indecision on weekly charts. After two weeks of gains, a red small-bodied candle has appeared, signaling a potential downward shift. The Nifty struggles to maintain support between 25,500 and 25,600, with resistance expected around 25,800.
Venkatraman advises traders to exercise caution during this volatile period. Markets have lost approximately 1,000 points over the last seven sessions, creating uncertainty that requires careful navigation.
Raja Venkatraman serves as co-founder of NeoTrader. His SEBI-registered research analyst registration number is INH000016223. Remember that investments in securities carry market risks. Always review all related documents carefully before investing. Registration with SEBI and certification from NISM do not guarantee intermediary performance or assure investor returns.
Disclaimer: The views and recommendations presented here belong to individual analysts. They do not represent Mint's views. Investors should consult certified experts before making investment decisions.
