Stocks to buy: Raja Venkatraman's top picks for 11 November

Three stocks to buy or sell, as recommended by Raja Venkatraman of NeoTrader for Tuesday, 11 November

ASHOKLEY (Cmp ₹142.28)

Buy above ₹143, stop ₹139, target ₹155 (multiday)

• Why it’s recommended: After spending lot of time in consolidation, this counter has now emerged from its recent challenge. With a strong thrust above the cloud, prices hint at possible upside. After generating some support around ₹138, the stock is steadily heading higher. After surpassing this level, the rise in momentum supported by steady volumes are highlighting possibility of more upward traction.
• Key metrics:
  • P/E: 24.78
  • 52-week high: ₹289.65
  • Volume: 224.37k
• Technical analysis: Support at ₹135, resistance at ₹160
• Risk factors: Market volatility and sector-wide fluctuations in geopolitical news could impact returns
• Buy : above ₹143
• Target price: ₹155 in 2 months
• Stop loss: ₹139

LTIM (Cmp ₹5,643)

Buy above ₹5,650, stop ₹5,580, target ₹5,750 (intraday)

• Why it’s recommended: LTIMindtree Limited is a global technology consulting and digital solutions company formed by the strategic merger of Larsen & Toubro Infotech (LTI) and Mindtree in November 2022. The sharp rise since the start of October has not given up, and after consolidation we are see a steady upward drive. With TS levels holding in the past two days, one can look at going long at current levels.
• Key metrics:
  • P/E: 34.76
  • 52-week high: ₹6,764.80
  • Volume: 139.34k
• Technical analysis: Support at ₹5,400, resistance at ₹5,800
• Risk factors: Rising input costs, increased operational expenses, and potentially foreign exchange impacts
• Buy: above ₹5,650
• Target price: ₹5,750
• Stop loss: ₹5,580

BHARATFORG (Cmp ₹1,328.40)

Buy above ₹1,330, stop ₹1,310, target ₹1,365 (intraday)

• Why it’s recommended: The stock had been on a steady upward trajectory before a pullback into the TS & KS Bands in the past eight days generated steady demand at lower levels. Robust results signal the possibility of more upward traction. Consider going long.
• Key metrics:
  • P/E: 45.53
  • 52-week high: ₹1,418.45
  • Volume: 537.45k
• Technical analysis: Support at ₹1,260, resistance at ₹1,400
• Risk factors: Global economic volatility, industry specific technological changes, and operational challenges
• Buy: above ₹1,330
• Target price: ₹1,310
• Stop loss: ₹1,365

How the stock market performed on Monday

Indian equity markets kicked off the week on a positive note, snapping a three-day losing streak as benchmark indices closed higher on 10 November. The Nifty 50 rose 82 points to settle at 25,574.30, reclaiming the 25,550 mark, while the Sensex gained 319.07 points to end at 83,535.35. The session began flat amid mixed global cues, but strong buying in IT stocks propelled the Nifty to an intraday high of 25,653.45. However, mid-session profit booking trimmed some gains.

Sectoral strength was visible in IT, metal, and pharma counters, while broader market action remained mixed. The BSE Midcap index advanced 0.6%, contrasting with a 0.4% decline in the Smallcap index, reflecting selective participation.

Market breadth was negative, with 2,183 stocks declining against 1,787 advancing. The day’s action suggests cautious optimism, with large-cap defensives leading the rebound while broader sentiment remains tentative. Sustained follow-through buying will be key for further upside.

Outlook for trading

The dips highlighted in the last issue played out quite well and the strong surge ensued to begin the week on a positive note. However, after some steady rise seen the geopolitical tensions continue to arrest the market trends thus restraining bullish moves. However, the rise last week indicates that Nifty, after spending some time at lower levels, could sustain the newfound momentum.

As we can see on the charts, the markets moved very much in line to challenge the resistance zone highlighted yesterday and move higher. On the charts we note that the supply zone has been broken and potential to move higher has now gained more strength.

Taking some cues from options data, we can add that the higher levels around 25700 that had steady call writers highlighting that if the selling steps up the PCR is hinting at some resistance now seeping in with a hint of negative bias.

The trend that is emerging clearly suggests that the dips seen last week managed to hold the support zone and the gap down opening was covered to ensure 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 higher, a dip towards 25450-25500 (Nifty Spot) to consider a buy opportunity. At this levels we have the value area support as well as the median line that shall look to lend some aid to the descent. While volatility is seen expanding, we need to factor the inconsistency of the moves seen lately into our equation.

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Looking at the recent move in Nifty, a close above 25600, which is the immediate resistance as per the Open Interest data, holds more promise in the near term. If we witness a 30-minute range breakout on Tuesday we can consider to trade on either side as the trends still remain tentative and we expect some resistance to kick in. We are entering a phase where we can expect some volatilty.

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.