Raja Venkatraman recommends three stocks for 17 July

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Continued volatility is taking its toll on the sentiment. With the bias oscillating quite viciously, we need to stay light but keep participating as the trends are indicating a potential to the upside but is waiting for the right trigger.

Indian equity benchmarks ended flat on 16 July after a volatile session. The Sensex closed marginally higher at 77,186.87, while the Nifty slipped 5.75 points to 24,072.75. Early gains driven by IT and select heavyweights faded as profit booking and weak global cues weighed on sentiment. Broader markets underperformed, with the Nifty Midcap 100 down 0.4% and Smallcap 100 largely unchanged.

TANLA: Buy above ₹590, stop ₹563 target ₹645 (Multiday)

ZYDUSWELL: Buy above ₹603, stop ₹570 target ₹670 (Multiday)

TATATECH: Buy above ₹770, stop ₹735 target ₹855 (Multiday)

InterGlobe Aviation, Wipro, Bajaj Finance, and HCL Tech were among the top gainers, while SBI Life, Eternal, and HDFC Bank declined. Sectorally, consumer durables, media, IT, and auto outperformed, while realty and PSU banks lagged.

The rupee weakened for a second day, closing at 96.20 against the dollar. MRPL surged 10% on strong earnings, while ICICI Lombard fell 10% after a sharp profit drop. Laser Power & Infra debuted with a 23% gain. Analysts expect Nifty to remain range-bound, with support near 23,950–24,000 and resistance around 24,250–24,300.

As market remains muted the triggered by the geopolitical tensions the market tested our patience on Wednesday but did not give up the lower levels. After the fall since last Wednesday a 500-point range is now created and could now limit our expectations in the July series. Some respite seen on Sensex expiry as the trend was seen reviving. However, a steady recovery seen from the lower levels where a gap region combined with the cloud support and also the Kijun Sen line coming into play is assisting the Nifty rebound. On the charts we note that the recent decline tested the below the lower end of the channel is creating pressure on the overall trends.

Taking some cues from the Option data, we can add that the levels around 24100 that had steady Call writers have now ensured that the upward possibility gets more wings. With the PCR nearing 0.82 we can expect some pressure as we head into today. Stay alert.

The trend that is emerging clearly suggests that the dips seen this week managed to hold the support zones . Now, the gap down opening will come into contention as the rise will look to challenge those levels. At the moment the cloud resistance that can restrict the rise is much farther away at 24300. There is a slight improvement in the Relative Strength Index from lower levels of 40 from where an attempt has been made. Hence , one should track the trends that are in progress as upmove needs to continue their way above 23800 (Nifty Spot)to accentuate the bullish bias. Momentums on daily charts are indicating that the prices have reached important supports and after settling down seems to have witnessed a resumption of buying interest.

For undertaking shorts, we need to see Nifty move above 23500 which is the immediate support as per the Open Interest data. If we witness a 30-minute range breakout on Wednesday we can consider to trade on either side as the trends still remain tentative where we expect some resistances to kick in.

While the trends in the indices are still unclear there is plenty of action as far as the stocks are concerned.

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.

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