Indian stock markets continued their bullish run for the second consecutive session on Thursday, with the Nifty 50 index approaching record territory amid positive global cues and strong sectoral performance. Market expert Raja Venkatraman, co-founder of NeoTrader, has identified three promising stocks for investors to consider on 21 November.
Market Performance Overview
The benchmark indices demonstrated robust performance with the Nifty 50 surging past the 26,200 mark during intraday trading before settling at 26,192.15, representing a gain of 139.50 points or 0.54%. The Sensex climbed 446.21 points (0.52%) to close at 85,632.68, driven primarily by banking and energy stocks.
The banking sector showed particular strength as the Nifty Bank index achieved its fourth consecutive record high, peaking at 59,440.10 and closing at 59,347.70 with a 0.22% increase. However, broader markets displayed selective participation with the BSE Midcap and Smallcap indices closing marginally lower.
Expert Stock Recommendations
SBILIFE Insurance Company
Raja Venkatraman recommends buying SBILIFE above ₹2028 with a stop loss at ₹1995 and a target price of ₹2115 for multiday trading. SBI Life Insurance Company Limited stands as one of India's leading private life insurers, established as a joint venture between State Bank of India and BNP Paribas Cardif.
Technical analysis indicates that after oscillating around the Tenkan Sen and Kijun Sen lines following a strong upward movement, the stock has formed a significant long body candle suggesting renewed bullish momentum. The stock trades at a P/E ratio of 82.77 with a 52-week high of ₹2018.80 and daily volume of 805.78K shares.
Key technical levels include support at ₹1950 and resistance at ₹2150. Investors should consider persistency, morbidity, mortality risks, and information security concerns as potential risk factors.
360ONE Wealth Management
For intraday trading, Venkatraman suggests buying 360ONE above ₹1145 with a stop loss at ₹1130 and target price of ₹1175. Formerly known as IIFL Wealth Management Ltd, 360 ONE WAM Ltd operates as a prominent Indian multinational wealth and asset management company.
The counter demonstrates strong bullish undercurrents with prices continuing their upward trajectory. The recent breach of value area resistance around ₹1170 indicates potential for further gains. With the positive Directional Index showing improvement and Thursday's strong performance reinstating buying interest, the stock appears poised for upward movement.
The stock commands a P/E ratio of 156.80 with a 52-week high of ₹1317.25 and volume of 1.13 million shares. Technical support rests at ₹1075 while resistance stands at ₹1215. Market volatility, regulatory changes, client attrition, and operational issues represent key risk factors.
Cummins India
Venkatraman's third recommendation is Cummins India for intraday purchase above ₹4380 with a stop loss at ₹4335 and target price of ₹4450. As the Indian subsidiary of American multinational Cummins Inc., the company specializes in power solutions and has shown consistent strength since October.
Technical analysis reveals that every dip into the Tenkan Sen and Kijun Sen region has attracted steady buying interest. With engineering stocks demonstrating strong upward momentum after consolidation periods, Cummins appears ready for the next leg up. Thursday's strong closing suggests potential for continued positive movement in today's session.
The stock trades at a P/E ratio of 53.79 with a 52-week high of ₹4494.40 and volume of 941.18K shares. Support is identified at ₹5575 while resistance lies at ₹6150. Compliance issues, supply chain disruptions, regulatory risks, and intense competition constitute the primary risk factors.
Market Outlook and Trading Strategy
The current market scenario indicates that bulls maintain control with the Nifty hesitating at the psychologically important 26,000 level before closing above it, signaling stronger territory. The value area resistance mentioned in previous reports has now transformed into a support zone that could assist the Nifty in staging rebounds.
Option data suggests the Nifty is approaching overbought conditions, indicating that investors should consider buying on dips around the 25,900-26,000 levels to capitalize on the bullish market trajectory. Both the Sensex and Bank Nifty are operating at all-time highs while the Nifty aims to surpass its September 2024 peak.
Market sentiment remains optimistic due to expectations of a potential India-US trade agreement and strong global technology earnings, particularly from Nvidia, which has boosted investor confidence. Despite mixed signals from global peers, domestic momentum continues to support the benchmark indices' upward movement.
Disclaimer: Raja Venkatraman is co-founder of NeoTrader with SEBI registration number INH000016223. Investments in securities market are subject to market risks. Readers should consult certified experts before making investment decisions. These recommendations represent individual analyst views and not those of Mint.
