Indian stock markets demonstrated remarkable resilience on Wednesday, 19 November, extending their bullish momentum despite a downturn in global equities. Benchmark indices Sensex and Nifty both climbed 0.6%, building on a robust six-session winning streak observed from November 10 to 17. This performance stands in stark contrast to Wall Street, which has faced declines in seven of the last nine sessions, largely driven by corrections in AI-focused stocks.
Expert Stock Recommendations for Today's Trade
Raja Venkatraman, Co-founder of NeoTrader, has identified three promising stocks for traders and investors on 20 November. His analysis combines technical indicators with fundamental insights to provide a comprehensive view of each opportunity.
VOLTAS: A Bullish Revival in the Making
Voltas Limited, a leading Tata Group multinational specializing in home appliances and engineering solutions, is showing signs of a positive trend reversal. The stock, currently priced at ₹1401.80, has been oscillating but is now attempting a revival aligned with the overall bullish market sentiment.
Venkatraman recommends a buy above ₹1402 for a multiday trade. The setup suggests a potential rise, with the price moving above the cloud region and forming a long body bullish candle. Accompanying this is a pick-up in trading volume, reinforcing the positive outlook. The technical analysis identifies support at ₹1350 and resistance at ₹1490. Investors should set a stop loss at ₹1375 and target a price of ₹1445.
Key metrics for Voltas include a P/E ratio of 86.02 and a 52-week high of ₹1859.65. Potential risks include climatic vagaries, intense competition leading to margin pressure, and collection and credit risks.
BSE: Riding a Strong Bullish Undercurrent
BSE Limited, Asia's oldest stock exchange, is exhibiting a strong bullish undercurrent. With a current price of ₹2,898.30, the stock has surpassed a key value area resistance around ₹2850, opening the possibility for further upward traction.
This is an intraday pick, with a recommendation to buy above ₹2900. The RSI indicator suggests fresh moves are unfolding, and the strong showing on Tuesday has reinstated buying interest. The trade setup advises a stop loss at ₹2870 and a target price of ₹2960.
The stock's technical structure shows support at ₹2692 and resistance at ₹3100. Its P/E ratio stands at 65.15. Traders should be mindful of risk factors such as regulatory compliance requirements, intense market competition, and broader geopolitical uncertainties.
LTIMindtree: Capitalizing on IT Sector Strength
LTIMindtree Ltd., a global technology consulting firm, has been on a sharp upward trajectory since October. The stock, currently at ₹5,972, has found steady buying interest on every dip. With the IT sector holding firm, the stock is poised for an upward drive.
Venkatraman suggests an intraday long position, buying above ₹5972. A strong closing witnessed yesterday is expected to lead to a positive run in today's session. The recommended stop loss is ₹5890, with a target price of ₹6105.
Technical levels indicate support at ₹5575 and resistance at ₹6150. The company has a P/E ratio of 36.80. It is crucial to note the associated risk factors, which include gold price volatility, regulatory risks, and intense competition in the IT services space.
Market Outlook and Technical Perspective
The hesitation seen during the weekly expiry was decisively laid to rest by Wednesday's strong close. This has bolstered hopes that the market will surpass its recent highs. The resistance level around 26,100 for the Nifty is slowly diminishing, increasing the possibility of a new record high.
Option data is now at an interesting juncture, hinting that chart resistances could be exceeded. The Max Pain point has inched up to 26,000, suggesting a potential upward march. Strong Put writing at lower levels indicates that the 25,700 zone continues to be a strong line of defence for the bulls. The buy-on-dip level can now be revised to 25,800 to explore the bullish side of the markets.
Disclaimer: Raja Venkatraman is the co-founder of NeoTrader (SEBI Reg. No. INH000016223). Investments in securities are subject to market risks. The views and recommendations are those of the individual analyst and do not represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
