Market Expert Raja Venkatraman Unveils Three Premium Stock Picks for February 6
In an exclusive market analysis, Raja Venkatraman, co-founder of NeoTrader, has recommended three key stocks for investors to consider on Friday, February 6. This comes against the backdrop of a volatile trading session on Thursday, February 5, where the Indian equity markets witnessed significant profit booking amid weak global cues.
Market Recap: Heavy Losses on February 5
The Indian stock market experienced a sharp downturn in intraday trade on Thursday, with the Sensex plunging to an intraday low of 83,151.62 and the Nifty 50 falling below the 25,650 mark. By the close of trading, the Sensex had declined by 504 points, or 0.60%, settling at 83,313.93, while the Nifty 50 ended at 25,642.80, down 133 points, or 0.52%. The broader market indices also suffered, with the BSE 150 MidCap Index dropping 0.43% and the BSE 250 SmallCap Index declining by 0.81%.
Sectoral performance was mixed, with metal stocks leading the decline as the sectoral index fell nearly 2%, reversing a 6% rally seen over the previous three sessions. This weakness was largely attributed to a stronger US dollar, which made global commodities more expensive for non-dollar holders, thereby pressuring prices. Pharma stocks also contributed to the negative sentiment, while IT stocks showed resilience with a modest rebound after a steep 6% fall in the prior session. PSU banks managed to stay in the green, providing some support to the overall market breadth.
Technical Outlook and Market Dynamics
From a technical perspective, the Nifty appears to be in a consolidation phase. The index has formed a near-term support around 25,500, coinciding with the 20-day moving average, while resistance is visible near 25,850. Momentum indicators such as the RSI have cooled off from overbought territory, suggesting that the recent rally has lost steam and markets may remain range-bound in the short term.
Option data reveals that the Max Pain point has slid to 25,650, indicating that the market is biding time ahead of key events like the RBI policy announcement. The Put-Call Ratio (PCR) has slipped to 0.64, suggesting that probable open interest support has been reached. Bank Nifty remains a preferred index due to its stronger trend dynamics, even as the broader index debates direction.
Raja Venkatraman's Top Stock Recommendations
Here are the three stocks recommended by Raja Venkatraman for February 6, with detailed analysis and technical parameters:
Jindal Steel
Current Market Price: ₹1178
Recommendation: Buy above ₹1180
Stop Loss: ₹1150
Target Price: ₹1265 (Multiday trade)
Why it's Recommended: Jindal Steel Ltd is one of India's leading integrated steel producers with a significant global presence. Technical analysis indicates a strong thrust above the cloud region, suggesting bullish momentum that could drive an upmove in the coming weeks. Fresh buying is emerging as momentum picks pace, making it an attractive long position.
Key Metrics: P/E Ratio: 36.21, 52-week high: ₹1180.90, Volume: 1.09M
Technical Analysis: Support at ₹1090, resistance at ₹1290
Risk Factors: Raw material price volatility, high debt levels, regulatory and geopolitical changes, and operational disruptions
Indian Bank
Current Market Price: ₹879.50
Recommendation: Buy above ₹880
Stop Loss: ₹860
Target Price: ₹975 (Multiday trade)
Why it's Recommended: Indian Bank, a major Indian public sector bank, offers a full range of retail, corporate, and digital banking services. Post-Budget and strong Q3 earnings, the stock has absorbed profit booking well, demonstrating resilience and setting the stage for a sharp revival. The long body candle seen on Wednesday amid volatility highlights potential for higher levels.
Key Metrics: P/E: 9.86, 52-week high: ₹923.15, Volume: 904.73K
Technical Analysis: Support at ₹153, resistance at ₹178
Risk Factors: Tightening liquidity, evolving regulatory requirements, and shifting household savings
DMART (Avenue Supermarts Ltd)
Current Market Price: ₹3934.10
Recommendation: Buy above ₹3940
Stop Loss: ₹3820
Target Price: ₹4225 (Multiday trade)
Why it's Recommended: DMart is a leading Indian value retail supermarket chain. A rounding pattern on daily charts has fueled recovery in recent months, with the sharp fall over the last six months looking to turnaround as FMCG stabilizes post-Budget. A strong push above immediate value resistance around ₹3800 augurs well for prices.
Key Metrics: P/E Ratio: 82.15, 52-week high: ₹4916.40, Volume: 867.14K
Technical Analysis: Support at ₹3750, resistance at ₹4250
Risk Factors: Intense competition, pressure on operating margins, and high stock valuation
Investment Disclaimer and Final Notes
Raja Venkatraman is the co-founder of NeoTrader and holds SEBI registration number INH000016223. It is crucial to note that investments in securities are subject to market risks. Investors are advised to read all related documents carefully before investing. Registration granted by SEBI and certification from NISM do not guarantee performance or assure returns.
The views and recommendations provided in this article are those of individual analysts and do not represent the views of Mint. Investors should consult with certified experts before making any investment decisions.
