Market Expert Raja Venkatraman Shares His Top Stock Picks for January 13
Raja Venkatraman, co-founder of NeoTrader, has identified three promising stocks for investors to consider on January 13. His recommendations come as Indian equity markets show signs of recovery after a recent downturn.
Indian Markets Stage a Smart Rebound
Indian stock benchmarks ended Monday's session in positive territory. This marked a welcome reversal after five consecutive days of losses. The NSE Nifty recovered strongly from an early dip to close near the day's high. This rebound reflects renewed confidence among investors.
Markets opened cautiously despite some supportive global signals. Losses extended through the first half of trading. However, a sharp mid-session recovery took hold. Optimism around ongoing India-US trade talks fueled the turnaround. Officials indicated constructive progress in discussions.
The Nifty settled firmly higher. The Sensex also posted notable gains. This performance underscores resilience in major frontline stocks. Broader markets, however, did not fully participate in the recovery. The midcap index closed slightly lower. Smallcap stocks continued to underperform. This pattern highlights selective buying focused primarily on large-cap companies.
Raja Venkatraman's Three Stock Recommendations
Here are the three stocks recommended by Raja Venkatraman for trading on January 13.
MedPlus Health Services Ltd (CMP: ₹846.25)
Why it's recommended: MedPlus is India's second-largest pharmacy retail chain by both revenue and store count. The company operates an omni-channel platform. This allows customers to purchase products through physical stores.
After consolidating for several months, the stock price moved decisively higher on Monday. It formed a large body candle on the charts. The positive Directional Indicator (DI) is also rising. This suggests emerging positive momentum. Venkatraman advises initiating a long position.
Key Metrics:
- P/E Ratio: 192.56
- 52-week high: ₹1052.05
- Volume: 202.27K
Technical Analysis: Support is identified at ₹797. Resistance lies at ₹975.
Risk Factors: The company faces intense competition in a fragmented retail market. It has significant working capital requirements. There is also substantial promoter share pledging.
Trading Strategy:
- Buy: Above ₹848
- Stop Loss: ₹818
- Target Price: ₹948 (2 Months)
Asian Paints Ltd (CMP: ₹2896.40)
Why it's recommended: Asian Paints is India's largest paint and home décor company. It manufactures, sells, and distributes paints and coatings. The company also offers home décor services.
The stock reacted into a strong support zone around the cloud support region. It formed a nice rounding pattern. A strong long body candle near the Tenkan-Sen and Kijun-Sen bands suggests potential upside if the market rebounds. A rise in the DI indicates a long opportunity for a push to higher levels. Venkatraman recommends going long now.
Key Metrics:
- P/E Ratio: 72.01
- 52-week high: ₹2985.50
- Volume: 1.74M
Technical Analysis: Support is at ₹611. Resistance is at ₹690.
Risk Factors: The company deals with volatile raw material costs, including crude oil derivatives and titanium dioxide. Subdued consumer demand may lead to downtrading. There are also challenges in its home decor segment.
Trading Strategy:
- Buy: Above ₹2900
- Stop Loss: ₹2830
- Target Price: ₹3050 (2 Months)
BSE Ltd (CMP: ₹2790.75)
Why it's recommended: BSE Ltd is Asia's first and oldest stock exchange. It is a cornerstone of the Indian capital market.
After a strong upward move, prices are currently taking a breather. Momentum has held steady in recent trading sessions. The value resistance region around ₹2750 has been surpassed. Strong upside emerged in the last trading session. The Average Directional Index (ADX) is also charging higher. This indicates potential for an upward bounce.
Key Metrics:
- P/E Ratio: 69.19
- 52-week high: ₹3030
- Volume: 7.69M
Technical Analysis: Support is at ₹510. Resistance is at ₹541.
Risk Factors: The exchange faces regulatory changes and intense market competition. It is susceptible to macroeconomic conditions. There are also operational vulnerabilities.
Trading Strategy:
- Buy: Above ₹2795
- Stop Loss: ₹2720
- Target Price: ₹2925
Trading Outlook and Market Analysis
The strong resolve to move higher has met with good demand. Trends have begun to hold over the last few days. The revival of long body candles assures that trends are taking shape. Steady buying participation was witnessed throughout the day. Price levels have returned to last Wednesday's high.
The fall seen on Tuesday during expiry tested the 78.6% Fibonacci retracement level of the recent rise. With a bullish bias and positive news flow, possibilities of a revival have emerged. In such a situation, investors should remain calm and hold for potential recovery.
The sharp rise seen on Tuesday highlights strong Kijun-Sen support. The rebound could extend after last week's strong decline. Supplies at higher levels will continue to test confidence. However, the swift recovery from lower levels signals that highs will continue to attract demand.
Strong bullish possibilities are emerging. Weekly charts are beginning to show aggressive potential to move higher. As positive cues continue, investors should look to participate at every dip. The market has retained a positive bias.
With results season generating heat and geopolitical news driving volatility, navigating current trends requires careful attention. The market continues to offer numerous opportunities. Sector rotation will be at work. The selected candidates display steady action from both sides until new signals emerge.
For undertaking short positions, traders need to see Nifty move above 25500. This is the immediate support as per Open Interest data. The earlier breach did occur, indicating trends remain delicately poised. The best approach is to watch for a 30-minute range breakout on Friday. Traders can consider positions on either side as trends remain tentative. Expect some resistances to kick in.
While index trends are still unclear, there is plenty of action in individual stocks. Investors should restrain from entering short positions in Nifty. Await confirmation for Nifty to move above 25900. View any sustained move below that level as a clear sign that bullish conviction is waning. Resistances have moved from 26250 to 26000. Open interest data suggests the road ahead is more open.
Raja Venkatraman is the co-founder of NeoTrader. His SEBI-registered research analyst registration number is INH000016223. Investments in securities are subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantees performance of the intermediary or provides any assurance of returns to investors.
Disclaimer: The views and recommendations in this article are those of individual analysts. They do not represent the views of Mint. Investors are advised to consult certified experts before making any investment decisions.
