Benchmark equity indices Sensex and Nifty ended higher on Monday after a spell of heavy selling. Sensex rose 472.77 points to settle at 72,382.47. Amid this market recovery, Raja Venkatraman recommended three stocks for 6 October. He suggested buying Cyient above ₹1,142 and Redington above ₹415 for potential multiday gains.
Stock market recap: Benchmark equity indices Sensex and Nifty ended higher on Monday, rebounding from a spell of heavy selling as easing oil-supply concerns and positive global cues lifted investor sentiment.
Softer-than-expected US jobs data also eased fears of further monetary tightening by the US Federal Reserve, supporting gains across global markets.
The Sensex rose 472.77 points, or 0.66%, to settle at 72,382.47, while the broader Nifty advanced 133.80 points, or 0.60%, to close at 22,555.75.
On the Sensex, ITC, Eternal, Bharti Airtel, Bajaj Finance, Adani Ports, ICICI Bank, Reliance Industries and Larsen & Toubro were among the major gainers.
HCL Tech, HDFC Bank, Sun Pharma, Infosys, and Asian Paints were among the laggards.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
CYIENT [current market price - ₹1140.20 - Buy above ₹1,142, stop loss ₹1,088, target price ₹1,265 (Multiday)]
Why it’s recommended:Cyient is a global engineering and technology solutions company founded in 1991 and headquartered in Hyderabad, India. Since June this year there has been a strong surge marked by profit booking that has seen the prices taking supports at the Tenkan Sen and Kijun Sen. The resumption post the support has been encouraging. A strong thrust always attract some buying interest. With the Average Directional Index after a pullback is seen crossing important thresholds, it can lead to some strong upward move in the coming weeks. Go long.
Key metrics:
P/E Ratio : 66.49,
52-week high: ₹1226.25,
Volume: 1.62M
Technical analysis: Support at ₹1000, resistance at ₹1300.
Risk factors: Client concentration & contracts and low operating margins.
Buy : above ₹1140.
Stop loss: ₹1088.
Target price: ₹1265 (2 Months)
REDINGTON [current market price ₹412.75 - Buy above ₹415, stop loss ₹394, target price ₹460 (Multiday)]
Why it’s recommended: Redington Ltd is a major global technology distributor and supply chain solutions provider headquartered in Chennai. Since April, every dip in this stock has seen some demand coming in helping revive prices. This counter has been in a steady uptrend. The last few months the stock has shown some strong push to the upside and every dip in the prices have been brief to resume its upward journey. Despite volatile market conditions and profit booking, the stock has managed to form higher lows and the strong action with volumes seen this week highlights steady buying. With the Relative Strength Index (RSI) not giving up the 60 levels, we can expect the upward drive to continue.
Key metrics:
P/E Ratio : 23.59,
52-week high: ₹419.55,
Volume: 10.14M.
Technical analysis: Support at ₹380, resistance at ₹470.
Risk factors: Razor-thin operating margins, heavy vendor concentration and intensive working capital demands.