Raja Venkatraman recommends three stocks for 7 October

Why it’s recommended: Petronet LNG Limited is India's premier liquefied natural gas (LNG) importer and a prominent energy joint venture. A sharp trend in this counter showed more promise as the prices remained firm despite turbulent market scenario. The support offered by Tenkan Sen and Kijun Sen that has created an opportunity for re-entry. The steady move seen in Relative Strength Index (RSI) from the neutral region around 50 zone holding good indicates that we can expect the upward drive to continue.

Key metrics:

P/E Ratio : 10.80,

52-week high: ₹326.40,

Volume: 5.1M.

Technical analysis: Support at ₹280, resistance at ₹975.

Risk factors: Geopolitical & Supply Concentration Risk and Terminal Underutilization Risk .

Buy : above ₹298

Stop loss: ₹288

Target price: ₹325 (2 Months)

Stock market recap

All broad market indices ended in the green, with FMCG emerging as the top sectoral gainer, rising 1.67%, followed by telecom, consumer durables, and financial services.

On the flip side, healthcare stocks lagged. Heavyweights such as ITC, Bajaj Finance, ICICI Bank, Reliance, Bharti Airtel, and TCS were among the key gainers, while HCL Tech, Infosys, Sun Pharma, and Asian Paints slipped. Analysts noted that easing crude prices near $102 per barrel and softer US jobs data provided relief, reducing fears of aggressive Fed tightening.

Technically, Nifty reclaimed the 22,500 mark, with resistance seen at 22,650–22,800 and support at 22,400–22,350, suggesting the rebound is more of a relief rally than a confirmed trend reversal. Persistent FII selling and elevated US bond yields remain key overhangs.

Outlook for trading

Strong undercurrent on Tuesday helped the Nifty survive the volatility of the market and ensured that the rise sustained above critical support zones as the market was whipped around quite a bit. At the moment the global trends remain the key drivers of the sentiment. There really isn’t much by way of local news flow to contain the volatility induced.

A follow-through seen to the lower shadows seen on Monday to close on the positive side ensured that the bullish vibes extended into the next day. Trading therefore was quite difficult thru the week and it would have been a wonder if one came out largely unscathed in the week. As one can see the Daily charts the prices have tread into strong supports and with the encouraging newsflow would look to seek help of at the current close and will need more tailwinds that can fuel more upside.

A sideways action had forced us to reconsider the trends as market have been struggling to show some revival. However, the lower levels seen at the start of the month should see the selling tapering off . As the last few days have been showing a higher low, we can conclude that the bullish momentum is making a comeback. We should note that the supplies at higher level continues to test the confidence but the recovery that is emerging swiftly from lower levels is signalling that the recent highs will once again could be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.

Nifty has managed to hold itself above the 22200 zone effectively that we have been mentioning and will now have to graduate to move above 23000 that has now opened door towards 23100 which acts as the next big hurdle as the immediate resistance for some bullish moves. With the Open Interest data clearly indicating a revival one should keep tracking a 30-minute range breakout on trading continues to be an important metric for creating some longs. One should keep looking at every dip as a buying opportunity.

The start of the week underscored a clear tug-of-war between bargain hunters and persistent global headwinds. While frontline indices attempted a rebound early on, sustained foreign investor selling and weakness across key sectors capped the upside. Sellers continue to dominate the broader trend, making any recovery fragile. In this environment, selective buying remains the prudent approach, with traders advised to focus on stock-specific opportunities rather than aggressive index-level exposure.

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Raja Venkatraman

Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.