Three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for 3 October:
APL Apollo Tubes Ltd: Buy above ₹1,735 and dips to ₹1,690 | Stop ₹1,670 | Target ₹1,855-1,875
Fortis Healthcare Ltd: Buy above ₹990 and dips to ₹955 | Stop ₹940 | Target ₹1,090-1,125
UNO Minda Ltd: Buy above ₹1,325 and dips to ₹1,300 | Stop ₹1,290 | Target ₹1,425-1,460
Stock market recap
The Indian stock market rebounded sharply on Wednesday, ending its eight-day losing streak with strong gains across key indices. The Sensex surged 716 points (0.9%) to close at 80,983, while the Nifty 50 rose 225 points (0.9%) to 24,836, driven by a broad-based rally in banking, auto, and midcap stocks. The Nifty Bank index jumped 712 points (1.3%) to 55,348 after the Reserve Bank of India proposed new regulations to boost credit flow and competitiveness.
Midcaps also saw a strong recovery, with the NSE Midcap index climbing 500 points to 57,029. Auto stocks led the charge, as Tata Motors soared 10% on better-than-expected sales data. Financial services gained momentum too—Shriram Finance rose 5% after denying stake sale rumours, while Muthoot Finance and Manappuram Finance added around 2% each, supported by record-high gold prices. Overall, the market reflected renewed investor confidence and optimism around regulatory and earnings tailwinds.
Outlook for trading
A bullish undercurrent prevailed, helping the markets move higher, as trends showed faith in the bullish story once again. The market stoked bullish sentiment on the festive day. With some strong revival yet again from lower levels, we can now look for some trended action to emerge. However, one must note how the way ahead is going to unfold and how we are pacing our steps for the next series.
The long body candle revival has once again assured that trends are beginning to take shape, as steady buying participation was witnessed throughout the day. Trading, therefore, was quite difficult through the week, and we are now back to last Friday’s high. As the last three bearish trading sessions have reset, we must revisit the overall bias once again. It would have been a wonder if one came out largely unscathed in the week. As one can see, the Daily charts show that prices have trended into strong resistance at the current close and will require additional tailwinds to fuel further upside.
The rise seen on Wednesday highlights the strong cloud resistance to the rally after a strong decline at the start of the week. The supplies at higher levels will continue to test confidence, but the recovery emerging swiftly from lower levels is signalling that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility.
While trends remained muted, we can observe that the current scenario has shifted to a ranging action, and a possible short covering action may emerge today. Now, we can observe that Nifty has now tested 24,800, which was the immediate resistance for a bullish revival.
We highlighted yesterday that the Option data had reached oversold status, and the market has responded well to this data point. While the max pain point has now moved to 24,800, that will continue to influence any buy on decline. With the Open Interest data clearly indicating that hurdles have shifted to higher levels at 25000, we can continue to look for a 30-minute range breakout to create some longs.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:APLAPOLLO (Cmp ₹1,731.10)
Why it’s recommended: APL Apollo is an Indian company and India’s largest producer of structural steel tubes, offering a wide range of products, including hollow sections, galvanised and MS black pipes. Based on the last few weeks, the slow but hesitant upward traction has managed to move the prices above the clouds. We can observe that the strong upside, combined with a strong momentum play, suggests a strong possibility of more upward traction.
Key metrics:
P/E: 133.36,
52-week high: ₹1,935,
Volume: 1.04M.
Technical analysis: Support at ₹1,650, resistance at ₹1,935.
Risk factors: Changes in RBI regulations affecting capital requirements, as well as social risks related to data security and customer privacy, remain vulnerabilities.
Buy at: Above ₹1,735 and dips to ₹1,690.
Target price: ₹1,855-1,875 in 1 month.
Stop loss: ₹1,670.
FORTIS (Cmp ₹989.65)
Why it’s recommended: Fortis Healthcare is a leading integrated healthcare provider in India, with a network of hospitals, diagnostics, and day-care speciality facilities. The charts show constant pullback into support zones of the TS & KS Bands, which are helping the prices stage a strong move to the upside. A long-body candle that has been formed on every dip is igniting some bullish enthusiasm. A positive outlook has emerged as prices demonstrate a strong upward trend. Can look to go long.
Key metrics:
P/E: 840.54
52-week high: ₹982.50
Volume: 2.57M.
Technical analysis: Support at ₹900, resistance at ₹1,200.
Risk factors: Economic slowdowns, a high doctor attrition rate, the potential for unplanned capital expenditure weakening its balance sheet, ongoing litigation and regulatory risks.
Buy at: Above ₹990 and dips to ₹955.
Target price: ₹1,090-1,125 in 1 month.
Stop loss: ₹940.
UNOMINDA (Cmp ₹1,324.40)
Why it’s recommended: UNO Minda Ltd. is a leading global manufacturer and supplier of innovative automotive components and systems. After consolidating for a while, the long-body green candle is seen reviving from the neutral zone, which indicates a strong push to the upside. With the long body candle being formed and the RSI moving above 60, we can examine how this counter shapes over the next few days. Consider going long.
Key metrics:
P/E: 86.32,
52-week high: ₹1348.75,
Volume: 774.98K.
Technical analysis: Support at ₹1260, resistance at ₹1500.
Risk factors: losing market share, price fluctuations and supply shortages.
Buy at: Above ₹1,325 and dips to ₹1,300.
Target price: ₹1,420-1,460 in 1 month.
Stop loss: ₹1,290.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.