Stocks to buy: Raja Venkatraman recommends three stocks for today — 20 January

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Subscribe to enjoy similar stories. The week started with some apprehension but the strong resurgence by the bulls surprised the bearish camp. The sharp upward traction for the entire last week signalled a bullish intent.

The trends do not indicate any sign of reversal; hence, we should continue looking for bullish opportunities. The markets displayed volatility once more, dropping nearly half a percent after three days of consecutive gains. Early weakness was driven by IT and banking heavyweights reacting to their earnings reports, causing the benchmark indices to drop.

CPSE, public banks, and metal sectors seem to be in revival mode and could look to extend their rise this week as well. The energy sector is also showing some brief indication and could look to show some momentum next week. Despite some positive exuberance from the Nifty, we are still at a crossroads as Bank Nifty does not seem to offer much room on the upside as we head towards the end of the week.

Also Read: Analysts love these four stocks in this struggling sector As far as Nifty is concerned, we are noticing a doji pattern on the weekly charts that intends to give a break to the decline in the coming days. The question: will we get a pre-budget rally?At the moment, the trends remain muted as there are not many cues emerging. However, the result season is producing some strong numbers in comparison to the fears about the continuation of Q2.

This has helped the markets stabilize. We need to see how the trends unfold. Open interest data reveals that the lower levels seem to be sealed at the moment around 23000 as the market gapped up quite swiftly in the last week despite the hesitation that was shown earlier by the market participants.