Stocks to buy: Raja Venkatraman recommends three stocks for today — 24 January

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Subscribe to enjoy similar stories. On 23 January, the Nifty and the Sensex indices retained their gains but finished below their intraday highs. This was largely due to a strong surge in IT and pharmaceutical stocks that improved market sentiment.

However, declines in banking and oil and gas stocks capped the overall market rally. The market has been on a downward trajectory week by week. Overall, the trends are showing a steady rise, but a lot should be considered for an opportunity to short unless the Nifty decisively breaks through the resistance zone of 23,500-23,700.

At the moment, there is limited clarity but trends are showing signs of a revival as highlighted yesterday. However, absence of triggers continues to keep the entire market in the dark. The reaction to the results is triggering some momentum that is helping the traders participate in the market action at the moment.

As lack of clarity continues to exist there exists great difficulty in sustaining the trends and moving higher. Hence, we need to step back and decide on the next course of action. The option data suggests that resistances in the Nifty have now moved to 25,000 where there is a steady call shorting that continues to curb any bullish tendency.

Immediate supports continue to remain at 24,500 forcing the range to travel between 24,500 and 25,000 this week. As the put call ratio (PCR) has moved to 1.05 in the Nifty, indicating some bullishness stepping in while PCR at 0.55 in the Bank Nifty could be reaching oversold levels. Currently, the Bank Nifty has to clear the 50,000 mark.