Stocks to buy: Raja Venkatraman recommends three stocks for today — 16 December

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Subscribe to enjoy similar stories. On 13 December, Friday, the trend remained choppy, but the bulls survived the onslaught of the bears and forge ahead as we near the mid of the month. The supports of 24,600 mentioned were broken decisively only to be regained quite quickly.

However, the absence of continued trends has made everyone suspect the continuance of the trends in December, too. The Nifty maintains the bullish momentum, however, the global cues keep a check on the bullish exuberance. As watchful bears await the opportunity to re-enter and evaporate the gains, we need to tread the way carefully.

An eventful month is unfolding, and this could possibly decide the course of action in the next few days. Weekly charts indicate that the Nifty is definitely on much firmer ground despite a fair bit of hesitation last week. The lower shadows indicate that the declines were used to buy into.

Currently, the trends are awaiting some trigger, we should be looking for some clarity to emerge by the end of next week. This is also highlighted by the momentum indicator, which we have used this week, called ADX and Directional Index lines. It showed some reaction last week and is now set for a resumption of the trend.

As macro factors begin to get absorbed, we shall be able to witness the emergence of a new phase. For the Nifty, we still continue to remain a buyer on declines and dips near 24,500 remains a buy. We need to abandon the bullish bias once the Nifty closes below 24,500.