Stocks to buy: Raja Venkatraman recommends three stocks to buy today —13 March
Subscribe to enjoy similar stories. Trading started on Wednesday with some apprehension but the strong resurgence by the bulls surprised the bearish camp. Taking some strength from the sharp upward traction for the entire last week, there's a bullish resurgence.
The trends though are not indicating any sign of reversal, hence we should continue to look for trading rather than investing opportunities. The markets displayed volatility once more, ending the day in red with the Nifty closing below 22600. Early weakness was driven by IT and banking heavyweights reacting to their earnings reports, dragging the benchmark indices lower.
CPSE, public banks, and metal sectors seem to be on a revival mode and could look to extend their rise this week as well. The energy sector is also showing some brief indication of revival and could show some momentum next week. Despite some positive exuberance from the Nifty, we are at crossroads as Bank Nifty does not seem to offer much room on the upside.
Nifty is now showing some rebound again and is now testing the supports around 22500 that we have been mentioning. The up move will face challenges at immediate value area resistances on the daily chart around 22600 and then 22800. A move above this area would force the bearish camp to rethink.
The fight between both groups to claim dominance and the possibility of the markets turning lower garnered momentum. The pullback is currently being bought into as investors are looking for a revival. While the trends show some buying, we could be entering a critical phase as the week is coming to a close.
Read on livemint.com