Stocks to buy: Raja Venkatraman recommends three stocks for today—31 December
Subscribe to enjoy similar stories. Benchmark indices fell on the penultimate trading day of 2024, dragged down by losses in banking stocks amid weak global cues. Most global markets traded weak as elevated US treasury yields and the prospect of fewer US rate cuts than earlier anticipated weighed on sentiment.
Nifty could not persist with the constant selling pressure and was subjected to huge volatility that pushed the Nifty towards 23,900 points yet again, but the sell-off at these levels dragged back the Nifty. Trends were similar in Bank Nifty as after some promising move above 52,000 the index gave up quite quickly, leading to the trends dissipating across the board. Barring pharma, which continued its bullish outlook, other sectors gave up the upward bias quite quickly, leading to some sharp downside, which persisted through the day.
The option data highlights that the max pain is around 23,900, which marks it now as an inflexion point. With steady increase in Call writing at these levels one should be careful as the market is on a sell on rise mode. As the Put Call Ratio (PCR) is moving above 1 there is some Put writing at important supports around 23,500, hinting at a possibility of some upside that can emerge from lower levels.
Trends remain cautious, making us trade on either side of the market trends. Metal stocks continue to attract selling pressure and are in line with market sentiment, leading to some sharp decline in prominent metal names. The last few days the momentum has been generating bearish bias.
With key supports around 450 broken, one can consider going short in this counter. The pharma industry is attracting demand while the broader markets are struggling. The option data of Lupin reveals that
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