Stocks to buy: Raja Venkatraman recommends three stocks for today—8 January

livemint.com:

Subscribe to enjoy similar stories. Even though there was a brief recovery on 7 January, markets still encountered notable selling pressure during attempts to bounce back, suggesting that bearish sentiments prevail. Interestingly, the volatility index (India VIX) decline indicates a reduction in participant anxiety.

Considering these mixed indicators, it’s advisable to maintain a "sell on rallies" approach unless the index convincingly breaks past the 24,250 resistance level. Moreover, with the earnings season on the horizon, traders should concentrate on selective stock positioning and emphasize effective risk management strategies. Trends remain muted as stock-specific action dominatesIt is quite challenging for traders as well as investors as they try to make sense of the current volatility.

With rampant movement on either side, stocks with positive tailwinds from Q3 numbers are seen witnessing some buying interest, while those that are delivering muted or negative numbers are being punished. The outlook, therefore, continues to be a sell on rallies. The hope now rests with a positive divergence that is developing on the daily chart that can evolve into a strong recovery.

While we wait for some supportive triggers that emerge from global cues, the trends outside India do not seem to hint much in response to the virus attack. The option data indicates not much of a change in open interest as the maximum pain point is at 23900, highlighting that 24000 call writing continues to hold firm, indicating that the trends are under pressure. One needs to see how trends develop in the coming sessions.