Raja Venkatraman recommends three stocks for 10 August | Stock Market News

Stock market recap: The market has finally broken through its resistance walls, with bullish fervour taking charge after prolonged hesitation. Despite intermittent shakeups, the sustained upward momentum has injected fresh confidence into traders. The IT sector is spearheading this rally with a powerful surge, while the midcap space is pulling in retail participation, amplifying the enthusiasm across the board.

Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)

Grasim Industries Ltd: Buy above ₹3,330 | Stop ₹3,210 | Target ₹3,650 (multiday)

LTM Ltd: Buy above ₹4,660 | Stop ₹4,475 | Target ₹5,100 (multiday)

Granules India Ltd: Buy above ₹875 | Stop ₹825 | Target ₹975 (multiday)

Bullish enthusiasm returned to Dalal Street during the week of 3-7 August, but this was not a straight-line rally. The market had to absorb sharp intraday swings, changing global cues, renewed worries around crude oil and financial stocks, and the introduction of the new Closing Auction Session (CAS). As a result, the week offered an important reminder: the larger trend may remain constructive, but the path for traders is becoming more volatile and less predictable.

The week began on a strong note. On Monday, 3 August, the Nifty 50 closed at 24,774.30, gaining 390.70 points, or 1.60%, while the Sensex added 544 points. Falling crude oil prices, easing geopolitical concerns and broad-based buying supported sentiment. Information technology stocks, select financial names, and several heavyweight index constituents led the advance.

The Nifty IT index gained more than 2%, while the Nifty Midcap 100 and Nifty Smallcap 100 also participated, rising around 0.7% and 1.2%, respectively. However, the sharp move in the final minutes was not entirely a conventional technical breakout. August 3 was also the first day of the new CAS mechanism for stocks in the futures and options segment. Under the new system, continuous trading ends at 3:15 p.m.; the reference price is calculated as the volume-weighted average price between 3:00pm and 3:15pm; and eligible stocks then undergo a closing auction. The final index value is consequently influenced by the auction-based closing prices of its constituents.

By 7 August, the behaviour had become more orderly, although volatility remained visible. The Nifty opened at 24,538.90 and closed at 24,570.65, down 65.35 points, or 0.27%. The Sensex declined 455.59 points to 78,499.17, while Bank Nifty fell 0.55% to 57,746.45. Financial stocks, particularly select private-sector lenders and non-banking financial companies, weighed on the benchmarks. Auto and IT stocks provided some support, preventing the broader market from slipping into a deeper decline.

As we step into the week ahead, the global backdrop will remain equally important. The euro’s strength against the dollar and signs of improving sentiment in the Eurozone have contributed to pressure on the US dollar. Currency movements are increasingly influencing global liquidity, emerging-market flows and the attractiveness of Indian equities. At the same time, elevated crude oil prices and geopolitical developments remain potential sources of sudden volatility. Domestic earnings, macroeconomic data, RBI-related developments and financial-sector news could therefore determine whether the Nifty extends its gains or enters another consolidation phase.

On the domestic front, we observed that the encouraging feature of CAS-related volatility was that it had declined considerably by Friday. At the end of continuous trading, the Nifty was around 24,557 and later closed at 24,570.65 after the auction. The relatively small difference suggested that participants were beginning to understand the new process and adjust their orders accordingly. Nevertheless, the episode highlights the need to distinguish between normal market volatility and volatility caused by changes in market infrastructure.

From a technical perspective, the broader structure remains positive as long as the Nifty sustains above its recent support region. The weekly chart continues to favour a buy-on-dips approach rather than chasing sharp breakouts. The index has shown resilience after every periodic shakeout, and the moving-average structure on the higher time frames continues to indicate that momentum remains supportive. IT has emerged as the principal leadership sector, while the midcap segment continues to attract retail participation. The median line of the modified Pitchfork continues.

The recent price action also reinforces the importance of a mean-reversion approach. Breakouts have not always delivered immediate follow-through, particularly when they occur close to major events or during the new auction period. A more disciplined strategy would be to wait for a breakout to stabilize, allow prices to retest the breakout zone, and then look for evidence of renewed buying. This approach can reduce the risk of entering during an emotionally stretched move.

Why it’s recommended: ⁠Grasim Industries Ltd has grown into a major Indian conglomerate producing cellulosic fibres and diversified chemicals, alongside major ventures in paints, digital platforms, and heavy subsidiaries. After some consolidation, prices took some time to stage an upmove and have since been contemplating the next move. Ahead of the numbers, the strong thrust above its value area resistance at ₹3,230 has been quite dramatic, considering the speed of the price rise. The momentum is expected to be lower only to attract some buying interest to stage a fresh breakout at the start of 2026. From the setup, it looks quite ominous and can lead to a strong upward move in the coming weeks. Go long.

Technical analysis: Support at ₹3,200 | Resistance at ₹3,800.

Risk factors: Industry cyclicality, high promoter pledge levels, and execution challenges.

Why it’s recommended: ⁠ LTM (formerly known as LTIMindtree Ltd and L&T Infotech) is a major global technology consulting and digital solutions company based in Mumbai, India. Every pullback has seen steady buying interest. Now, with prices reacting at resistance, there is some profit booking. The formation of a shooting star at the high is already signalling some mild pullback. Further, the formation of a bearish engulfing shall only make it difficult for the upward traction to resume. Go long.

Technical analysis: Support at ₹4,300 | Resistance at ₹5,300.

Risk factors: High attrition, margin compression and data privacy compliance.

GRANULES: Buy above ₹875, stop ₹825 target ₹975 (Multiday)

Why it’s recommended: ⁠ Granules India Limited is a major vertically integrated pharmaceutical manufacturing company that makes active pharmaceutical ingredients (APIs), preformulation intermediates (PFIs), and finished dosages (FD) like tablets and capsules. The steady fall since January 2026 has formed a base since March, and is attempting a recovery to finally move above the cloud region. The prices have also seen a steady increase in volumes, combined with the rising RSI, indicating that there is no sign of let-up in momentum. A break above 3300 was a key event that is now initiating us to go long.

Technical analysis: Support at ₹800, resistance at ₹1000.

Risk factors: Regulatory vulnerabilities, heavy geographic and product concentration, supply chain dependencies, and macroeconomic pressures.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.

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