Raja Venkatraman recommends three stocks for 18 August | Stock Market News
Persistent sluggishness in the market has fueled growing uncertainty, as broader indices show little interest in moving in either direction. Without a clear catalyst, investor sentiment remains hesitant heading into the remainder of the August derivative series.
Buy above ₹1890, stop ₹1790, target ₹2150 (Multiday)
Buy above ₹960, stop ₹910, target ₹1060 (Multiday)
Buy above ₹658, stop ₹625, target ₹725 (Multiday)
Indian equities delivered a mixed close on Monday, August 17, as supportive global cues clashed with domestic headwinds. Following a volatile session driven by derivatives expiry, the Nifty 50 slipped 0.12% to 24,366.40, while the Sensex edged up 0.18% to 78,220.15. Weighing on market sentiment were elevated crude prices near $88 per barrel, which fueled renewed fears around inflation and fiscal health.
Banking and financial stocks dropped roughly 0.4% amid uncertainty over the RBI’s draft loan-pricing guidelines, which threaten margins and earnings visibility. In contrast, broader markets saw selective buying, with small-caps and mid-caps advancing 0.4% and 0.3%, respectively.
Tata Motors jumped 3.5% on strong quarterly numbers and robust demand, while wider Tata Group shares stabilized after earlier leadership-driven declines. With 10 of 16 sectors ending in the red, investors clearly favored caution despite positive international sentiment.
Market sentiment continues to cool as overarching trends fail to build steady upward momentum. Over recent sessions, price action has remained capped, repeatedly failing to break higher. The formation of lower lows has pushed many market participants to the sidelines.
Looking at the technical setup, however, the trend remains range-bound due to reliable support at lower levels. Even so, the appearance of small-bodied candles highlights growing hesitation, signaling that a decisive trend could break out at any moment.
Expected momentum remains noticeably absent, prompting a re-evaluation of the overall market picture. A sustained directional move is unlikely to take shape without concrete news on the geopolitical front regarding an end to the war. At this juncture, we must carefully reconsider our positioning, as hard-to-read trends will require a highly selective approach.
We are seeing attempts to break out of the recent range-bound movement, which could trigger a short-covering rally today. On the upside, Nifty is eyeing 23,500, which now serves as the immediate resistance level for any recovery. We should monitor how price action develops to determine if pullbacks offer viable buying opportunities.
For now, persistent bearish sentiment continues to stall every recovery attempt. While Nifty struggles to break decisively below 23,200, Open Interest data indicates that 23,300 remains the Max Pain point. Given the prevailing range-bound conditions, it is best to keep trading participation light.
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 guarantees 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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