Raja Venkatraman recommends three stocks for 6 October

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Stock market recap: Benchmark equity indices Sensex and Nifty ended higher on Monday, rebounding from a spell of heavy selling as easing oil-supply concerns and positive global cues lifted investor sentiment.
Softer-than-expected US jobs data also eased fears of further monetary tightening by the US Federal Reserve, supporting gains across global markets.
The Sensex rose 472.77 points, or 0.66%, to settle at 72,382.47, while the broader Nifty advanced 133.80 points, or 0.60%, to close at 22,555.75.
On the Sensex, ITC, Eternal, Bharti Airtel, Bajaj Finance, Adani Ports, ICICI Bank, Reliance Industries and Larsen & Toubro were among the major gainers.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman
CYIENT [current market price - ₹1140.20 - Buy above ₹1,142, stop loss ₹1,088, target price ₹1,265 (Multiday)]
- Why it’s recommended: Cyient is a global engineering and technology solutions company founded in 1991 and headquartered in Hyderabad, India. Since June this year there has been a strong surge marked by profit booking that has seen the prices taking supports at the Tenkan Sen and Kijun Sen. The resumption post the support has been encouraging. A strong thrust always attract some buying interest. With the Average Directional Index after a pullback is seen crossing important thresholds, it can lead to some strong upward move in the coming weeks. Go long.
- Key metrics:
  - P/E Ratio : 66.49,
  - 52-week high: ₹1226.25,
  - Volume: 1.62M
- Technical analysis: Support at ₹1000, resistance at ₹1300.
- Risk factors: Client concentration & contracts and low operating margins.
- Buy : above ₹1140.
- Stop loss: ₹1088.
- Target price: ₹1265 (2 Months)
REDINGTON [current market price ₹412.75 - Buy above ₹415, stop loss ₹394, target price ₹460 (Multiday)]
- Why it’s recommended: Redington Ltd is a major global technology distributor and supply chain solutions provider headquartered in Chennai. Since April, every dip in this stock has seen some demand coming in helping revive prices. This counter has been in a steady uptrend. The last few months the stock has shown some strong push to the upside and every dip in the prices have been brief to resume its upward journey. Despite volatile market conditions and profit booking, the stock has managed to form higher lows and the strong action with volumes seen this week highlights steady buying. With the Relative Strength Index (RSI) not giving up the 60 levels, we can expect the upward drive to continue.
- Key metrics:
  - P/E Ratio : 23.59,
  - 52-week high: ₹419.55,
  - Volume: 10.14M.
- Technical analysis: Support at ₹380, resistance at ₹470.
- Risk factors: Razor-thin operating margins, heavy vendor concentration and intensive working capital demands.
- Buy : above ₹415
- Stop loss: ₹394
- Target price: ₹460 (2 Months)
GRAPHITE [current market price ₹816.40 - Buy above ₹818, stop loss ₹780, target price ₹898 (Multiday)]
- Why it’s recommended: GRAPHITE is India's pioneer and largest manufacturer of graphite electrodes, serving global steel and industrial sectors. A sharp trend in this counter showed more promise as the prices remained firm despite turbulent market scenario. The support offered by Tenkan Sen and Kijun Sen that has created an opportunity for re-entry. The steady move seen in RSI from the neutral region around 50 zone holding good indicates that we can expect the upward drive to continue.
- Key metrics:
  - P/E Ratio : 57.90,
  - 52-week high: ₹874,
  - Volume: 1.58M.
- Technical analysis: Support at ₹735, resistance at ₹975.
- Risk factors: Key operational and market risks tied to cyclical steel demand, raw material volatility, and global overcapacity.
- Buy : above ₹818
- Stop loss: ₹780
- Target price: ₹898 (2 Months)
How the stock market performed on 5 October
Indian equities staged a notable rebound on Monday, with FMCG, energy and banking stocks leading the recovery after weeks of persistent declines.
The Sensex closed at 72,382.47, up 472.77 points, or 0.66%, while the Nifty 50 gained 133.80 points, or 0.60%, to settle at 22,555.75. All broad-market indices ended higher, with FMCG emerging as the top sectoral gainer, rising 1.67%, followed by telecom, consumer durables and financial services.
Healthcare stocks lagged. ITC, Bajaj Finance, ICICI Bank, Reliance, Bharti Airtel and TCS were among the key gainers, while HCL Tech, Infosys, Sun Pharma and Asian Paints declined.
Analysts attributed the rebound to easing crude prices near $102 a barrel and softer-than-expected US jobs data, which reduced fears of aggressive Federal Reserve tightening.
Technically, the Nifty reclaimed the 22,500 mark, with resistance now at 22,650–22,800 and support at 22,400–22,350. Analysts said the rebound appears more like a relief rally than a confirmed trend reversal, with persistent foreign institutional selling and elevated US bond yields remaining key overhangs.
Outlook for trading
When the market opened higher on Monday, expectations were that the rally would accelerate. Those expectations, however, quickly faded as prices pulled back, forming higher lows through the day. Trading was largely dull, with intraday moves stilted, leaving the market in a period of churn.
In last week’s article, we wrote, “The moves are too tentative as yet to be meaningful from the point of view of drawing any specific conclusions. So, at best, one can only state that the declines appear to be on hold.” That remains the case at the end of the current week, with the market moving within the same zone while attempting to edge higher. The efforts, however, remain listless.
Weakness in the rupee also continued, with the currency falling to new all-time lows beyond 95 to the dollar. After considerable hesitation, the RBI has been selling dollars to contain the slide. But with most other global currencies also weakening against the dollar, pressure on the rupee remains. As stated earlier, a weak rupee is most often accompanied by bearish or range-bound trends in equities. That is what we are seeing now.
On the daily charts, bearish pressure remains suppressed, and a shift in bias will arise only if the Nifty moves above 23,000. Despite a robust start to the April series, the road ahead remains murky, with little clarity in the market. With stock-specific moves dominating, investors should steer clear of the index until there is a close above 23,000. The RSI is showing signs of weakness at the bottom and will need further confirmation. Long-term trendline support will first need to hold for a revival.
With the market continuing to focus on incoming US data, some knee-jerk reactions are likely. This environment may persist until quarterly results begin coming in more fully.
The start of the week underscored the tug-of-war between bargain hunters and persistent global headwinds. While frontline indices attempted an early rebound, sustained foreign investor selling and weakness across key sectors capped the upside. Sellers continue to dominate the broader trend, leaving any recovery fragile. Selective buying therefore remains prudent, with traders better off focusing on stock-specific opportunities than taking aggressive index-level positions.
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.

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