Market expert Raja Venkatraman identifies SUMICHEM, HAVELLS, and HONASA as high-potential trades for August 17. Discover the technical triggers and target prices for these picks.
- SUMICHEM, HAVELLS, and HONASA are the recommended stocks for short-term gains.
- Nifty 50 shows strong support between 24,300 and 24,400.
- Market sentiment remains buoyant despite recent consolidation and profit-booking.
The Indian equity markets have recently entered a phase of consolidation. Between August 10 and 14, both the Nifty 50 and Sensex experienced slight dips, reflecting a cautious approach by investors following a period of significant gains. In this volatile environment, Raja Venkatraman, co-founder of NeoTrader, has provided a strategic roadmap for traders focusing on three specific stocks.
Deep Dive into Recommended Stocks
Sumitomo Chemical India (SUMICHEM) is highlighted due to its strong Q1 performance and a broader revival in the agrochemical sector. Technically, the stock is finding support at the Tenkan Sen and Kijun Sen lines. With an RSI firmly above 60, the stock exhibits a strong upward bias, especially after breaking through the value area resistance of 490.
For Havells India, the recommendation stems from a clear sectoral turnaround. After nearly a year of decline, the stock is forming a 'rounding pattern breakout' with steady volumes. This suggests that the market has already discounted the muted results of previous quarters, paving the way for a recovery in the FMEG space.
Honasa Consumer, a digital-first beauty and personal care brand, is the third pick. Despite inherent volatility, the stock is climbing steadily. A gap-up move and strong Q1 results have revitalized price action. A break above 480 is seen as a key trigger for a long position, supported by unrelenting momentum in the RSI.
BozokMedia analysis shows that the current market is shifting from a broad-based rally to a selective one. The formation of a weekly Doji candle on the Nifty indicates a tug-of-war between bulls and bears. In such scenarios, technical breakouts in individual stocks, rather than index-level moves, offer the best risk-reward opportunities for active traders.
"Intraday action may remain limited, but every dip is being bought, indicating that the underlying bullish sentiment remains intact."
| Stock | Buy Above | Stop Loss | Target (2 Months) |
|---|---|---|---|
| SUMICHEM | ₹567 | ₹535 | ₹625 |
| HAVELLS | ₹1300 | ₹1240 | ₹1425 |
| HONASA | ₹505 | ₹480 | ₹570 |
1. What are the critical levels for Nifty 50?
The support zone is identified at 24,300–24,400, while the critical resistance lies between 24,700–24,800.
2. What are the primary risks associated with these picks?
Risks include raw material price volatility for Havells and Sumichem, and distribution scaling bottlenecks for Honasa Consumer.
