Best stocks to buy today: Raja Venkatraman recommends three stocks for 2 April

Global cues continue to dictate the trends in the Indian stock market as we begin the new financial year. While trends remain uncertain, certain stocks are able to handle this scenario efficiently. For today, we have chosen stocks from the hospitality, pharma and finance sectors.

Here are the three best stocks to buy today as recommended by Raja Venkatraman of NeoTrader for Wednesday, 2 April.

• Chalet Hotels: Buy above ₹850 , stop ₹825 target ₹915-940

• Medanta: Buy above ₹1,235, stop ₹1,210 target ₹1,315-1,345

• Poonawalla Fincorp: Buy at current market price and on dips to ₹340, stop ₹335, target ₹360-370

Also Read: Riders on the storm: Newbie investors get a dose of reality

Stock market recap- 1 April

On Monday, the Nifty opened with a gap down that sustained through the day. It couldn't hold onto higher levels and ended the day lower. The ability of Nifty to hold on to higher levels has been declining and weakened further. On 1 April, benchmark indices Nifty and Sensex continued their downward trend, as investor sentiment remained cautious following the tariff deadline set by former US President Donald Trump.

The sectors most vulnerable to trade-related disruptions, including Nifty IT and Pharma, saw significant declines, with financial stocks also joining the sell-off. Additionally, market anxiety intensified as India VIX, a critical measure of volatility, spiked by 9%.

Outlook for trading

Bank Nifty and Nifty have started the April series on a tepid note. The bearish tones in the index demonstrate that every opportunity at higher levels generates a supply. We continue to experience a volatile state as markets contemplate the future course of action.

While markets continue to revive from lower levels, there are clear signs of indices tiring out at higher levels. High beta stocks continue to attract buying interest at lower levels but the retail participation is wearing off as the trends remain muted.

Mid and small caps continue to face a wave of profit booking coupled with panic selling as markets fail to move higher. On observation of the daily charts, we notice that the Nifty spot has tested the swing low of 23,100 once again, a key level to watch out for past month.

The weekly charts clearly indicate a sustained selling pressure that has been dragging the market lower. The moving average bands have halted the rally, similar to March 2025, and the fall has once again resumed in the last few days. This situation is definitely something to take note of.

The repeated selling pressure has been triggered by weak global cues. As we are heading into a curtailed expiry week, we could look at the selling pressure receding towards the end of this week. While the situation is not showing a sign of reversal the stabilization of global cues should be tracked before we begin shifting our bias. The lower timeframe shall give us better clarity on the situation at hand, and hence, we decided to see what is the action plan on the Nifty based on the daily chart.

The option data clearly shows that the higher levels are pressured. The sustained selling at higher levels continues to show that the max pain in Bank Nifty is at 51300 and Nifty at 23300. The inability to close above these levels is slowly and steadily inducing more bearishness in the market. The markets are trading with a tilt towards bearish bias.

Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:

• Chalet Hotels: Buy above ₹850, stop ₹825 target ₹915-940

After a phase of consolidation, the trends show the inability of the stock to move higher with prices facing headwinds again. The last Q3 numbers were not encouraging. However, after the sharp selloff in the last three days, amid the weak market sentiment, is attracting bullishness. With a long-body candle highlighting a strong follow-through, we may see further bullishness. The average directional index (ADX) above 25 indicate the trends could continue higher.

• Medanta: Buy above ₹1,235, stop ₹1,210 target ₹1,315-1,345

Overall, the momentum remains hesitant as the trends continue to show that the pullbacks are producing a steady demand from lower levels, indicating that the bullishness in this counter is very much intact. As the prices are now rebounding despite some pressure seen across the market, the trends could revive. Prices have managed to revive on Friday and Thursday, and the relative strength index (RSI) is reviving from a neutral zone that can help a rebound from the lower levels. Look to initiate long.

• Poonawalla Fincorp: Buy above ₹351 and on dips to ₹340, stop ₹335, target ₹360-370

The strong move seen in financial counters in the last few days highlights the underlying bullish momentum. With the steady bias building in the last few sessions this counter has been able to demonstrate some strong footing. Despite some selling emerging yesterday, the counter rebounded well, indicating that the trends could show some spirited rise. The hold of important level around ₹335 indicates that the downward momentum has been prevented. Looking at the increased participation in the upside, one can consider going long.

Also Read: The Great Escape: As investors abandon US for greener pastures, Indian stocks stand to benefit

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

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.