Raja Venkatraman's Stock Picks and Market Analysis for October 1

Raja Venkatraman, co-founder of NeoTrader and a registered SEBI research analyst, has shared his stock recommendations for October 1, along with his technical assessment of recent market movements. His insights come after a period of consecutive declines in the Indian benchmark indices, the Sensex and Nifty, which have faced pressure from sectors such as metals and pharmaceuticals amid rising crude oil prices and global bond yields.

On September 30, the 30-share BSE Sensex ended 48.78 points lower at 72,480.29, slipping by 0.07%. The broader Nifty 50 index fell 95.75 points, or 0.42%, closing at 22,620.45. Notable decliners among Sensex constituents included Eternal, Sun Pharma, Titan, Adani Ports, Tata Steel, and HDFC Bank. Meanwhile, financial stocks such as Kotak Mahindra Bank, ICICI Bank, InterGlobe Aviation, and Axis Bank recorded gains. Brent crude oil prices edged up by 0.54%, trading at $103.10 per barrel.

Against this backdrop, Venkatraman highlights two stocks with promising technical setups for multi-day trades.

The Leela Palaces Hotels & Resorts Limited (Current Price ₹573.80)

Venkatraman recommends initiating a buy position in The Leela above ₹575, with a stop loss set at ₹547 and a target price of ₹640 over a two-month horizon. He points out that The Leela is India's largest institutionally owned luxury hospitality brand, which has experienced a notable rally since June, interrupted by phases of profit booking. The stock has recently found support at its Tenkan Sen and Kijun Sen levels, which are key indicators in Ichimoku technical analysis. The recent rebound and Average Directional Index readings suggest the potential for a strong upward move in the coming weeks.

Key metrics for The Leela include a price-to-earnings (P/E) ratio of 63.73, a 52-week high at ₹588.35, and a trading volume of 1.25 million shares. Technical support and resistance levels stand at ₹510 and ₹730 respectively. Venkatraman cautions about risks such as negative cash flows, possible disruptions during asset upgrades, and pressures on maintaining service quality amid aggressive cost management.

The Great Eastern Shipping Company Limited (Current Price ₹1,560)

For GE Shipping, Venkatraman suggests entering a buy trade above ₹1,565, with a stop loss at ₹1,493 and a target price of ₹1,710 within two months. As India's largest private sector shipping and oilfield services provider, the company has exhibited resilience since March, with buyers stepping in on price dips. The stock has been forming higher lows, and recent volume patterns indicate steady buying interest despite broader market volatility.

The technical formation displays a rounding pattern near the ₹1,250 zone, supporting an expected continuation of the upward trend. The P/E ratio stands at 7.13, with a 52-week peak of ₹1,798 and average volume around 938,290 shares. Support and resistance levels are identified at ₹1,451 and ₹1,700 respectively. Investors should consider risks including revenue cyclicality, exposure to spot market fluctuations, and the impact of elevated ship prices on lending entities.

Market Performance and Outlook

Indian equity markets extended their losing streak to three sessions by the close on September 30. The Nifty had opened the new October series on a positive note, briefly surpassing 22,800, but late-session selling pressure erased gains. While broader markets showed some resilience, with midcap and smallcap indices posting modest advances, sectoral performance was mixed. Banking, real estate, and media sectors rose between 1 and 2 percent, whereas metals, pharmaceuticals, and consumer durables saw declines exceeding 1 percent.

Top gainers included ICICI Bank, Kotak Mahindra Bank, InterGlobe Aviation, Wipro, and Tech Mahindra. Conversely, stocks such as Max Healthcare, Apollo Hospitals, SBI Life Insurance, Eternal, and ONGC lagged behind. Market breadth remained weak, with over 120 stocks hitting 52-week lows. Despite this, certain counters like Arisinfra Solutions and Power Mech Projects rallied on fresh orders, while others declined despite corporate developments.

The Indian rupee strengthened modestly by 16 paise, closing at ₹95.82 against the US dollar. The market environment remains volatile, with selective sectoral support unable to offset persistent selling pressure on benchmark indices.

Venkatraman notes that although bulls tried to regain ground, the market has struggled to sustain upward momentum beyond key resistance levels near 23,100. The support around 22,500 remains critical, yet ongoing selling and the absence of strong positive catalysts suggest a cautious approach. The Nifty's inability to decisively break past the Ichimoku cloud resistance, particularly near 23,200, indicates that further gains will require fresh triggers.

Open interest data reflects a divided market, with buying interest emerging at lower price points. The 'Max Pain' point in options trading has shifted to 22,700, making the market’s ability to hold this level in the near term an important factor in determining direction.

About Raja Venkatraman

Raja Venkatraman is the co-founder of NeoTrader, where he leads the training division. With over two decades of experience under the mentorship of Dr. C K Narayan, he actively trades across multiple asset classes and shares market insights through various media platforms including YouTube and reputed news outlets. His SEBI registration number is INH000016223.

Note: Investment decisions involve market risks. Investors should consult certified financial experts and review all related documents before making any commitments. This article presents the analyst's views and does not represent the publication’s official stance.