Intraday Trade Call: 3 Stock Picks By VLA Ambala of SMT For Monday, 29th Jan

The Indian stock market witnessed a ray of hope again as the Nifty tried to find support at its 50-day Exponential Moving Average (EMA), which is very close to the support range of 21250 to 21130. However, all major indices, including Nifty, Sensex, and Mid- Caps closed on a negative note. Notably, selling pressure was fueled primarily because of HDFC Bank, which fell another 1.41% in a row. On the other hand, the Banking Index traded in a wide range of 650 and experienced a gain of nearly 0.50% in intraday.

Stock Market Outlook

The Nifty has delivered nearly 9% gains in just three months, which is indeed an extraordinary benchmark index. As a result, individuals have been booking substantial profits to secure their returns. Then again, Nifty breached its major support range, and the next support is nearly at 21800, while the current price closed at 21373. Ideally, it should get support around the 50 EMA, or it could trigger more selling. My advice in this situation would be to hold on to quality stocks and prepare to tap into the potential of the dip buying opportunities that could soon arise in many stocks. I am confident the current market winds will lead investors to several good stock picks, said VLA Ambala (SEBI Regd. Research Analyst).

Nifty formed a very bullish candlestick pattern, a 'Bullish Pin Bar, at a daily time frame. It could signal potential buying pressure and a possible uptrend in the following days. That said, traders might take note of Thursday's high and low very carefully, as a buying opportunity could be seen above this current below, and alternatively, selling may continue below it.

The Market Mood Index is currently pointing at around 37, which signals a rising fear. Traders could consider riding this wave of fear and buying if it aligns with their trading goals. India VIX is trading at nearly 13.84. So, I suggest traders wait for a few more days as ample dip buying opportunities are waiting to pop up at the right moment. Similarly, long-term investors should reassess their goals and strategies and prepare to invest.

Key Levels to Watch in on 29th Jan 2024

Nifty is in the support range of 21320 and 21210, whereas the major resistance points for the intraday could be between 21440 and 21550. For Bank Nifty, the intraday support level is expected to be between 44800 and 44420, with resistance in the 44500/45800/46000 range.

Stocks To Buy

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended three stocks to buy on - January 29, 2024. The recommended stocks for Intraday and Swing Trading are SAIL, TARSON, and ABFRL, as there's ample room for growth.

Steel Authority of India

BUY - Rs. 119 - Rs.120, TARGET: Rs. 125 to Rs. 180, and STOP LOSS (SL) - Rs. 113

Tarsons Products

BUY - Rs. 515 - Rs. 518, TARGET: Rs. 540 to Rs. 730, and STOP LOSS (SL) - Rs. 475

Aditya Birla Fashion and Retail

BUY - Rs. 235/240, TARGET - Rs. 260 to Rs. 380, and STOP LOSS (SL) - Rs. 210

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.