Intraday Trade Call: 4 Stock Picks By VLA Ambala On 30th Jan, Tuesday

The Nifty experienced a substantial jump of 1.80% during the last intraday trading session on Monday, with the conglomerate giant Reliance playing a key role behind the rally by soaring nearly 7% following its Q3 earnings report. The price confirmed the support range to be within the 21130 to 21250 levels, which would align closely with the 50-day Exponential Moving Average (EMA) at the daily time frame. This potential alignment could serve as a trailing range for investors with a mid-term view.

In the session, the stock market also experienced a breach above the key levels of 21470 to 21520, leading the Nifty to end the day at 21737. With just two trading sessions remaining this month, there is a significant chance of the market recording a fresh all-time high. However, the vital factor behind such a possibility would be the market's ability to end the day above the projected high for today. Such momentum could set a positive tone for the stock market and prompt a potential uptrend in the near term.

Notably, the key sectors that saw the most jump were - Infrastructure, Energy, and PSU Banks. It goes without saying that in this budget week, the primary focus will be on sectors such as Energy, Infras, Logistics, Auto, and Advanced Technologies. This has become further clear with the sectors already experiencing significant movement days ahead of the budget announcement on February 1.

Besides these developments, this week, the US Federal Reserve is set to announce its decisions with regard to interest rates. The announcement is likely to come a day before the budget, further adding momentum in the market. Notably, it is expected that this January meeting could be a precursor to the potential rate cuts and reduction in the targeted federal funds in March as part of collective efforts leading to a soft landing.

Stock Market Movement Rewind

It should be noted that HDFC Bank alone makes up 40% of the weightage in the Bank Nifty Index, and it managed to surge around 2% ever since LIC received the green signal from the RBI to boost its stake to 9.99% on the 24th of January. Its impact was observed on the stock market even yesterday. On the other hand, the Nifty formed a bullish candlestick pattern - Bullish Belt Hold at the daily time frame. This signals a reversal of the ongoing downturn in the near term. On that note, it should be remembered that the high of yesterday's market would be crucial as it could prompt more buying if the day ends above the current level.

While after Monday's closing the market has shown a renewed potential to mark an all-time high this month with it previously touching the 22124 mark, I advise traders to remain aligned with the major trend before making any sudden activity, said VLA Ambala (SEBI Regd. Research Analyst).

The Market Mood Index pointing at the 35.64 level signals a sense of fear in the market. In such a situation it is best to reconsider trading. However, those who believe in the buy-the-fear approach and are comfortable with taking a few risks could plan their trading activities accordingly. With the India VIX at the level of nearly 15.67, dips are actively being bought in the market. In this regard, my advice would be to invest money in parts. Those with a long-term investment approach can also consider tapping into the potential by preplanning their investments, said VLA Ambala (SEBI Regd. Research Analyst).

Key Levels to Watch

The Nifty is anticipated to be in the support range of 21650 and 21600. On the other hand, the major resistance point for the intraday is expected to be around the 21900/22000/22040 mark. When it comes to the Bank Nifty, the intraday support levels could be in the range of 45200 and 45000, with the resistance range lying between the 45850 and 46200 levels.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends four stocks to buy on - January 30, 2024, namely - INDIAMART, HINDALCO, TCIEXP, and ONGC.

IndiaMART InterMESH

BUY - Rs. 2530, TARGET - Rs. 2800/2850/2900/3000/3050/3100/3200/3300//3400/3500, and STOP LOSS (SL) - Rs. 2400

Hindalco Industries

BUY - Rs. 570, TARGET - Rs. 610/630/650/670/680/700, and STOP LOSS (SL) - Rs. 525

TCI Express

BUY - Rs. 1340, TARGET - Rs. 1360/1400/1430/1470/1500/1550/1600/1650/1700, and STOP LOSS (SL) - Rs. 1300

ONGC

BUY - Rs. 250 - Rs. 252, TARGET - Rs. 260/263/265/270/275/280, and STOP LOSS (SL) - Rs. 240

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.