Intraday Trade Call: 6 Stock Picks By VLA Ambala On Thursday, 25th Jan

Benchmark Index has bounced back from its key support that we had discussed yesterday.

Despite a gap of almost 0.50% gap opening, the stock market closed with around 0.50% gains. The day also marked the expiry of the January 2024 series. However, it is vital to keep the recent trading sessions range in mind as they would be crucial for the traders.

The stock market closing below 21130 will trigger Bearish sentiments, but on the other hand, 21520 would be a crucial resistance level for the rest of the days in January. Notably, all sectors private banks, and realty sectors closed on a positive mark, with Media and Metal leading the charts.

Stock Market Outlook

The Market Mood Index suggested a sentiment of doubts and fear in the market as the Nifty breached its key support range and started trading at nearly 21500 to 21430 level. As I have discussed many times before, this range is the make-or-break point. I would remind traders that following this range, the wide trading range between 2.5% and 4% would only be possible after the next two weeks, VLA Ambala (SEBI Regd. Research Analyst) said.

As we approach the Union budget announcement, the sentiment of fear and volatility can be noticed in the market. This becomes more evident, with the Market Mood Index pointing around 37. Since any value below 50 on the MMI indicates bearish sentiments, it is signalling rising fear in the stock market as traders grow more pessimistic or cautious.

However, investors who follow the "Buy the Fear and Sell the Greed" investing approach could benefit soon. I advise them to wait for some days as the current market momentum paves the way for several dip-buying opportunities across stocks. My advice for investors with a long-term view would be - to focus on investing in parts, recommended VLA Ambala.

Indeed, some selective global markets are under burgeoning pressure mainly because of volatile geopolitical concerns. Additionally, oil slips of nearly 0.20% amid the increased economic struggle between the largest oil importer in the Middle East and one of the leading suppliers, Russia, continue to add to the challenges.
However, the US and European markets managed to close on a positive note, unlike the Asian market which was seen struggling with pressure.

While Crude Oil and Gold traded on the positive mark, prominent leaders in the Indian banking sectors, such as HDFC Bank ADR and Axis Bank ADR, recorded -3.80% and -2.73%, respectively. That is why I advise traders to closely monitor the situation and be cautious when selecting stocks in the current dip.

The Movement Strength Indicator RSI is at 50 now for Nifty and is very likely to reach 25 soon, in case of a breach in the 21130 support range. My advice would be to be wise when picking stocks for short-term trading. The key is to hold the quality stock with close trailing. However, investors should be prepared to encash the dip in good stocks as the current market momentum will soon offer them several good stock picks.

Nifty has formed a very bullish candlestick pattern "Bullish Marubozu" on the daily timeframe. However, in the last two trading sessions, Nifty has formed the "Piercing line candlestick pattern" on the daily timeframe, which indicates a bearish sentiment. Hence 21130 is the crucial range for price, and buyers must try to protect their resources to avoid any further selling pressure in the stock market.

Notably, the market has bounced a little and helped recover almost 1.0% in Intraday over recent sell-offs. Then again, the Monthly Expiry at the Index Bank Nifty and Nifty could be somewhat volatile, paving the way for a shuffle in positions.

Key Levels to Watch in on 25th Jan 2024

The Nifty is currently in the support range of 21300 and 21230. Notably, the Major resistance points for the intraday would be around 21510 and 21650. In the case of Bank Nifty, the intraday support levels are expected to be between 44450 and 44220, with resistance in the 45300 and 45650 range.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended six stocks to buy on - January 25, 2024. The recommended stocks for Intraday and Swing Trading are NELCAST, AURUM, PATANJALI, STARCEMENT, ROHLTD, and RADICO. There's ample room for growth in these six stocks.

Nelcast

Buy - Rs. 165 and Rs. 167, Projected Targets - Rs. 175 to Rs. 200, and Stop Loss - Rs. 150

Aurum Proptech

Buy - Rs. 160, Projected Targets - Rs. 172 to Rs. 190, and Stop Loss - Rs. 152

Patanjali Foods

Buy - Rs. 1600, Projected Targets - Rs. 1700 to Rs. 1950, and Stop Loss - Rs. 1500

Star Cement

Buy - Rs. 180, Projected Targets - Rs. 195 to Rs. 240, and Stop Loss - Rs. 160

Royal Orchid Hotels

Buy - Rs. 340, Projected Targets - Rs. 360 to Rs. 450, and Stop Loss - Rs. 315

Radico Khaitan

Buy - Rs. 1670, Projected Targets - Rs. 1800 to Rs. 1930, and Stop Loss - Rs. 1540

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.