Stocks To Buy: 3 Technical Stock Picks By VLA Ambala For 8th Jan, Monday

The current market trend is predominantly bullish, with 21,500 serving as a crucial support level for the month. Despite reaching new all-time highs this year, there was noticeable selling pressure, followed by a recovery in the last trading session.

Anticipate a broad trading range on January 8, 2024, with key support levels for Nifty at 21,660 and 21,540, and major resistance at 21,760 and 21,870, as per insights from V.L.A. Ambala, a SEBI Registered Research Analyst and Co-Founder of Stock Market Today.

To capitalize on this market movement, wise investment in quality and high-potential stocks is recommended. VLA Ambala assures that as long as bulls secure the weekly support range of 21,500 to 21,430, there's no cause for concern.

The banking sector has outperformed the benchmark index, hinting at a potential breakout for further upward momentum in the upcoming week. In today's trading, significant support levels for Nifty Bank are predicted at 48080 and 47,800, with notable resistance at 48,420 and 48,650. V.L.A. Ambala underscores the ongoing potential for banking stocks to rise after a pullback, highlighting stocks like Bandhan Bank, IDFC Bank, Kotak Bank, PNB, and Yes Bank.

Factors To Drive The Indian Market This Week

According to Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, the Indian stock market ended the week on a flat note with limited gains. The Nifty settled above the 21700 level. The broader market sustained its outperformance for the second straight week. Sensex rose 179 points to 72,026 and Nifty 52 points to 21,711. Midcap index gained 87 pts to 47,396 while Nifty Bank fell 37 pts to 48,159. Nifty realty recently breached 14-year highs, while financials continue to drag the market.

"Mother Market (US Market) started with a 5-day losing streak, the longest in 15 months. Global markets are a little bit nervous because of valuations on technology stocks, US economic data, uncertainty over the FED's next move, and the Red Sea conflict. It is also focusing on US bond yields and the dollar index. Additionally, data like US CPI and unemployment claims will be announced on January 11, 2024. These factors will be closely monitored, as they have the potential to influence market sentiment," stated Pravesh Gour.

"On the domestic front, all eyes will be on the beginning of corporate performance for the third quarter of the current fiscal year (Q3 FY24), spanning from November to December. The anticipation is particularly high for India's IT giants. TCS and Infosys released their Q3 results on January 11th, followed by HCL Tech and Wipro on the 12th. Market participants will be keeping an eye on the movement of the rupee against the dollar and crude oil prices. Investments by foreign institutional investors (FIIs) and domestic institutional investors (DIIs) will also be monitored," Pravesh Gour added.

Commenting on the outlook of Nifty, Pravesh Gour said "The Nifty is consolidating in the 21500-21800 range with intraday volatility. If it slips below 21500, then the 20-DMA of 21400 will be immediate support; only below this can we expect any meaningful profit booking. If it manages to sustain above the 21800 mark, then 22000 and 22200 will be the next target levels."

On the outlook of Bank Nifty, he stated "Banknifty is respecting its 20-DMA around the 47800 mark. On the upside, 48500-48800 is acting as an immediate supply zone; above this, we can expect a move towards the 49500-50000 level. If it slips below 20-DMA, then 47000 will be the key support level."

According to him, FII's long exposure in index futures remains at 67%, accompanied by a put-call ratio of 1.08, both indicating a neutral to positive market sentiment.

Stocks To Buy On Monday

With full technical analysis including entry price, stop-loss, and target price, VLA Ambala, a SEBI Registered Research Analyst, provides intraday and swing trading advice for the three stocks listed below.

HDFC Bank

Consider a dip buying opportunity in the range of 1620/1660 with a target between 1680 and 1850, setting a stop loss at 1580.

Deepak Chemtex

Buy above the 115 range with an anticipated target between 125 and 180 maintaining a stop loss at 96.

Zee Entertainment Enterprises

Aim to buy in the 250 to 270 range with a target spanning 290 to 320, and set a stop loss at 240.

V.L.A. Ambala suggested these recommendations are derived from 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.