Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Friday, 10th Jan

The Nifty Bank index continued its downward trend on Thursday, falling 0.67% (-331.55 points) to settle at 49,503.50, while the Nifty index continued its losing streak, down 0.69% (-162.45 points) to settle at 23,526.50. The India VIX, which measures market volatility, increased by 1.33% to 14.65, indicating a small rise in traders' concern. Nonetheless, the market sentiment is still cautiously positive but limited, as the VIX continuously stays below the crucial 15-mark.

Nifty Outlook

"Nifty's current price action suggests a sideways to mildly bearish trend as it continues to struggle with the 23,800-23,900 resistance zone, coinciding with the 10-day and 20-day EMAs. The psychological mark of 24,000 serves as a pivotal level for directional movement. Options data reveals a subtle shift in sentiment, with aggressive call writing and reduced put additions signalling waning confidence in upward momentum. The repeated testing of the 23,500-23,550 support zone renders it fragile. A decisive breakout above 24,000 could spark short-covering, potentially lifting the index toward 24,500. Conversely, a sustained fall below 23,500 would expose the index to further downside risks toward 23,200. Until the index breaches its resistance, the structure remains bearish, and a "sell-on-rise" strategy appears prudent, given the inability of buyers to sustain gains at higher levels," commented Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"Nifty Bank index showcases a sideways to bearish trajectory, as recovery attempts face selling pressure, with the psychological 50,000 mark proving to be a formidable hurdle. Breaking below its critical 50,000-49,700 support zone, which previously served as a springboard, weakens the outlook further. Options data reflects diminishing confidence in sustained upside potential, with aggressive call writing and put unwinding dominating the sentiment. Resistance between 50,200-50,500, aligning with the 200-day EMA, continues to present a stiff challenge for buyers. On the downside, the 49,500-49,300 zone, reinforced by substantial put writing, provides a reliable base. A decisive breakout above 50,500 could ignite short-covering. This could drive the index toward 51,300. However, unless the index firmly surpasses 50,700, a "sell-on-rallies" strategy remains prudent, as upward moves are repeatedly met with selling pressure," commented Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, suggested purchasing two stocks on Friday, January 10, following the RSI indicator's decline below 40, which indicates waning positive momentum for the Nifty.

Goldiam International

Buy GOLDIAM in cash @ 471.15, Stop-loss: 450, Target: 505

GOLDIAM showcases a strong bullish momentum, evident from a notable uptrend from the support levels around 420, in close proximity to its 20 Day Exponential Moving Average (EMA). substantial upward movement and a significant closing around Rs 471.15. The stock has been experiencing robust buying interest, leading to consecutive gains that could potentially lead to further upward movement after the recent surge, offering an optimistic outlook for investors.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in GOLDIAM price action.

The surge in volume associated with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for GOLDIAM Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying GOLDIAM in cash at CMP of 471.15 for the target of 505 with a stop loss of 450.

Pearl Global Industries

Buy PGIL in cash @ 1573.75, Stop-loss @ 1515, Target @ 1680

PGIL is exhibiting strong bullish momentum, currently trading at an all-time high of 1619.2 levels. The chart depicts a healthy uptrend backed by improving sentiment. The stock has maintained a strong upward momentum, as highlighted by the series of higher highs and higher lows. Recently, the price has approached Rs 1573.75, riding the wave of bullish strength. supported by robust trading volumes, reinforcing the strength in the stock.

Additionally, PGIL is trading above key moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, further affirming its bullish stance. The momentum indicator, Relative Strength Index (RSI), is at 80.58 levels.
For traders, keeping an eye on the strong support near 1515 levels is advisable, as a breach of this level could signal a shift in sentiment. Overall, PGIL current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor key support and resistance levels.

Based on the above analysis we recommend buying PGIL and the CMP of 1573.75 with a stop loss of 1515 for the target of 1680.

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.