Stocks To Buy Today: Intraday BUY/SELL Calls By Sumeet Bagadia On Monday, 20th Jan

While Bank Nifty began with a gap down, saw selling pressure, and ended the day on a negative note at 48,541, the benchmark index, Nifty, opened adversely, saw selling pressure, and ultimately ended the day on a negative note at 23,203 during the last trading sessions. Increased market volatility was reflected in the India VIX volatility index, which increased by 1.82% to 15.75. The India VIX, which measures market volatility, increased by 1.83% to 15.74, indicating a minor spike in market apprehension. Historically, high volatility, frequently associated by bearish inclinations, is indicated by VIX readings above 15.

Nifty Outlook Today

"Technically, Nifty formed a hammer candle on the daily chart, suggesting buying interest at lower levels, while a doji on the weekly chart indicates uncertainty. Resistance is seen at 23,300-23,400, with support at 23,050. However, the index sustained below its 250-Days Simple Moving Average (250-DSMA) hurdle, which is around 23,560 levels. As long as index stays below 23,560, sell on bounce strategy should be adopted," commented Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).

Bank Nifty Outlook

"Technically speaking, Bank Nifty on a daily scale has formed a big red candle, indicating weakness. On the downside, 47,900 levels will provide immediate support for the index. However, the index maintained below its 250-Days Simple Moving Average (250-DSMA) hurdle, which is around 49,910 levels. Traders are advised to adopt a sell-on-bounce strategy unless Bank Nifty holds above 49,910," commented Hrishikesh Yedve.

Stocks To Buy Today

Choice Broking executive director Sumeet Bagadia recommended buying two stocks on Monday, January 20, following the Nifty forming a Doji candlestick pattern that highlighted market hesitation appeared on the weekly chart.

Wonder Electricals

Buy WEL in cash @ 180.45 SL 174 TGT 195

WEL showcases a strong bullish momentum, evident from a substantial upward movement and a significant closing around ₹180.45. The stock has been experiencing robust buying interest, and a consolidation breakout with strong volume, signalling bullish momentum and potential upside continuation.

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 WEL 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 WEL 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 WEL in cash at CMP of 180.45 for the target of 195 with a stop loss of 174.

Godrej Consumer Products

Buy GODREJCP in Cash @ 1187.75 SL @ 1146 TGT @ 1271

GODREJCP Limited is currently trading at ₹1187.75 and is poised for a breakout from a cup and handle chart pattern on the daily chart. This potential breakout is supported by a sustained increase in trading volumes, further strengthening the bullish outlook for the stock. A decisive move above the key resistance level of ₹1200 could trigger significant upward momentum, with a target of ₹1271.

The Relative Strength Index (RSI) stands at 60.85 and is trending upward, indicating strong buying momentum. Additionally, the stock is trading above critical moving averages, including the 20-day EMA and 50-day EMA, while approaching the 200-day EMA. A close above the 200-day EMA would further reinforce the bullish trend.

Considering the favorable technical setup and positive signals from indicators such as RSI and moving averages, GODREJCP offers a strong buying opportunity. Entering at the current market price of ₹1187.75, with a stop loss at ₹1146 and a target of ₹1271, presents a compelling strategy to capitalize on its bullish momentum.

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.