Stocks To Buy Today, Jan 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday

Nifty saw a severe weekly drop, wiping all of the gains from the preceding six weeks and recording five straight negative ends. The previous session saw the Nifty drop 193.55 points to settle at 25,683.30, the worst single-week dip in six weeks and a glaring lack of positive momentum.

The Nifty Bank index saw a tumultuous and corrective week, losing a significant amount of its gains from the previous week and recording four straight sessions of negative closing. The Nifty Bank saw its worst weekly drop in recent weeks, falling 434.95 points to settle at 59,251.55.

With the India VIX closing at 10.92, up 3.07%, volatility is still high, indicating that bigger intraday swings will continue.

Nifty Outlook Today

"Nifty's broader trend has turned distinctly cautious. The breakdown from its demand zone, coupled with a bearish engulfing formation at record highs and a slip below key short- and medium-term moving averages, has rendered the overall structure fragile. The swift erosion of the previous four weeks' gains has clearly dented market confidence," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"The formation of lower highs and the rapid absorption of intraday recoveries highlight persistent selling pressure at elevated levels. With the index closing below crucial psychological support, the downside risks remain pronounced. The 25,600 zone now assumes critical importance, supported by the confluence of the 20-week EMA and the 100-day EMA. Failure to defend this area could open the door to a deeper correction toward 25,350," he added.

"On the upside, any meaningful revival in bullish positioning is likely only above the 26,100 mark. Until such confirmation emerges, a sell-on-rallies approach is expected to remain the dominant strategy in the near term," Dhupesh Dhameja further added.

Bank Nifty Outlook Today

"From a technical perspective, the index has consistently closed below the previous day's high over the past five sessions, signalling sustained distribution. The failed breakout and a close below the crucial neckline zone of 59,700-60,000 have further heightened downside risks and increased the likelihood of continued selling pressure," Dhupesh Dhameja stated.

"Importantly, the bearish Dark Cloud Cover formation on the weekly chart at all-time highs places the index near a critical inflection point around the 59,000 level. Any follow-through selling from these levels could decisively tilt the medium-term trend towards bearish territory. Adding to the negative bias, the index is trading below both its 20-day and 50-Day exponential moving averages, which are now expected to act as immediate overhead resistances-reinforcing the view that rallies are being sold into," he added.

"The 59,700-60,000 zone, which earlier acted as a strong demand region, has now transformed into a stiff resistance band. As long as the index remains below this range, the risk of further downside persists, with sellers retaining control," he said.

"Momentum indicators also reflect weakening strength, with the Relative Strength Index (RSI) slipping below the 50 mark, indicating fading bullish momentum. While 59,000 stands out as immediate support, a decisive break below this level could accelerate the corrective move. A sustainable recovery would require a clear reclaim of the 59,700-60,000 zone to restore bullish confidence," Dhupesh Dhameja further commented.

Stocks To Buy Today

Technical analyst Riyank Arora of Mehta Equities Ltd. advised purchasing two stocks on Monday, January 12, after the Nifty created a bearish engulfing pattern on the weekly period. The index lost 2.45% throughout the previous week, indicating a significant change in the near-term gain.

IPCA Labs

Buy | CMP: Rs 1,575.00 | SL: Rs 1,525 | Target: Rs 1,630 / Rs 1,680

IPCA Labs has resumed its upward momentum after a brief consolidation phase. The stock is holding above its breakout zone, reflecting accumulation on dips. Momentum indicators are improving, supporting further upside. A sustained move above ₹1,585 can lead to targets of ₹1,630 and ₹1,680. Maintain SL at ₹1,525.

ABB India

Buy | CMP: Rs 5,093.00 | SL: Rs 4,920 | Target: Rs 5,250 / Rs 5,400

ABB India continues to trade in a strong bullish structure with prices sustaining above key support levels. The stock is witnessing consistent buying interest, and RSI remains firmly bullish. A breakout above ₹5,120 can open the path toward ₹5,250 and ₹5,400. Place a stop-loss at ₹4,920.

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