Stocks To Buy Today, Jan 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday

Bears dominated the tone of the Wednesday session, which was characterized by higher volatility. The Nifty index made an attempt to recover from lower levels during the day, but it was unable to do so and ended the day down by 66.70 points at 25,665.60. The prospect of a broadening and turbulent trading range in the near future is supported by this price movement.

Both buyers and sellers actively participated in the Wednesday session, which was characterized by high volatility. The Bank Nifty index ended nearly flat, rising only 1.35 points to conclude at 59,580.15 after mostly trading in a narrow range. The absence of significant buying confidence implies that the index may continue to be in an extensive consolidation period in the foreseeable future, despite a quick intraday comeback from lower levels.

Nifty Outlook Today

"Nifty continues to trade with a lack of clear direction, with intraday recoveries consistently encountering selling pressure. Despite brief rebounds from lower levels, the absence of strong follow-through buying keeps the broader outlook guarded. With the index still positioned below key short- and medium-term moving averages, the overall structure remains cautious. The trading range is now well-defined, with 26,000 acting as immediate resistance and 25,500 as a strong support zone. A breakout from either end of this range is likely to set the tone for the next directional move," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"The 25,500 level assumes critical importance due to the confluence of technical and derivatives-based support; a failure to hold this zone could pave the way for a deeper correction toward 25,350. On the upside, any meaningful revival in bullish positioning is likely only if the index sustains above the 26,100 mark. Until such confirmation emerges, a range-trading strategy is expected to dominate in the near term, with traders advised to remain selective, disciplined, and cautious," he added.

Bank Nifty Outlook Today

"Nifty Bank is yet to decisively overcome the recent phase of selling pressure. While the index has staged quick rebounds from lower levels, the lack of sustained follow-through buying keeps the broader outlook guarded. Muted participation from heavyweight private banking stocks, offset partially by relative strength in select PSU banks, has contributed to the choppy and consolidative price action. The trading range is now well defined, with 60,000 acting as immediate resistance and the 59,000-58,800 zone forming a strong support base," commented Dhupesh Dhameja.

"A breakout from either end of this band is likely to set the tone for the next directional move. The 59,000 region remains particularly crucial due to the convergence of technical and derivatives-based support; failure to hold this zone could open the door to a deeper corrective phase. On the upside, any meaningful revival in bullish momentum is likely only if the index sustains firmly above the 60,000 mark. Until such confirmation emerges, a range-trading strategy is expected to dominate in the near term, with traders advised to remain selective and cautious," the analyst further added.

Stocks To Buy Today

After the stock market was closed on Thursday, January 15, due to the Maharashtra Municipal Corporation Election, technical analyst Riyank Arora of Mehta Equities Ltd. suggested buying two stocks on Friday, January 16.

CDSL

Buy | CMP: Rs 1,412.70 | SL: Rs 1,360 | Target: Rs 1,470 / Rs 1,520

CDSL continues to trade in a strong medium-term uptrend despite minor profit booking. The stock is holding above its key moving averages, keeping the broader trend intact. Momentum indicators remain supportive. A sustained move above ₹1,430 can open upside targets of ₹1,470 and ₹1,520. Place SL at ₹1,360.

Praj Industries

Buy | CMP: Rs 308.35 | SL: Rs 295 | Target: Rs 325 / Rs 340

Praj Industries is showing signs of renewed strength after consolidating near its support zone. The stock structure remains positive with improving momentum indicators. A breakout above ₹312 can lead to the next leg of the rally toward ₹325 and ₹340. Maintain SL at ₹295.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.