Trade Call: 2 Stock Picks By Sumeet Bagadia On Friday, 12th January

The Indian benchmark indices saw a flat closing session at the conclusion of the day on Thursday amid a mixed sectoral trend. The Nifty surged 28.50 points, or 0.13 per cent to close at 21,647.20, while the Sensex gained 63.47 points, or 0.09 per cent to settle at 71,721.18. Top Nifty gainers were Hero MotoCorp, Bajaj Auto, Reliance Industries, Axis Bank, and BPCL; losers included L&T, Dr. Reddy's Laboratories, SBI Life Insurance, HUL, and Wipro.

Oil and gas, consumer durables, and auto were the top performers on the sectoral front; media, IT, and FMCG were the top losers. Broader market indices ended with marginal gains as BSE Midcap ended 0.66% higher and small-cap ended 0.80% higher.

Market Outlook

"A rangebound trade comes to an end at 21,647.20 with gains of 28.50 points. Among the sectors, Energy and Auto were the star performers while a correction was seen in the IT index ahead of Q3 numbers of sector giants Infy and TCS.

The interest of market participants was more towards the Broader markets as Mid and Smallcaps outperformed the Frontline Index. In a well-defined range of 21,470-21,800, it appears that the Index is forming a Bullish Flag pattern and one can expect a sharp uptick after the pattern breakout," said Mr. Aditya Gaggar Director of Progressive Shares.

Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy said, "There is indecision in the market as Nifty forms an indecisive spinning top candle on the technical charts. Notably, the support level for Nifty has now shifted from 21,500 to 21,600.

The market has been trading in the short range of 300 points for over two weeks and it is a matter of time before this range is broken. With India VIX falling over the past three days, the occurrence of a breakout is more likely. The impact of the earnings of the two IT majors will be reflected tomorrow on the market. This will serve as a key determinant for the market's future trajectory."

Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities said, "Nifty faced selling pressure within the 21700-21750 range, yet found stability as it held above its 10-day moving average, concluding the session with a positive close. Presently, Nifty's immediate support has shifted to 21600, while 21730 serves as a resistance level on the technical chart. The broader positional support for Nifty remains at 21500."

Bank Nifty Outlook

"The Bank Nifty index witnessed ongoing struggles between bulls and bears, leading to a volatile trading session. A significant hurdle for the index is identified at 48000, marked by substantial call writing. A decisive breakthrough above this level is anticipated to trigger a sharp short-covering rally. On the downside, the lower-end support remains intact at 46900. A close below this support level may intensify selling pressure in the market," stated Kunal Shah.

Stocks To Buy Today

On Friday, January 12, 2024, Sumeet Bagadia, executive director of Choice Broking, recommended picking up two stocks. The entry price, stop loss, and target price for Vedanta and UNO Minda are as follows.

Vedanta

Buy VEDL in Cash @ Rs 274.60, stop-loss: Rs 265, target: Rs 290

Vedanta Limited (VEDL), currently trading at 274.60 levels, showcases a robust technical posture by maintaining its position comfortably above the key 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). The stock's recent consolidation within the 255-265 levels has set the stage for a potential upward movement, highlighted by a bullish candlestick pattern on the daily charts.

A modest resistance zone at 280 levels presents a crucial juncture for VEDL, and a successful breach could propel the stock towards the target of 290 levels and beyond. Investors should closely monitor the stock's performance around the resistance level, as it could dictate the sustainability of the positive momentum in the near term.
Based on this analysis, one may consider buying VEDL at the CMP of 274.60, setting a stop loss at 265, and aiming for a target of 290.

UNO Minda

Buy UNOMINDA in cash @ Rs 720.05, stop-loss: Rs 702, target: Rs 744

UNOMINDA daily chart analysis reveals a notable shift in market dynamics and also forms a dragon fly doji candlestick pattern on the daily chart transitioning from a period of minor declines and sideways consolidation to a promising upside bounce. The current trading session reflects an up move, potentially signalling an upside breakout from a narrow range momentum. This development aligns with a positive short-term trend, further reinforced by a surge in trading volume.

Key technical indicators, such as the Relative Strength Index (RSI) at 70, underscore the stock's positive momentum. The RSI not only exhibits positive signals but the stock is also trading above crucial moving averages-specifically, the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence suggests sustained strength in UNOMINDA price action.

Based on the above analysis we recommend buying UNOMINDA in cash at CMP of 720.05 for the target of 744 with a stop loss of 702.

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.