Trade Call: 2 Tata-Group Stock Picks By Sumeet Bagadia On Thursday, 11th January

On January 10, Indian benchmark indices closed higher for the third straight day ahead of the release of US inflation data on Thursday. The Nifty gained 73.90 points, or 0.34 per cent to close at 21,618.70, while the Sensex surged 271.50 points or 0.38 per cent to settle at 71,657.71.

Cipla, Reliance Industries, Adani Enterprises, HCL Technologies, and Hero Motocorp were among the top Nifty gainers; ONGC, Divis Labs, BPCL, NTPC, and Power Grid Corporation were among the losers. On the sectoral front, media was the top performer followed by metal and consumer durables whereas the worst sectors were FMCG and PSU Bank. On the broader market front, BSE Midcap index added 0.23% while BSE SmallCap added 0.35% respectively.

Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities said, "The Nifty index bounced back strongly from its important support at 21,500, indicating that the bulls are quite active at this level. The Nifty closed at 21,623, near its resistance. If it manages to close above 21,700-21,750 levels, we might see the Nifty reaching 22,000. For those looking to buy Nifty, the recommended range is between 21,550-21,600. Set a stop loss at 21,480 and aim for a target of 21,750."

Bank Nifty Outlook

"The Bank Nifty index experienced a volatile trading session on the day of weekly expiry, but the bulls successfully defended the crucial support level of 47000. Despite this, the overall market sentiment remains in "sell on rise" mode. The immediate hurdle for the index is at 47500, where the highest open interest is concentrated on the call side. To initiate a short-covering move and potentially target the 48000 mark, the index needs to convincingly surpass the level of 47500 on a closing basis," added Kunal Shah.

Stocks To Buy Today

On Thursday, January 11, 2024, Sumeet Bagadia, executive director of Choice Broking, recommended purchasing two stocks. For Tata Power and Voltas, the entry price, stop loss, and target price are as follows.

Voltas

Buy Voltas in cash @ Rs 1011.5, stop-loss: Rs 991, target: Rs 1058

Voltas daily chart analysis reveals a notable shift in market dynamics, 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 74, 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 Voltas price action.

Based on the above analysis we recommend buying Voltas in cash at CMP of 1011.5 for the target of 1058 with a stop loss of 991.

Tata Power

Buy TATAPOWER in cash @ Rs 346.85, stop-loss @ Rs 336, target @ Rs 365

TATAPOWER is positioned at 346.85 levels in the market. The stock exhibits a robust support zone around 336 levels. TATAPOWER is trading above all key moving averages, signalling inherent strength and positive momentum.
The momentum indicator, Relative Strength Index (RSI), is noteworthy, currently hovering around 71 levels. This suggests a favourable momentum in the stock. A slight resistance is observed near 350 levels, and a successful breach of this resistance could potentially propel the stock towards the target price of 365 and beyond.

In summary, the technical parameters, including strong support, moving averages, and RSI, collectively indicate a positive outlook for TATAPOWER, with potential upward movements anticipated in the near term.

Based on the above analysis we recommend buying TATAPOWER at a CMP of 332.15 levels, for a target of 347 with a stop loss of 322.

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.