Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Tuesday, 9th Jan

The Sensex ended Monday's trading session at 71,355.22, down 670.93 points, or 0.93 per cent. The Nifty fell 197.80 points, or 0.91 per cent, to close at 21,513 ahead of this week's corporate results session and key worldwide inflation data. Adani Ports, ONGC, Hero MotoCorp, NTPC, and Sun Pharma were among the top gainers on the Nifty, while UPL, SBI, SBI Life Insurance, M&M, and Tech Mahindra were among the top losers. With the exception of media and real estate, all sectors saw negative outcomes on the sectoral indices, while the BSE Midcap index fell 0.8 per cent and the smallcap index down 0.3 per cent on the broader market front.

Market Outlook

Aditya Gaggar Director of Progressive Shares said, "Bears struck back with a bearish engulfing candle. After a steady opening, bulls were seen loosening their grip and the Index started to correct. Post the rangebound mid-session, another round of selling (especially in the banking counters) dragged the Index further lower to end the day at 21,513 with a loss of 197.80 points.

Among the sectors, only Media and Realty managed to end the trade in green while PSU Banks and FMCG were the major laggards. Bearish engulfing around record levels indicates a high probability of a trend reversal where the Index is likely to retest its strong support zone of 21,370-21,400 while the higher side will be capped at 21,650. BankNifty is likely to dent the market sentiments as it has given a breakdown from a Head and Shoulder formation (hourly chart). The immediate support is 46,930 while 47,900 will act as a resistance."

Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "Nifty ended the day close to its support at 21,500 and the short-term 14-day moving average, accompanied by a bearish engulfing candlestick pattern. This indicates a change in market sentiment. If 21,500 is breached in closing figures, Nifty may move towards the next support level at 21,200. The support of 21500 if held can see recovery towards 21650 which is the immediate hurdle zone."

Bank Nifty Outlook

"The Bank Nifty bears staged a strong comeback, leading to a breach of the critical support at 47700 on a closing basis. Selling pressure was evident across the banking sector, and a sustained move below 47700 may result in further declines towards the 47000 level. To resume the uptrend, the index must surpass the key resistance at 48300, targeting the 50000 mark," stated Kunal Shah.

Stocks To Buy Today

Choice Broking executive director Sumeet Bagadia advised purchasing two stocks for Tuesday, January 9, 2024. These are the entry price, stop loss, and target price for TVS Motor Company and Tube Investments of India.

TVS Motor Company

Buy TVSMOTOR in cash @ Rs 2037.80, stop-loss: Rs 1975, target: Rs 2125

TVSMOTOR is presently trading at 2037.80 levels, Bounced from its initial support of 1975 levels which is also close to its 20 Day EMA levels. On daily chart the stock has formed strong bullish candle indicated strength in the stock.
Moreover, TVSMOTOR'S price is currently positioned above its 20-50-200 Day Exponential Moving Averages (EMA), suggesting underlying strength in the stock.RSI indicator is currently trading around 65 levels indicating strength.

Taking all these factors into consideration, it is our professional opinion that TVSMOTOR presents a favourable buying opportunity at the current price of 2037.80, with a target price of 2125. It is important to note that our views would be invalidated if the stock were to fall below the 1975 level.

Tube Investments of India

Buy TIINDIA in cash @ Rs 3769, stop-loss: Rs 3692, target: Rs 3969

TIINDIA 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), 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 TIINDIA price action.

Volume analysis further substantiates the credibility of the upmove, with a pronounced increase accompanying the positive trend.

The comprehensive evaluation of TIINDIA daily chart implies the existence of a broader bullish pattern in the stock price. This, in turn, presents a compelling long trading opportunity for investors seeking to capitalize on the anticipated upward trajectory.

Based on the above analysis we recommend buying TIINDIA in cash at CMP of 3769 for the target of 3969 with a stop loss of 3692.

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.