Trade Call: 6 Technical Stock Picks By VLA Ambala On Saturday, 20th Jan

The stock market opened with a strong gap, leading to uplifted market sentiments prevailing all around. While the Media and Private Banking sectors recorded losses during the intraday trading, the PSU banking sector emerged relatively stronger than the private banking sector. Even the global market witnessed an upward trend, boosting confidence in domestic equities.=

Nifty closed displaying a 'Doji' candlestick at the daily timeframe, indicating a sentiment of indecision or a momentary pause in the market. This could be because traders are unsure about the stock market's future direction.

Stock Market Outlook

The range of 21500 to 21430 is a crucial support for the Nifty, and it is quite likely that the raging Bulls will continue striving to defend this level. The current juncture is indeed a make-or-break moment as this wide trading range of 2.5% to 4% would again be possible after 15 days.

The Market Mood Index, which has been pointing around 44, signals some underlying fear in the broader market. However, the intensity of fear is definitely much lower than in the previous trading session. This could hint at a gradual increase in confidence in the stock market among traders and investors.

I would suggest long-term investors get ready with their funds and move ahead with the sentiment of 'Buy the Fear and Sell the Greed' to make the most of the potential dip buying opportunities that may arise in many stocks. However, I would advise them to study the hype and the momentum carefully before trading in them.

The Relative Strength Index (RSI), which highlights the overbought and oversold zone of the stock price, showed that Nifty was trading at 72 in the previous trading session. Currently, Nifty is trading at around 21640, with the RSI pointing towards 55 on the daily time frame. Notably, it has breached the trailing range for short-term traders. This development could prompt them to reassess their trading strategies and make required adjustments in their approach.

That said, the Nifty Major support and the resistance for the next week would be in the 21430 to 21880 range. Interestingly, this is a wide range, and potentially following it, we could expect to see quick momentum in the stock market.

Key Levels to Watch Out on the 20th January, 2024

The Nifty is currently in the support range of 21540 and 21450, and buyers might defend the momentum, preventing it from sliding down further. Notably, the Major resistance points for the intraday would be around 21720 and 21830. In the case of Bank Nifty, the intraday support levels are projected to be between 45300 and 45000, with resistance lying in the 46500 and 46830 range.

Stocks To Buy Today

The Indian stock market will be closed on Monday, January 22, in observance of the public holiday marked for the Ram Temple's "Pran Pratishtha" event in Ayodhya. On Saturday, it will be open from 9 am to 3:30 pm. On the same day, January 20, 2024, VLA Ambala, a SEBI Regd. Research Analyst, recommended buying six stocks.

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended six stocks to buy on - January 20, 2024. The recommended stocks for Intraday and Swing Trading are Ksolves, Mastek, BALKRISIND, MARUTI, KELLTONTEC, and RITES. There's significant growth potential in these six stocks.

Ksolves India

BUY - Rs. 1350 to Rs. 1375, TARGET - Rs. 1600 to Rs. 2150, and STOP LOSS (SL) - Rs. 1000

Mastek

BUY - Rs. 2840 to Rs. 2900, TARGET - Rs. 3500 to Rs. 4450, and STOP LOSS (SL) - Rs. 2310

Balkrishna Industries

BUY - Rs. 2640, TARGET - Rs. 2750 to Rs. 2950, and STOP LOSS (SL) - Rs. 2540

Maruti Suzuki India

BUY - Rs. 10050 to Rs. 10070, TARGET - Rs. 10300 to Rs. 11000, and STOP LOSS (SL) - Rs. 9700

Kellton Tech Solutions

BUY - Rs. 104 to Rs. 105, TARGET - Rs. 107 to Rs. 135, and STOP LOSS (SL) - Rs. 96.30

RITES

BUY - Rs. 555, Rs. TARGET - Rs. 580 to Rs. 740, and STOP LOSS (SL) - Rs. 498

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.