Trade Call: Buy/Sell Stock Picks By Sumeet Bagadia of Choice Broking On Tuesday, 30th Jan

Triggered by favourable Asian peers, the Sensex ended the day with an uptick of 1,240.90 points at 71,941.57, while the Nifty began the day with a gap up and continued to edge higher throughout the day to close in the green up ~385 points at 21,737.60 level on Monday.

ONGC, Reliance Industries, Adani Enterprises, Coal India, and Adani Ports were the top gainers on the Nifty, while Cipla, ITC, LTIMindtree, Bajaj Auto, and Infosys were the top losers. With the exception of FMCG, every sector saw a positive outcome. PSU Bank, consumer durables, and oil and gas were the best performers.

Market Outlook

Monday's trade belonged to the Energy segment especially giants i.e. Reliance and ONGC. After commencing the week on a strong note around its crucial resistance of 21,500, the Index kept on compounding its gains in the presence of follow-through and finally settled at 21,737.60 with gains of 385 points.

Barring FMCG, all other sectors ended the day in green with Energy and PSU Banking being the top performers. In one go only, the Index has breached its multiple hurdles (21,500 & 21,700) and formed a strong bullish candle on the daily chart; however, we assume that Nifty may witness some pressure around 21,750.

It is premature to say but there is a possibility of forming an Inverted Head & Shoulder pattern. The immediate resistance is placed at 21,850 while the downside seems to be protected at 21,570, said Aditya Gaggar, Director of Progressive Shares.

Nifty Outlook

"The Nifty has surged above the dual resistances of 21500 and 21700. It successfully reclaimed the 20-day moving average (20 DMA) after a few days of struggle. Furthermore, the recent upward movement has propelled the index above the critical moving average, indicating a positive trend for the short term. On the higher end, it is poised to potentially reach levels around 22100-22150. The support level is positioned at 21550," said Rupak De, Senior Technical Analyst, LKP Securities.

Bank Nifty Outlook

"Bank Nifty rebounded after finding support at the 200-day moving average (200 DMA) on the daily chart for the past two days. Despite this positive movement, the index has not completely overcome its challenges as it was unable to close above 45500. Nevertheless, the oversold condition is expected to offer support over the short term. A decisive breakthrough above 45500 could potentially trigger a rally towards 46000 and beyond. On the downside, immediate support is situated at 45100-45000," stated Rupak De.

Stocks To Buy Today

On Tuesday, January 30, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks. The technical analysis for Heritage Foods and Jindal Steel and Power is shown below.

Jindal Steel and Power

Buy JINDALSTEL in cash @ Rs 730.75, stop-loss @ Rs 715, target: Rs 768

Jindal Steel & Power Limited (JINDALSTEL) is displaying promising technical signals on the daily chart, marked by the formation of a bullish candle. Currently trading at 730.75, the stock faces a minor resistance near 740 levels. A successful breach of this resistance could pave the way for an upward move towards the target price of 768 and beyond. The stock has a robust support zone around 715 reinforcing its strength.

JINDALSTEL maintains its position above crucial moving averages, affirming its positive momentum. The Relative Strength Index (RSI) at 53 further underscores the stock's strength. Investors can consider potential entry points as the stock navigates through its resistance levels, with the technical setup indicating a favourable path for upward movement in Jindal Steel & Power Limited.

With a short to medium-term target price of 768, we advise purchasing JINDALSTEL at the CMP of 730.75. If the price closes below 715, our analysis will be regarded as being invalid.

Heritage Foods

Buy HERTIGFOOD in cash @ Rs 340, stop-loss: Rs 331, target: Rs 353

HERTIGFOOD has recently experienced a significant breakthrough above the crucial resistance zone ranging from 310 to 330 on the daily chart. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows. The strong bullish sentiment is further validated by a noticeable surge in trading volume.

Key technical indicators, particularly the Relative Strength Index (RSI), highlight the positive momentum in the stock. The RSI not only indicates favourable trends but also aligns with the stock trading above important moving averages, including the 20-day, 50-day, and 100-day Exponential Moving Averages (EMA). This convergence underscores the continued strength in HERTIGFOOD price action.

In summary, the decisive breakout, along with encouraging volume and the positive alignment of key technical indicators, suggests a bullish outlook for HERTIGFOOD. Traders and investors may interpret this analysis as indicative of potential sustained upward momentum in the stock.

Considering the above analysis, we recommend HERTIGFOOD in cash at the current market price (CMP) of 340, setting a target of 353, and implementing a stop loss at 331.

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.