Intraday Trade Call: 4 Stock Picks By VLA Ambala On Wednesday, 31st Jan

The Nifty index recorded a substantial plunge of 0.99% in Intraday due to the selling pressure resulting from the underwhelming performance of HDFC Bank and Reliance Industries on Tuesday. To elaborate, HDFC Bank closed the day with a 0.71% slump, whereas Reliance Industries alone witnessed a massive drop of 2.79%. At the weekly timeframe, the Nifty had two major support ranges - the first spanning from 21130 to 21250 levels and the second from 21,470 to 21,530.

Notably, yesterday, the stock market recorded a fall of nearly 215 points, closing the day at 21522, which is within the support range. This development marks a crucial 'Make or Break' situation, especially with two major events, namely the Union Budget and Elections, scheduled early this year.

Besides this, the upcoming US Fed interest rate announcement is expected to impact the flow of Foreign Institutional Investor (FII) funds in the Indian market. Considering these key factors, Tuesday's market closure signals an 'Extreme Fear Condition,' with the Market Mood Index pointing around 27.65. Similarly, the India VIX closed the day at 16.10, indicating moderate volatility and a sense of uncertainty in the market.

An Overview of the Stock Market

Taking account of the current market momentum, Nifty is trading close to its daily Exponential Moving Average (EMA) at a daily timeframe. It has also formed a two-bar reversal candlestick pattern known as the Dark Cloud Cover at a daily timeframe. This candlestick pattern indicates a potential reversal. Given the current speculative nature of the stock market, my advice is to implement hedged trading strategies, especially when indices are likely to trade within the wide range of 3-5 in the next ten days, said VLA Ambala (SEBI Regd. Research Analyst).

Notably, the market witnessed substantial declines in sectors such as FMCG, infrastructure, and energy, and in my opinion, the selling pressure may continue for some time. This situation could present potential buying opportunities or dip opportunities for the traders, she added.

Judging the temperament of the market and the fact that we are into the budget week, I believe the focus will be on major sectors such as logistics, automotive, infrastructure, energy, and advanced technologies. I advise investors to closely monitor the movement of these sectors as some stocks in these spaces have already witnessed substantial price jumps, and there could be some discounted entry points, making them significantly lucrative, stated VLA Ambala (SEBI Regd. Research Analyst).

As per my observation, investors are taking this upcoming Feds' January meeting as a prelude to rate-cut measures. They also expect the Feds to lower the federal fund targets range in March as they believe the regulatory body is paving the way to stick a soft landing.

Key Levels to Watch Out On 31st January 2024

The Nifty will be around the support range between 21435 and 21250, whereas the major resistance point for the intraday will be between 21650 and 21800. On the other hand, for Bank Nifty, the intraday support levels are expected to be between the range of 45130 and 44750, with resistance between the 45680 and 46050 levels, according to VLA Ambala (SEBI Regd. Research Analyst).

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) recommends four stocks to buy on - January 31, 2024, namely - ZAGGLE, ALKALI, TVTODAY, and Poonawalla Fincorp Ltd.

Zaggle Prepaid Ocean Services

BUY - Rs. 240, TARGET - Rs. 250/260/270, and STOP LOSS (SL) - Rs. 205

Alkali Metals

BUY - Rs. 147, TARGET - Rs. 155/160/165, and STOP LOSS (SL) - Rs. 129

TV Today Network

BUY - Rs. 253, TARGET - Rs. 260/270/280, and STOP LOSS (SL) - Rs. 227

Poonawalla Fincorp Ltd

BUY - Rs. 450 to Rs. 470, TARGET - Rs. 530 /550/570/600/620/650/700/750/800, and STOP LOSS (SL) - Rs. 370

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behaviour, and technical analysis.

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.