Trade Call: 2 Technical Stock Picks By Sumeet Bagadia On Wednesday, 24th Jan

Despite an upsurge in the global market, the markets began Tuesday's trading day higher and fell sharply from the day's high during the closing session. For the second day in a row, benchmark indices ended the trading session on a negative note on January 23.

The Sensex lost 1.47 per cent and closed at 70,370.55, while the Nifty fell by 1.54 per cent intraday to settle at 21,238.80 levels. With the exception of the pharmaceutical industry, every other sectoral index saw declines; the BSE Midcap and Smallcap indices fell by about three per cent apiece. on the broader market front. On the Nifty, the top losses were IndusInd Bank, Coal India, ONGC, Adani Ports, and SBI Life Insurance; the top winners were Cipla, Sun Pharma, Bharti Airtel, ICICI Bank, and Dr. Reddy's Laboratories.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "A few days of consolidation have led to a decline, with Nifty slipping below the lower end of the recent consolidation range. The bearish sentiment appears to be strengthening as Nifty closed at its lowest points on multiple days. Weakness may persist in the short term, with support at 21,200; below this level, the index could potentially decline towards 21,000 and beyond. Looking ahead, the market may continue to be a "sell on rise" scenario as long as it remains below 21,500."

Bank Nifty Outlook

"The market experienced a dominant bearish trend, with sustained selling pressure causing a decline throughout the day. The current sentiment suggests a "sell on rise" strategy, emphasizing the prevailing bearish outlook. Immediate resistance is identified at 45,500 levels, and any upward movement towards this level is viewed as an opportune moment to consider selling positions. On the downside, crucial support is established around the 45,000-44,800 zone. A breach below this support range may intensify the selling pressure, potentially leading to a decline towards the 44,000 mark," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Stocks To Buy Today

Choice Broking executive director Sumeet Bagadia recommended buying two stocks on Wednesday, January 24. Here is the technical analysis of Indus Towers and Bharti Airtel.

Indus Towers

Buy INDUSTOWER in Cash @ Rs 213, stop-loss: Rs 206, target: Rs 231

INDUSTOWER is currently trading at Rs 217.10, undergoing a minor pullback followed by sideways consolidation. The stock has found a support level at the 20-day Exponential Moving Average (EMA), signalling a potential for further upward movement with a target set at Rs 231. A substantial support zone is identified near Rs 206 on the downside.

Notably, INDUSTOWER is currently trading above crucial Exponential Moving Averages, including the 20-day, 50-day, and 100-day EMAs. This indicates a robust bullish momentum, reinforcing the expectation of sustained upward price action.

In terms of risk management, it is advisable to set a stop-loss at Rs 206 to safeguard the investment. A prudent strategy involves actively considering buying opportunities during market dips.

Analysing the technical indicators and prevailing market conditions, INDUSTOWER emerges as a promising buying opportunity. With a target price of Rs 231, contingent upon implementing prudent risk management measures, this stock appears favourable for investors seeking potential gains in the current market environment. The observed support levels, coupled with the bullish momentum, contribute to a positive outlook for INDUSTOWER in the technical analysis landscape.

Bharti Airtel

Buy BHARTIARTL in cash @ Rs 1159, stop-loss: Rs 1143, target: Rs 1199

BHARTIARTL Industries has recently exhibited a robust breakout from the critical resistance zone of 1111-1140 on the daily chart, consolidating the move with higher highs and higher lows. This breakout is supported by a notable increase in trading volume, indicating strong bullish sentiment.

Key technical indicators, particularly the Relative Strength Index (RSI), emphasize the stock's positive momentum. The RSI not only signals positive trends but also aligns with the stock trading above crucial moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This convergence underscores the sustained strength in BHARTIARTL Industries price action.

In summary, the decisive breakout, coupled with favourable volume and a positive alignment of key technical indicators, suggests a bullish outlook for BHARTIARTL Industries. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying BHARTIARTL Industries in cash at CMP of 1159 for the target of 1199 with a stop loss of 1143.

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.