Trade Call: From TCS To HCL 6 Swing Trading Picks By VLA Ambala On Friday, 19th January

On Thursday, the stock market opened with a nearly 150 points gap and plunged further by 0.50%, closing the day with "Doji Candlestick Pattern" in the daily time frame. Meanwhile, Nifty tested its 21280 range, which was just below its 40-day mark. Notably, in just two days, Nifty has erased almost 1.5 months of its gains. Nifty formed an extremely bearish candlestick on the weekly timeframe.

The Market Mood Index suggests a fear in the market, and the Nifty has broken its key support range. Currently, it is trading at nearly 21500 to 21430 range. It signals a 'Make or Break' situation, as a 2.5% to 4% wide trading range may only be possible in the next 15 days after this range.

The Market Mood Index is pointing nearly to the level of 38, signalling increased fear in the broader market. Interestingly, there's a popular saying in the stock market, "Buy the fear and sell the greed." - which fits perfectly in this market situation. The current market momentum will offer traders and investors plenty of dip buying opportunities in many popular stocks. So, I recommend long-term investors to be ready with funds to invest.

Stock Market Outlook Today

It was indeed a mixed day for the traders. Some sectors closed in Red, while others like Pharma, IT, Media, Realty, and PSU banking sectors managed to close in the Positive territory. Alternatively, the rest of the sectors mostly ended their day under the bear's control.

Nifty formed a bearish candlestick on the weekly timeframe, signalling potential chaos for the bulls of the moment. With this, it is becoming clearer that the market eagerly awaits the upcoming Union Budget to shake things up for the market.

As per my analysis, Media, Pharma, PSU Banking, and IT will be the focus in the upcoming days. Nifty has been trading close to its 20-day EMA, and in case there is a breakdown in the 21540 to 21490 range, I would say selling could continue till the 20900 mark. This is why traders must keep a close eye on the Nifty movement to shape their buying and selling decisions.

RSI, which indicates the overbought and oversold zone of the price, indicated that the Nifty was trading at 72 marks in the previous trading session. Since the Nifty Valuation was on the higher side, it can be credited to the fact that the stock market has been looking for some valid reasons to correct. At present, Nifty is trading at nearly 21550 with RSI at 55 in the daily time frame. This has breached the trailing range for the short-term swing traders, increasing selling pressure.

Key Levels To Watch On 19th Jan 2024

The Nifty currently has substantial support in the range of 21340 and 21220, and buyers may continue to defend the momentum at least in the next few days. Major resistance points for intraday are expected to be observed at 21600 and 21720. On the other hand, intraday support levels for the Bank Nifty are projected at 45200 and 44800, with resistances at 45800 and 46180.

Stocks To Buy Today

Stocks to Buy or Sell Today: VLA Ambala (SEBI Regd. Research Analyst) has recommended 6 stocks to buy on - January 19, 2024. The recommended stocks for Intraday and Swing Trading are SDBL, SBC, IIFL, HCL TECH, WELCORP, and TCS. There's ample room for growth in these top stocks.

SOM Distilleries Breweries & Wineres

Buy - Rs. 305 to Rs. 308, target - Rs. 325 to Rs. 380, STOP LOSS (SL) - Rs. 800

SBC Exports

BUY - Rs. 34.50 to Rs. 37, TARGET - Rs. 40 to Rs. 50, STOP LOSS (SL) Rs. 30

IIFL Finance

BUY - Rs. 645 to Rs. 660, TARGET - Rs. 700 to Rs. 850, and STOP LOSS (SL) - Rs. 600

HCL Technologies

BUY - Rs. 1560 to Rs. 1580, TARGET - Rs. 1720 to Rs. 2000, STOP LOSS (SL) - Rs. 1420

Tata Consultancy Services

BUY - Rs. 3800 to Rs. 3750, Rs. TARGET - Rs. 4000 to Rs. 5500, Rs. STOP LOSS (SL) - Rs. 3580

Welspun Corp

BUY - Rs. 565 - Rs. 590, TARGET - Rs. 630 to Rs. 750, STOP LOSS (SL) - Rs. 525

Note: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, 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.