In contrast to the Bank Nifty, which closed lower for the third consecutive week after trading below its horizontal support zone and key moving averages, such as the 21- and 55-week EMA, indicating a negative trend, the NIFTY index ended the week down 0.48%, continuing its ongoing weekly loss. The Nifty index had a rough day, falling 0.49% (-113.15 points) to close at 23,092.20, while the Nifty Bank index had a wild day, falling 0.46% (-221.20 points) to conclude at 48,367.80. The India VIX volatility index climbed 0.30% to 16.74, indicating a modest spike in market worry. VIX values above 15 historically denote higher volatility.

Nifty Outlook Today

“Nifty’s current trajectory highlights a bearish to sideways sentiment, with persistent selling pressure thwarting any upward momentum. The 23,300-23,350 zone remains a formidable resistance area, reinforced by significant options activity. The broader range of 23,450 to 23,000 defines the immediate market boundaries, with intense positioning underscoring the tug-of-war between buyers and sellers. As the index remains below the 10-day EMA, bullish sentiment continues to falter. For now, as long as the index trades below 23,350, convincing buying opportunities remain absent. The 23,050-23,000 zone, where put writers hold their ground, is critical. If this support zone breaks, intense selling pressure could emerge, triggering unwinding of long positions. Until a decisive breakout occurs on either side, the index is likely to remain volatile. Traders may favor a sell-on-rise approach as long as resistance remains intact, while a breach below 23,000 could exacerbate selling pressure,” commented Mr. Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

“The Nifty Bank index’s trend remains bearish to neutral, with selling pressure overpowering any potential gains. The 48,900-49,000 zone continues to serve as a major roadblock, reinforced by substantial options activity. The immediate trading range of 48,000 to 49,000 defines the market’s boundaries, underscoring the tug-of-war between bulls and bears. Trading below the 10-day EMA has sapped bullish momentum, keeping market sentiment tepid. As long as the index stays below the 49,000 mark, any meaningful buying opportunity remains elusive. Key support at 48,200-48,000, where put writers are holding strong, could determine the next move. A breach of this zone may trigger aggressive selling, fueled by the unwinding of long positions. Until a clear breakout occurs on either side, volatility is likely to persist. For now, the market’s trend suggests a sell-on-rise approach while resistance remains intact. A decisive break below 48,000 could unleash significant selling pressure,” stated Dhupesh Dhameja.

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two stocks on Monday, January 27, after the Nifty index displayed an inverted hammer formation on the daily chart, indicating volatility.

Ganesh Housing Corp

Buy GANESHHOUC in cash @ 1356.9, Stop-loss: Rs 1300, Target: Rs 1450

GANESHHOUC showcases a strong bullish momentum, evident from a notable uptrend from the support levels around 1300, in close proximity to its 20 Day Exponential Moving Average (EMA). substantial upward movement and a significant closing around ₹1356.9. The stock has been experiencing robust buying interest, leading to consecutive gains that could potentially lead to further upward movement after the recent surge, offering an optimistic outlook for investors

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 GANESHHOUC price action.

The surge in volume associated with this upward price action also indicates strong interest and a potential continuation of the rally if the momentum sustains a bullish outlook for GANESHHOUC. Traders and investors may find this analysis indicative of potential continued upward momentum in the stock.

Based on the above analysis we recommend buying GANESHHOUC in cash at CMP of 1356.9 for the target of 1450 with a stop loss of 1300.

Mphasis

Buy MPHASIS in Cash @ 3009.3, Stop-loss @ 2900, Target @ 3222

MPHASIS is currently trading at 3009.3, showing a strong upward trend following a recent breakout above the critical resistance level of 2960. A potential double bottom pattern is emerging, indicating a reversal from previous lows. The stock has rebounded significantly from the 200-day EMA, a level that attracted notable buying interest, and has managed to cross and sustain above key moving averages, including the 20-day EMA, 50-day EMA, and 200-day EMA. This movement confirms bullish momentum in both the short and medium term.

The recent breakout above the 50-day EMA further strengthens the stock’s upward momentum. If MPHASIS successfully surpasses today’s high, it could achieve a short-term target of 3222, signaling continued strength in its price action.

On the downside, immediate support is located at 2940. The Relative Strength Index (RSI) is currently at 60.17 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 2900 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, MPHASIS presents a promising buying opportunity for those aiming for a 3222 target, provided that appropriate risk management strategies are in place.

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.