The market began the day with an upward trajectory for the third straight session on Wednesday. But values steadily dropped throughout the day, nearing Tuesday’s low. A rebound followed in the second half, as prices surpassed the morning highs and ended the day up 0.57%, slightly over the 23150 level. At 48,724.40, up 0.32%, the Bank Nifty showed a modest comeback. A 1.65% decline in the India VIX volatility index to 16.77 suggests that market volatility has subsided.

Nifty Outlook Today

“Technically, the Nifty has found support around 22,980 levels and formed an insider bar candle on the daily chart, indicating strength. If the index defends 22,980 then short term pullback towards 23,300-23,550 could be possible. On the flip side, sustaining below 22,980 could lead to weakness towards 22,850-22,800 levels. On the upside, the 250-Days Simple Moving Average (250-DSMA) hurdle is placed around 23,580 levels, which will act as major resistance for the index. Thus, the sell on rise strategy should be adopted in Nifty,” commented Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).

Bank Nifty Outlook Today

“Technically speaking, Bank Nifty on a daily scale has formed a doji candle, indicating uncertainty. As per the doji candle, the index will find support near 48,000. If the index holds 48,000 levels, then a pullback rally towards 49,500-50,000 could be possible. On the flip side, sustaining below 48,000 levels could extend further weakness,” commented Hrishikesh Yedve.

Stocks To Buy Today

On Thursday, January 23, Choice Broking executive director Sumeet Bagadia suggested purchasing two stocks after the Nifty index remained above its previous low of 22,976.85 and demonstrated a possible recovery by forming a Hammer candle on the daily chart.

L&T Finance

Buy LTF in Cash @ 146.07 SL @ 141 TGT @ 157

LTF is currently trading at Rs 146.07, exhibiting a strong upward trajectory. The stock has reversed from lower levels, regaining bullish momentum, and has closed above the 20-day and 50-day EMAs. The formation of bullish candles on the daily timeframe reinforces the positive trend. Additionally, the stock is approaching its 200-day EMA, and a close above this level would likely sustain the ongoing bullish momentum. The recent breakout above the key resistance level of Rs 150 highlights the potential for further appreciation. If the current trend continues and additional resistance levels are breached, LTF could target Rs 157 in the near term. On the downside, immediate support is observed at Rs 144.

The Relative Strength Index (RSI) stands at 57.30 and is trending upward, signaling increasing buying momentum. To mitigate risk, a stop-loss at Rs 141 is recommended to safeguard against unexpected market reversals.

In conclusion, given the favorable technical setup and positive market indicators, LTF presents a compelling buying opportunity. Traders may consider entering at the current price of Rs 146.07, with a target of Rs 157, while adhering to prudent risk management practices.

Shyam Metalics and Energy

Buy SHYAMMETL in Cash @818.15 SL @789 TGT @ 876

SHYAMMETL is currently trading at Rs 818.15 and is exhibiting a bullish trend, characterized by a series of higher highs and higher lows. The stock is forming a falling channel pattern from higher levels and is approaching a breakout near the Rs 830 level. The 50-day Exponential Moving Average (EMA) is trending upwards and positioned below the current price, reinforcing the bullish sentiment. Similarly, the 200-day EMA is also below the current trading price, indicating a positive long-term trend. If SHYAMMETL successfully breaks above the Rs 830 resistance level, it is poised to achieve a short-term target of Rs 876.

On the downside, immediate support is located at 800. The Relative Strength Index (RSI) is currently at 59.91 and trending upward, reflecting growing buying momentum. To manage risk effectively, a stop-loss at 789 is suggested to guard against any unexpected market reversals.

In conclusion, based on the technical analysis and current market conditions, SHYAMMETL presents a promising buying opportunity for those aiming for a 876 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.