Stock Market Update: Trade Setup for Nifty 50 Ahead of Q3 Earnings Release Today; Top 5 Stocks to Consider Buying or Selling on Friday, January 24th, 2025.
Stock Market Update: The Nifty 50 index continued its consolidation on Thursday, gaining 0.22% to close at 23,205.35. The S&P BSE Sensex also ended 0.15% higher at 76,520.38. However, the Bank Nifty closed 0.28% lower at 48,589.00, along with the oil & gas index. Despite this, the market saw gains in Pharma, IT, and Auto sectors. Broader indices also saw a rebound of 1-2%.
Trade Setup for Friday: According to Devarsh Vakil, Head of Prime Research at HDFC Securities, the Nifty has found strong support at 22,976 in the short term, with resistance at 23,400-23,500. Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta, predicts that the Bank index may find support at 48,000, potentially leading to a rally towards 49,500-50,000.
Global Markets and Q3 Results: The Bank of Japan’s monetary policy announcement tomorrow, with expectations of a 25bps interest rate hike, will be a key event to watch. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., anticipates trading within a broader range, with stock-specific action driven by quarterly results. Notable results tomorrow include JSW Steel, Indigo, and Godrej Consumer.
Stock Recommendations: Sumeet Bagadia, Executive Director at Choice Broking, has suggested two stock picks for today, while Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommends three stocks.
Today’s stock recommendations from Sumeet Bagadia and Ganesh Dongre are as follows:
1) Sun Pharmaceuticals Industries Ltd:
Bagadia suggests buying Sun Pharma at ₹1833.60 with a stop loss at ₹1769 and a target price of ₹1962. Sun Pharma is currently trading at ₹1833.60 and has shown a strong reversal from levels near the 200-day Exponential Moving Average (EMA). The stock has successfully crossed all its key EMA levels and recently breached a critical resistance level at 1800, indicating a bullish trajectory. With the price trading above the 20-day and 50-day EMAs, the bullish sentiment is further confirmed. If SUNPHARMA breaks above its next resistance level at 1865, it has the potential to reach a short-term target of 1962.
2) Birlasoft Ltd:
Bagadia recommends buying Birlasoft at ₹554.9, with a stop loss at ₹535 and a target price of ₹594. Birlasoft is currently trading at ₹554.9 and has recently rebounded from a key support zone. The stock has broken out of a falling trendline channel on the daily timeframe, signaling a potential bullish reversal. Additionally, BSOFT is trading above its 20-day EMA and is approaching its 50-day and 200-day EMAs. A closing above these moving averages would further strengthen the positive trend. If the stock sustains above the critical resistance level of ₹585, it could present a more favorable entry point for long positions.
3) Aditya Birla Capital Ltd:
Dongre recommends buying Aditya Birla Capital at ₹174, with a stop loss at ₹170 and a target price of ₹182. A notable bullish reversal pattern has emerged in the stock’s recent short-term trend analysis, suggesting the possibility of a temporary retracement in the stock’s price, potentially reaching around ₹182.
Currently, the stock is maintaining a critical support level at ₹170, with the current market price at Rs.174. This indicates a potential buying opportunity for investors as the stock may rise towards the identified target of Rs.182.
Mahanagar Gas Ltd- Dongre recommends buying Mahanagar Gas at ₹1313, with a Stoploss at ₹1280 and a target price of ₹1345. The stock has shown strong support around Rs.1280 and is now displaying a reversal price action formation at Rs.1313, signaling a possible rally towards the next resistance level of Rs.1345. Traders can consider buying and holding this stock with a stop loss at Rs.1280 for a target price of Rs.1345 in the coming weeks.
Supreme Industries Ltd– Dongre recommends buying Supreme Industries at ₹3968, with a Stoploss at ₹3900 and a target price of ₹4050. A bullish reversal pattern has emerged in the stock’s recent short-term trend analysis, indicating a potential retracement to around Rs.4050. The stock is currently maintaining a crucial support level at ₹3900, suggesting a rebound towards Rs.4050 in the near future. Traders are advised to take a long position with a strategic stop loss at ₹3900 to effectively manage risk, targeting a price of Rs.4050.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.