Trade Setup | Things To Know Before Market Opening - 31 Jan 2024 Wednesday

Stock market today: A day following a notable surge of nearly 2 percent each, the benchmark indices, namely the Nifty 50 and the Sensex, experienced a decline of 1 percent each on Tuesday, January 30th. The Nifty 50 opened at 21,775.75 against the previous close of 21,737.60 and touched its intraday low of 21,501.80 and finally closed 216 points, or 0.99 per cent, lower at 21,522.10. The Sensex opened at 72,000.20 against the previous close of 71,941.57 and fell over a per cent to hit its intraday low of 71,075.72 and closed 802 points, or 1.11 per cent, lower at 71,139.90.

“Domestic equities were off from the day’s high amid selling in index heavyweights. Nifty opened positive but soon gave up its gains to close with a loss of 216 points (-1%) at 21522 levels. Majority of the sectors ended in the red. Buying was seen in PSU banks amid healthy 3QFY24 results. Better than expected Europe’s Q4 GDP data, earnings of mega-cap companies globally, and unexpected reduction in the quarterly borrowing estimate by the Treasury Department kept global markets upbeat," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

On the outlook for the Nifty 50 index, “Nifty exhibited volatility throughout the day, with a prevailing bearish trend. The daily chart indicates the formation of a dark cloud cover, implying a bearish outlook in the near term. Support is situated at 21500 on the lower end. A significant decline below this level could potentially initiate a correction in the market. Conversely, sustained trades above 21500 might lead to an upward movement in the market," said Rupak De, Senior Technical Analyst, LKP Securities.

On the outlook for the Bank Nifty today, Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, "The Bank Nifty index has encountered persistent resistance around the 45500 level over the last two days. To initiate a sustained upward movement towards 46000, the index needs to convincingly break through this resistance, which coincides with the highest open interest on the call side. The immediate support on the downside is situated at 45000, and a breach below this level could intensify selling pressure, leading to a decline towards 44700-44500 levels."

On triggers for the stock market today, Siddhartha Khemka of Motilal Oswal said,"All eyes will be on the Federal Reserve’s policy meeting that will commence today. Though Investors expect the US Fed to maintain the status quo, the direction concerning rate cuts will hold importance. Overall, we expect the market to remain range-bound till the two large events (the US Fed meeting & India’s Interim Budget) unfold."

On stocks to buy today, stock market experts — Sumeet Bagadia, Executive Director at Choice Broking; Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi; Mitesh Karwa, Reseach Analyst at Bonanza Portfolio and Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher — recommended nine stocks to buy or sell today.

Maharashtra Gas Limited (MGL) exhibits promising technical indicators on the daily chart, characterized by the formation of a bullish candle. The current trading price stands at ₹1443.70, with a slight resistance anticipated around ₹1450 levels. A successful breach of this resistance holds the potential to propel the stock upward, reaching the target price of ₹1470 and beyond. Bolstering its strength is a robust support zone identified at ₹1426.

MGL's positive momentum is affirmed by its position above crucial moving averages, while the Relative Strength Index (RSI) at 83 underscores the stock's resilience. As the stock navigates through resistance levels, investors may find opportune entry points, supported by the technical setup that indicates a favourable trajectory for upward movement in Maharashtra Gas Limited.

With a short to medium-term target set at ₹1470, we recommend considering a purchase of MGL at the current market price (CMP) of ₹1443.70. This analysis aims to guide investors in capitalizing on the observed positive market indicators and the anticipated upward momentum in Maharashtra Gas Limited, emphasizing a well-informed investment strategy.

The current market status of the stock reveals a favourable position as it trades around 445 levels. An upward movement from the robust support at 415 levels has been observed, showcasing the stock's resilience. Furthermore, the stock is trading above crucial moving averages, including the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs, signifying sustained strength.

Momentum is indicated by the RSI (Relative Strength Index), which is on an upward trajectory and currently stands at 76. This RSI movement reinforces the stock's inherent strength. A minor resistance around 450 levels is noteworthy, and a potential breakout beyond this level could propel the stock towards the target of 465 and beyond.

According to the aforementioned technical analysis, we advise buying PNCINFRA at the CMP of 446 for the target of 465. If the stock closes below 432, our analysis will be invalid.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 790 so, holding the support level of 745 this stock can bounce toward the 790 level in the short term, so the trader can go long with a stop loss of 745 for the target price of 790.

In the short-term trend, the stock has a bullish reversal pattern, technically retrenchment could be possible till 185 so, holding the support level of 172 this stock can bounce toward the 185 level in the short term, so the trader can go long with a stop loss of 172 for the target price of 185.

The stock has indicated a trend reversal from the bottomed made near 153 zone and has improved the bias with series of positive candle formation on the daily chart. The RSI has signalled a buy and with sugar stocks in momentum, in the coming sessions we expect further rise in the stock with near-target of 175 level visible. We suggest a buy in this stock keeping the stop loss of 158.

The stock has maintained a strong base near 1830 zone and currently, once again, has picked up well with a bullish candle pattern on the daily chart moving past the confluence of important 50EMA and 200 period MA level of 1940 zone to improve the bias and is expected to rise further in the coming sesssions. The RSI has signalled a buy with near-target of 2070 level visible. We suggest a buy in this stock keeping the stop loss of 1900.

The stock after the decent rally has consolidated with currently maintaining a good support near 1630 zone has witnessed a positive candle with volume pick up to anticipate for further spurt in the stock in the coming sessions. With the RSI, currently well placed, after cooling off from the overbought zone, has shown indication for second round of momentum and we suggest a buy expecting initial target of 1780 level keeping the stop loss of 1670.

WABAG is seen to be breaking out of a resistance zone on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets upto Rs.720. One can initiate buy on dip in the range of 677-679 with stoploss below 662 on daily closing basis.

NCLIND is seen to be breaking out of a resistance zone on the daily timeframe and making a bullish candlestick which is why a buy recommendation is initiated for targets upto Rs.248. One can initiate buy on dip in the range of 237-238 with stoploss below 233 on daily closing basis.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of PickStock. We advise investors to check with certified experts before making any investment decisions.

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