Stocks to buy: Ankush Bajaj recommends three stocks for today—27 January
Summary
- Here are three stocks to buy as recommended by research analyst Ankush Bajaj for 27 January.
Market update: Nifty and Nifty Bank analysis
The market opened flat on Friday, with bulls attempting to take control initially. However, bears regained their dominance in the second half, leading to a decline. Nifty closed down 113 points at 23,092 (-0.50%), while Nifty Bank closed at 48,367, down 221 points (-0.46%).
Major sell-offs were seen in media (-2.60%), realty (-2.31%), and oil & gas (-2.14%). All sectors closed in the red except FMCG (+0.52%) and IT (+0.40%).
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The top performers among Nifty50 stocks were HINDUNILVR (+2.00%), BRITANNIA (+1.77%), EICHERMOT (+1.76%) and GRASIM (+1.20%). The top losers were DRREDDY (-5.04%), TRENT (-4.24%) and M&M (-2.95%),ADANIENT(-2.93%), and BPCL (-2.70%)
Indian stock market outlook
Key levels to watch
- Downside targets: If Nifty breaks the 23,000 level, we could witness a sharp fall. Nifty has attempted to break the 23,000 level three or four times in the recent past, and we may see it hit 22,670 soon.
- Consolidation zone: If selling pressure weakens, the index may consolidate between23,100 and 23,300.
Technical highlights
- Daily chart: Nifty is trading below the 20-day (23,422) and 40-day (23,696) exponential moving averages. The momentum indicator shows a bearish crossover.
- Hourly chart: Nifty is trading below the 20-hour (23,180) and 40-hour (23,205) moving averages, with a negative momentum crossover.
The overall trend suggests a bearish bias with the possibility of further declines unless the index finds support or enters a consolidation phase.
Also read: UltraTech Cement on firm ground, but steep earnings upgrade unlikely
Three stocks to buy, recommended by Ankush Bajaj
BRITANNIA: Buy at ₹5,101; target price ₹5,180-5,210, stop loss ₹5,027
FMCG stocks outperformed the market on Friday. If we analyse the chart of Britannia, it has given a head & shoulders breakout on a smaller time frame. A good rally is expected with a low-risk stop loss.
DIVISLAB: Buy at ₹5,762; target price ₹5,820-5,850; stop loss ₹5,700
On a longer time frame, the stock is trading within a range despite a major sell-off in the broader market, which highlights its strength. The stock has taken support from a major demand zone ( ₹5,752-5,712) and we can expect a pullback up to ₹5,820. If this level sustains, a further move of 80-100 points in the stock is anticipated.
HINDUNILVR: Buy at ₹2,380; target price ₹2,425-2,440; stop loss ₹2,352
In the 15-minute time frame, the stock has given a head & shoulders breakout. Additionally, as discussed, the FMCG sector is outperforming the broader market. One can consider making a long trade here.
Also read: HUL needs a magic wand for recovery after subdued Q3
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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