Stock market today: Favourable global indicators and a mellowed response from US President Donald Trump regarding Greenland invigorated stock market bulls on Thursday, January 22, leading to widespread buying in the Indian equity market.
The Sensex surged more than 850 points, exceeding 1%, reaching an intraday peak of 82,783, while the Nifty 50 also increased over 1% to bounce back to 25,435. The BSE Midcap and Smallcap indices experienced a rise of nearly 2% each.
Market analysts noted that reducing global trade tensions was a significant catalyst for the surge. Additionally, data released on Thursday indicated that domestic institutional investors (DII) purchased shares valued at ₹4,181.74 crore, whereas foreign institutional investors (FII/FPI) divested equities amounting to ₹1,680.25 crore.
Market Views - Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
Nifty 50
After showing weakness with high volatility on Wednesday, Nifty 50 witnessed a reasonable bounce back so far today amidst choppy trend and is currently trading higher by 115 points. The crucial lower support of 200day EMA has been regained after violating below it recently. The overall chart pattern is indicating a possible formation of bottom reversal around 24,900 levels only on a confirmation. Immediate resistance is placed at 25,500 levels.
Technical Picks: Stocks to buy in the short-term
Nagaraj Shetti of HDFC Securities recommends these two stocks to buy in the short-term - Steel Authority of India Ltd (SAIL), and Fortis Healthcare Ltd.
Buy SAIL @ 151.10, Target 159, Stoploss 147, Timeframe 1 week.
The Metal stock price has shifted in to a narrow range movement over the last few weeks. Currently placed at the edge of upside breakout of consolidation movement at ₹150-152 levels. This could also be considered as a bullish flag breakout. Bullish pattern like higher tops and bottoms is intact.
Sell Fortis Healthcare @ 849.25, Target 805, Stoploss 875, Timeframe 1 week.
The minor bounce back in this Hospital stock is likely to be completed soon. The stock price has turned down sharply after forming a new lower top at ₹950 few weeks back. Currently in the process of sharp breakdown of 200day EMA at ₹855-850 levels. The negative volume and RSI patterns are indicating more weakness ahead.
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 taking any investment decisions.
