Stocks to buy or sell: Osho Krishan of Angel One suggests buying Apollo Micro Systems, IRFC shares on 29 January

Stock market today: The main domestic stock indices, Nifty 50 and Sensex, moved lower after starting off flat on Thursday. Following two days of gains spurred by the trade deal with the European Union, investors turned their attention to the budget set to be revealed on Sunday.

The budget is vital as it provides indications of economic growth and corporate profits in the world’s fastest-growing major economy. There will be a special session on Sunday when the markets will be open.

In the meantime, the US Federal Reserve kept interest rates steady, as had been widely expected.

At 9:15 IST, the Nifty 50 saw a slight increase of 0.01% to reach 25,345, while the BSE Sensex rose by 0.03% to 82,368.96.

The rupee reached an all-time low of 92.00 against the US dollar during early trading.

February futures for MCX gold surged by nearly ₹10,000, or 6%, reaching a historic high of ₹1,75,869 per 10 grams.

March futures for MCX silver jumped by ₹21,500, or nearly 6%, achieving a record high of ₹4,06,863 per kg.

Around the world, Asian markets displayed mixed results, while the US stock market mostly rose the previous night after the Federal Reserve opted to maintain current interest rates.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The Indian equity markets exhibited notable resilience, characterized by robust participation from across the board. The benchmark index commenced on a positive trajectory and, despite experiencing some volatility throughout the trading session, successfully maintained its upward momentum.

Notably, a surge in buying activity during the penultimate hour of trading played a significant role in securing a favorable closure for the index. Consequently, the Nifty 50 index achieved a positive closing for the second consecutive session, concluding around the 25,350 level, with an overall gain of 0.66 percent.

The advance-decline ratio is currently exhibiting a strong bias towards bullish sentiment, which serves as an early indication of a potential 'Budget Rally' ahead of the main day. On the technical front, the 14-day RSI has demonstrated a positive crossover, and with the Nifty 50 experiencing a significant decline and hovering near the crucial support of the 200-day SMA, contributes to the possibility of a bullish reversal.

However, it is important to note that the market is not yet fully stabilized; therefore, a prudent approach is recommended. On the levels front, the 25,150 mark (200 DSMA) is expected to provide a buffer against any short-term fluctuations, while the range of 25,000-24,900 is anticipated to act as a sacrosanct support zone. On the resistance side, the range of 25,450-25,500 is likely to present an intermediate obstacle, and a decisive breakout above this level may revive buying interest in the index.

Considering recent developments, it appears that our domestic market is positioned to gain momentum amid the Budget week. It is essential to concentrate on specific stocks and themes that may exhibit anticipatory movements in advance of this event. Furthermore, it is imperative to remain informed about both global and macroeconomic trends, as these factors could serve as catalysts for short-term market fluctuations.

Stocks To Buy on Thursday- Osho Krishan

On stocks to buy on Thursday, Osho Krishan of Angel One recommended two stocks - Apollo Micro Systems Ltd, and Indian Railway Finance Corporation Ltd (IRFC).

Apollo Micro Systems Ltd

Apollo Micro Systems has witnessed a significant plunge from the ATH of 355 zone and is now placed near the 200 DEMA, which even coincides with the breakout neckline in the counter. In the recent sessions, a strong rebound from the oversold parameters, followed by positive divergence in price and 14-day RSI, has reinstated buying momentum in the counter. The risk-reward seems favorable, and a strong momentum is likely to be seen in the near term.

Hence, we recommend a BUY in Apollo Micro Systems around ₹235-230 with a Stop Loss of ₹215 and a Target of ₹265-270,

Indian Railway Finance Corporation Ltd (IRFC)

IRFC has shown a rebound from the historical support of 110 subzones in recent sessions, and has surged towards the short-term EMAs, which indicates the onset of a counter-trend. From a technical perspective, the 14-day RSI has shown a positive crossover from sub-oversold territory, suggesting a potential pullback. Furthermore, the anticipatory move ahead of the Budget session in likely to be in play, adding a favourable quotient in the counter.

Hence, we recommend a BUY in IRFC around ₹118-115 with a Stop Loss of ₹105 and a Target of ₹138-145.

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