Trade Call: 9 Breakout Stock Picks By VLA Ambala On Thursday, 18th Jan

Nifty witnessed an unexpected 2% overnight drop, with the banking index experiencing intense selling, resulting in a 4.28% plunge in just one trading session, contrary to positive Q3 results from the Banking and IT sectors. Although selling pressure and profit-taking are inherent in market dynamics, the current momentum doesn't signal a complete reversal. This primarily has a connection to the spike in the US bond yields and the dollar index and concerns over delays in interest rate cuts. In addition, the Iraq and Pakistan air strikes that occurred recently are also triggering factors. Selling was major primarily due to the performance of the banking and metal sector, and the impact seen was due to the increased dollar rate.

Stock Market Outlook Today

Amid all weak global cues, a hike in the dollar rate and the impact of HDFC Bank ADR and metal stocks have surprised the market. Interestingly, IT was the only sector that closed the day in green. There was a deep gap down opening, and the market closed at lower points by the end of the day.

Nifty has formed a "Gravestone Doji" candlestick pattern on the daily time frame, which is considered a bearish candlestick and leads to more selling in the coming days. Nifty is trading very close to its 20-day EMA, and if this gets a breakdown of the 21540 to 21490 range, selling may continue till 20900.

RSI, which indicates the overly bought and oversold zone of the price range, indicated that Nifty was trading at 72 marks in the previous trading session. Nifty Valuation was on the higher end since the market was looking for some valid reasons to correct. Now, Nifty is trading at nearly 21550 with RSI at 55 at the daily time frame. It has breached the trailing range of short-term swing traders.

The Nifty currently has substantial support in the range of 21500 and 21380, and buyers are expected to defend this momentum in the following days. Major resistance points for intraday will be seen at 21680 and 21720. Intraday support levels for the Bank Nifty are projected at 46000 and 45700, with resistances at 46480 and 46850.

Stocks To Buy or Sell Today

The recommended stocks for Intraday and Swing Trading are ATFL, JINDALSTEL, HINDUNILVR, WELCORP, BORORENEW, BRIGHT-ST, GREENPANEL, AURUM, and SHEMAROO. A good potential is seen in these top stocks said VLA Ambala (SEBI Regd. Research Analyst) recommends nine stocks for purchase today - January 18, 2024.

Agro Tech Foods

Buy at Rs 846, target: Rs 880-935, stop loss Rs 800

Jindal Steel And Power

Buy at Rs 720, target: Rs 750-800, stop loss Rs 700

Hindustan Unilever

Buy at Rs 2560, target: Rs 2695-2750, stop loss Rs 2440

Welspun Corp

Buy at Rs 575, target: Rs 600-730, stop loss Rs 520

Borosil Renewables

Buy at Rs 475, target: Rs 520-600, stop loss Rs 450

BRIGHT-ST

Buy at Rs 7.35, target: Rs 8.20-12, stop loss Rs 6.60

Greenpanel Industries

Buy at Rs 410, target: Rs 425-475, stop loss Rs 395

Aurum Proptech

Buy at Rs 160, target: Rs 180-250, stop loss Rs 138

Shemaroo Entertainment

Buy at Rs 188, target: Rs 210-300, stop loss Rs 152

Disclaimer: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.