Trade Call: Buy Or Sell Stock Picks By Sumeet Bagadia of Choice Broking On Wednesday, 31st Jan

Ahead of the Budget, Tuesday's closing session saw significant falls in the major indices, with the Sensex falling 802 points to 71,140 and the Nifty falling 216 points to 21,522 amid weak Asian indices. At 45,368, the Nifty Bank fell 75 points. With a 1:1 advance-decline ratio, the broader market front stayed neutral.

Top gainers on the Nifty were Tata Motors, BPCL, Grasim Industries, Eicher Motors, and Adani Enterprises, while top losers were Bajaj Finance, Titan Company, UltraTech Cement, Reliance Industries, and Bajaj Finserv. With the exception of real estate and PSU Bank, all sectoral indices ended worse than when they started, with consumer durables suffering the most. On the front of the broader market, the BSE Midcap index dropped 0.5 per cent, while the Smallcap index finished flat.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "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."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The BankNifty 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."

Stocks To Buy Today

Executive director of Choice Broking Sumeet Bagadia recommended buying two stocks on Wednesday, January 31. Below is the technical analysis for VMart and PNB.

PNB

Buy PNB in cash @ Rs 109.2, stop-loss: Rs 107.45, target: Rs 113

The analysis of PNB on the daily chart indicates a bullish trend, with the stock exhibiting a higher high and higher low pattern. The recent breakout above the neckline, supported by increased trading volume, suggests a potential upward movement. The Relative Strength Index (RSI) at 72 further confirms positive momentum. Importantly, PNB is trading above its critical 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish sentiment.

In light of this analysis, we recommend a long trading position in PNB. Investors are advised to buy PNB in the cash segment at the current market price (CMP) of 109.2. The target for this trade is set at 113, with a suggested stop loss at 107.45 to manage potential risks. This recommendation is based on the anticipated continuation of the bullish trend indicated by the technical chart patterns and indicators.

V-Mart Retail

Buy VMART in cash @ Rs 2109, SL: Rs 2040, target: Rs 2200

VMART is currently presenting compelling technical indicators on its daily chart, highlighted by the formation of a bullish candle. The stock is actively trading at Rs 2109, encountering a potential resistance zone in the vicinity of Rs 2130. A successful breach of this resistance level holds the potential to serve as a catalyst, propelling the stock upward and potentially achieving the target price of Rs 2200 and beyond. Reinforcing its strength is a robust support zone discerned at Rs 2040.

The positive momentum in VMART is substantiated by its advantageous trading position above crucial moving averages. Additionally, the Relative Strength Index (RSI) at 60 accentuates the stock's resilience, indicating its ability to withstand adverse market conditions. As VMART navigates through resistance levels, investors may identify favourable entry points, leveraging the technical setup that signals a promising trajectory for upward movement.

With a short to medium-term target set at Rs 2200, our recommendation is to contemplate a purchase of VMART at the current market price (CMP) of Rs 2109. This analysis serves to guide investors in harnessing the observed positive market indicators and anticipating the upward momentum in VMART. It underscores the importance of a well-informed investment strategy in the dynamic landscape of the equity market.

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.