Buy or sell stocks: Benchmark indices Sensex and Nifty 50 ended two-session losing streak on Friday, January 16, led by gains in IT majors such as Infosys, TCS, and Tech Mahindra.
The Sensex advanced 188 points, or 0.23%, to close at 83,570.35, while the Nifty 50 finished 29 points, or 0.11%, higher at 25,694.35.
The rise in the benchmark indices was mainly driven by heavyweight IT and banking stocks. The top five gainers in the Nifty 50 were IT stocks. Infosys upgraded its revenue growth outlook, which lifted sentiment across the sector. Banking stocks also advanced on expectations of strong Q3 earnings.
Stock market outlook
Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 traded in a range-bound to mildly positive bias, reflecting continued caution among participants amid the absence of strong global or domestic triggers, on Friday. The index witnessed intraday volatility.
Speaking on the Nifty 50 outlook, Bagadia said, ” Nifty on the 1-hour timeframe continues to trade in a corrective consolidation phase after a sharp decline from recent highs. The index has formed a base near the 25,600–25,550 zone, where repeated buying interest is visible, indicating short-term demand at lower levels.
Price is currently trading below the 20, 50, and 100 EMA, reflecting weak short-term momentum, while the 200 EMA near 25,940 remains a key overhead resistance.
Recent candles show a mild recovery attempt, but the structure still reflects lower highs, suggesting that the move is corrective rather than trend-reversing. Immediate resistance is placed at 25,800–25,850, followed by a stronger supply zone near 25,900.On the downside, 25,500–25,550 remains an important support area; a breakdown below this could invite further pressure.”
Bank Nifty
Bank Nifty traded with a mild positive bias and intraday recovery, showing relative strength compared to the broader market, on Friday. After witnessing selling pressure in the first half of the recent sessions, the index attracted buying interest near lower levels and managed to reclaim key intraday averages, indicating improving sentiment.
On the Bank Nifty outlook, Bagadia said, ” On the 1-hour chart, Bank Nifty has formed a short-term higher low structure, followed by a steady recovery. The index has moved back above the 20 and 50 EMA, suggesting a return of short-term momentum.
The recovery from the recent swing low near 59,000 indicates that buyers are actively defending this zone. However, the price is still approaching a supply area near prior breakdown levels, keeping the structure cautious. Immediate resistance is placed around 60,300–60,400, where selling pressure may re-emerge.
A decisive breakout and acceptance above this zone could open room for further upside. On the downside, 59,700–59,800 acts as the first line of support, while 59,600–59,500 remains a crucial breakdown level; a breach below this could negate the recovery attempt.”
Stocks to buy next week
Sumeet Bagadia recommends three stocks to buy on Monday — Bank of Baroda, JSW Steel, and Grasim Industries.
1] Bank of Baroda: Buy at ₹308.25, Target ₹330, Stop Loss ₹295
BANKBARODA is maintaining a strong bullish trend on the daily chart, marked by a consistent sequence of higher highs and higher lows. After a prolonged consolidation phase during mid-year, the stock has witnessed a decisive trend resumption breakout and is now trading at its all-time highs.
Price is firmly placed above the 20, 50, 100, and 200 EMAs, with all key moving averages aligned upward, confirming strong trend strength across timeframes. The 20 EMA continues to act as an immediate dynamic support, indicating sustained short-term momentum.
Volume has shown noticeable expansion during impulsive up-moves, while corrective phases have been accompanied by relatively lower volumes, suggesting healthy consolidation rather than distribution.
Structurally, the zone around 295–300 now acts as a crucial demand and defining stop-loss level. As long as price holds above this zone, the bullish structure remains intact and favors continuation toward the 325–330 target zone in the near term.
2] JSW Steel: Buy at ₹1187, Target ₹1280, Stop Loss ₹1145
JSW Steel is exhibiting a well-defined bullish trend on the daily chart, supported by strong price structure and moving average alignment. After a corrective phase from recent highs, the stock has staged a healthy pullback and rebound, indicating renewed buying interest at lower levels.
The price is trading above the 20 EMA and 50 EMA, both of which have started turning upward, reflecting strengthening short-term momentum. The stock also continues to hold comfortably above the 100 EMA and 200 EMA, reinforcing the broader bullish bias and trend stability.
Volume behavior supports the move, with higher volume seen during the recent recovery, while the corrective phase showed relatively muted volumes—suggesting accumulation rather than distribution.
Structurally, the 1145 zone aligns with the 50 EMA and recent swing support, making it a logical trend-defining stop-loss level. As long as the price sustains above this level, the bullish setup remains intact and favours continuation toward the 1280 target zone.
3] Grasim Industries: Buy at ₹2809, Target ₹3000, Stop Loss ₹2700
GRASIM is currently in a range-bound to mildly bullish structure within a broader uptrend. The stock has been consolidating after a strong prior rally, indicating time-wise correction rather than price-wise damage.
Price is hovering near the 20 EMA and 50 EMA, suggesting short-term indecision, while the 100 EMA and 200 EMA continue to slope upward and act as strong medium- to long-term support—preserving the overall bullish framework.
Volume has remained largely muted during the consolidation phase, reflecting lack of aggressive selling pressure. Periodic volume spikes during up-moves suggest selective accumulation at lower levels.
Structurally, the 2700 zone serves as a key demand area and defining stop-loss level. As long as the stock sustains above this base, the consolidation is likely to resolve on the upside, with potential upside targets toward the 3000 resistance zone.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
