Indian stock market: Both Indian indices – Sensex and Nifty – ended in red on Friday, January 23, on profit booking and ongoing geopolitical uncertainties, after closing with decent gains on previous session.
The Sensex tumbled 770 points, or 0.94%, to end at 81,537.70, while the Nifty 50 declined 241 points, or 0.95%, to close at 25,048.65.
Stock market next week
Nifty 50
According to Sumeet Bagadia, Executive Director at Choice Broking, the Nifty 50 opened on a flat-to-positive note and registered an intraday high of 25,347.95; however, it failed to sustain at higher levels, briefly breached the key support around 25,100, formed a low of 25,050, and eventually closed at 25,048.65. This price action suggests selling pressure at higher levels and a lack of follow-through buying, he added.
“ Immediate resistance is placed in the 25,200–25,250 zone, while crucial support is located at 24,900–24,950. The daily RSI stands at 29.12 and is trending downward, reflecting oversold conditions and continued weakness in momentum. The volatility index, India VIX, declined by 6.31 percent to 14.19, indicating easing market volatility and some reduction in near-term uncertainty. Derivatives data shows heavy call writing at the 25,300 strike and significant put writing at the 25,000 strike, making this zone a crucial near-term pivot. Traders are advised to adopt a cautious approach near key support levels and wait for a decisive breakout above resistance before initiating fresh directional positions,” Bagadia said.
Bank Nifty
The Bank Nifty opened on a flat-to-positive note and registered a modest gain of nearly 146 points, scaling an intraday high of 59,400. However, the index faced selling pressure at higher levels and slipped below the key psychological support of 59,000, touching an intraday low of 58,823, indicating profit booking at elevated levels.
The index closed at 58,473.10, showcasing persistent selling pressure into the close. This price action suggests a weak close and continuation of short-term corrective pressure, Bagadia explained.
On the Bank Nifty outlook, Bagadia added, “Immediate resistance is placed in the 58,700–58,800 zone, while the crucial support band of 58,100–58,200 remains important for maintaining near-term stability in the index. On the daily charts, the RSI stands at 38.98 and is trending lower, indicating weakening momentum and a cautious near-term outlook. Traders are advised to adopt a cautious approach near key support levels and wait for a decisive breakout above resistance before initiating fresh directional positions.”
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Tuesday, January 27. The three stock picks by Bagadia are – Asian Granito India, IFCI, and MMTC.
1] Asian Granito India: Buy at ₹69.15 | Target Price: ₹76.50 | Stop Loss: ₹65.50
2] IFCI: Buy at ₹56.35 | Target Price: ₹62 | Stop Loss: ₹53.30
3] MMTC: Buy at ₹63.83 | Target Price: ₹70 | Stop Loss: ₹60.50
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.
