Top three stocks to buy today—recommended by Ankush Bajaj for 19 January

Three stocks to buy today, recommended by Ankush Bajaj

Buy: Tech Mahindra Ltd

• Why it’s recommended: Tech Mahindra has confirmed a bullish rectangle breakout near the ₹1,650 zone, indicating a clear shift from consolidation to trend continuation. The breakout is backed by improving momentum and strong participation. The daily RSI at 65 reflects healthy bullish strength without entering overbought territory. The MACD at +16 has delivered a bullish crossover, confirming upward momentum, while the ADX at 23 signals a strengthening trend, validating the breakout structure.
• Key metrics: RSI (14-day): 65 — bullish momentum
• MACD (12,26): +16 — bullish crossover
• ADX (14): 23 — trend strength improving
• Technical view: Sustaining above the ₹1,650 breakout level keeps the bullish structure intact and opens the door for an upside move toward ₹1,740 in the near term.
• Risk factors: Sensitive to global IT spending trends, US tech sentiment, and currency volatility.
• Buy at: ₹1,670.50
• Target price: ₹1,740
• Stop loss: ₹1,640

Buy: Bharat Petroleum Corporation Ltd

• Why it’s recommended: BPCL has delivered a bullish breakout from a falling wedge pattern on the hourly chart, a classic reversal setup. The hourly RSI at 60 signals improving momentum, while the MACD at +1 confirms a positive crossover supporting the breakout. The ADX at 23 indicates that a fresh trend is developing, increasing the probability of follow-through buying. Price action above the upper channel reflects growing buying interest.
• Key metrics: RSI (hourly): 60 — bullish momentum building
• MACD (12,26): +1 — positive crossover
• ADX (14): 23 — trend gaining strength
• Technical view: Holding above ₹359 keeps the breakout valid and can push the stock toward ₹372 in the short term.
• Risk factors: Vulnerable to crude oil price volatility, refining margin fluctuations, and government policy interventions.
• Buy at: ₹363.20
• Target price: ₹372
• Stop loss: ₹359

Buy: State Bank of India

• Why it’s recommended: SBI is displaying exceptional strength within the banking space, supported by strong momentum and trend confirmation. The daily RSI at 74 highlights powerful bullish momentum, typical of strong trending stocks. The MACD at +17 remains firmly positive, confirming sustained buying interest, while the ADX at 40 reflects a well-established and strong trend structure. Price action continues to remain firmly in control of bulls.
• Key metrics: RSI (14-day): 74 — strong bullish momentum
• MACD (12,26): +17 — bullish continuation
• ADX (14): 40 — strong and established trend
• Technical view: As long as the stock sustains above the ₹1,020– ₹1,025 zone, the bullish structure remains intact with scope for further upside in the near term.
• Risk factors: Sensitive to interest-rate expectations, credit growth data, and broader financial sector sentiment.
• Buy at: ₹1,042.30
• Target price: ₹1,058
• Stop loss: ₹1,035

Market wrap: 16 January

Friday’s upside was driven largely by a strong rebound in information technology stocks after better-than-expected December quarter earnings from a key large-cap IT major. Supportive global cues, including gains in US tech shares and strength in select Asian markets, further underpinned sentiment even as persistent foreign institutional selling and worries around crude and global growth capped the overall move.

Within the Nifty basket, IT names dominated the gainers’ list. Infosys surged about 5.6%, emerging as the top performer, followed by Tech Mahindra, which rallied roughly 5.3%. Wipro advanced close to 2.5%, while HCL Tech gained around 2.4%, reflecting renewed appetite for export-oriented software stocks after a period of cautious guidance and muted performance.

On the losing side, select financials and defensives weighed on the index: a key diversified financial player slipped over 3%, Jio Financial Services fell about 3.1%, Cipla declined nearly 2.5%, and Hindalco shed roughly 2.4%, limiting the index’s advance despite strength in IT.

Sectorally, the Nifty IT index was the clear outperformer, jumping over 3% on broad-based buying in frontline and mid-tier technology counters. PSU banks also fared well, with the Nifty PSU Bank index gaining a little over 1% as investors selectively accumulated state-owned lenders. In contrast, the Nifty Pharma index dropped more than 1% amid profit booking in large-cap drug makers, while the Nifty Consumer Durables index slipped around 1.1% as traders rotated out of richly valued consumption names into cyclicals and value pockets.

Nifty technical view: 16 January

The Nifty 50 ended Friday’s session marginally higher at 25,694.35, gaining 28.75 points or 0.11%, but the broader technical picture continues to reflect caution rather than strength. Despite the positive close, the index remains under pressure after the recent corrective phase, and the recovery so far appears more like a pause than a decisive reversal.

On the daily chart, Nifty is still trading below its key short-term averages. The 20-day DMA is placed at 25,990 and the 40-day DEMA at 25,912, both of which are well above the current closing level, indicating that the index has not yet reclaimed its short-term trend.

Daily RSI has slipped to around 40, hovering near oversold territory, which reflects weak momentum and lack of strong buying interest. The MACD on the daily timeframe remains negative at –57, confirming that the broader trend is still bearish and that downside pressure has not fully dissipated. However, the index is holding above the 20-HMA at 25,782 and the 40-HEMA at 25,669, which suggests the presence of a near-term base and limits immediate downside risk.

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From an intraday perspective, momentum remains subdued. The hourly RSI stands near 45, pointing to neutral-to-weak short-term strength, while the hourly MACD at –21 continues to stay in negative territory, highlighting that intraday recoveries are facing selling pressure at higher levels. Unless the index manages to build follow-through buying above the 25,800 zone, the upside is likely to remain capped in the near term.

The derivatives data reinforces this cautious to bearish bias. Total Call open interest stands significantly higher at 20.30 crore compared to Put open interest of 13.23 crore, resulting in a negative PE-CE differential of –7.07 crore. This indicates stronger call writing and a clear ceiling being placed on the upside. Fresh positions also favour the bears, with Call OI rising sharply by 5.79 crore against a 3.37 crore addition on the Put side, keeping the OI change trend bearish.

The 26,000 strike continues to act as a major resistance with the highest Call OI, while 25,900 has seen notable fresh call additions. On the downside, the 25,700 strike holds the maximum Put OI and the highest Put OI addition, marking it as an immediate support zone.

Overall, while Nifty has managed to close slightly in the green, the technical and derivatives setup suggests that the index remains in a corrective to consolidation phase. As long as it stays below 25,900–26,000, rallies are likely to face selling pressure. Immediate support lies near 25,700, and a break below this could reopen downside toward 25,500. For a more sustainable recovery, Nifty will need to decisively reclaim the 26,000 mark with improving momentum and broader participation.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.