Nifty 50 on 9 January: Recap
On Thursday, 9 January, bearish momentum persisted, with the market showing a clear inclination towards a negative bias. Traders are advised to consider shorting the index during any temporary recoveries.
As the earnings season unfolds, individual stock performance will largely hinge on earnings expectations. It’s crucial for market participants to adjust their strategies, focusing on stronger sectors or themes for long positions and targeting weaker segments for short trades.
Indian stock markets: Way forward
Market sentiment remains tilted toward a potential decline rather than an advance. As noted earlier, intraday support around 23,400-23,500 on the Nifty continues to hold firm. The Relative Strength Index (RSI) remains above the 30-level, signaling a possible rebound attempt from lower levels, as reflected in the accompanying chart.
Despite these signals, the broader trends remain under pressure, and recent sessions have been range-bound. Option data suggests 23,500 is forming a critical support base, while the Max Pain point at 23,600 could serve as a key tipping level in the coming sessions.
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The Put-Call Ratio (PCR) stands at 0.65, indicating an oversold status. Given this, traders should avoid aggressive short positions at this stage. Instead, it’s advisable to use market rallies as opportunities to initiate fresh short trades, keeping an eye on evolving market dynamics.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
• GIC RE: Buy above ₹465, stop ₹445, target ₹490
After a sharp rise the reaction in this stock has produced a demand once again post a profit booking. As trends are holding on, the potential for moving higher emerges, we can consider that the bias in the market can help. One can look to participate as trends have turned positive once again. Consider a buy.
• Zen Technologies Ltd: Buy above ₹2,539, stop ₹2,490, target ₹2,595
This defence counter from is showing some steady resolve and holding higher levels. The prices are demonstrating steady market action in the last few days. The RSI is gaining strength reflecting the resolve to move higher indicating signs of buying emerging. One can look to buy.
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• Pokarna Ltd: Buy ₹1,391, stop ₹1,368, target ₹1,438
POKARNA is one of the largest exporter of granite and is finding some good volume in the last few days. We are observing that the trends are showing some steady upside despite in this volatile market. Currently the momentum is gaining traction and can look to head higher in the coming days.
Raja Venkatraman is co-founder, NeoTrader.
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.
