The Indian stock market continues to be volatile as the benchmark Nifty 50 index managed to rise marginally on Wednesday, 15 January 2025, extending its winning streak for the second day in a row. The Nifty 50 closed at 23,213.20, up 0.16%, while the S&P BSE Sensex ended at 76,724.08, gaining 0.29%. The strength of the market was largely driven by sectors such as IT, Realty, and Energy, while Healthcare and Auto stocks faced downward pressure. Broader market indices saw modest gains of up to 0.5%.
Trade Setup for Nifty 50: Key Levels to Watch
Market experts believe that Nifty 50 is trading with
range-bound movements after the correcting phase. An important level of the day
has been identified today, 16th January 2025, around 23,260. After crossing
above it, the bounce towards the range 23,350-23,400 may again be witnessed and
if Nifty breaks below this level of 23,130 or 76,300 levels, selling pressure
should increase.
Bank Nifty Outlook: Confused Signs Coming
The Bank Nifty index seems to be signaling mixed trends, and
it continues trading below the 250-DSMA that's around 49,900. This keeps it in
limbo. Once the index dips below 47,900 levels, it's going to trend further
down in the sector; thus, be careful in the space.
International Markets and Economy that will Determine Mood
The domestic market is also subject to global influences, including the rise in US bond yields, a strengthening US dollar, and increasing outflows from FIIs. Analysts are also tracking the US December CPI inflation data, which will remain high in the short term, and thereby limit the interest rate cutting ability of the Federal Reserve. Moreover, an increase in oil prices and a stronger dollar can further worsen the inflation concerns in the domestic market.
Stocks to Buy on Thursday, 16 January 2025
1. Wonder Electricals Ltd
Stop Loss: ₹170
Target Price: ₹190
Wonder Electricals is witnessing a strong bullish momentum with a significant breakout at ₹176.59. The stock enjoys good buying interest and is on a consistent uptrend; it is a good short-term buy.
2. Pearl Global Industries Ltd
Buy at: ₹1622.10
Stop Loss: ₹1555
Target Price: ₹1717
Pearl Global has presented a strong bullish candle, which
insists on even more strength. It is trading above its key moving averages, so
it continues to be on a bullish footing.
3. Tata Communications Ltd
Buy at: ₹1675
Stop Loss: ₹1640
Target Price: ₹1730
Tata Communications is showing bullish reversal pattern, so
with strong support at ₹1640, stock may move upside towards ₹1730.
4. ITC Ltd
Buy at: ₹436
Stop Loss: ₹425
Target Price: ₹450
Reversal from ₹436 by ITC. The stock, hence, is ready to
move back and rally around ₹450 as a buy is very attractive in the market now.
5. Power Grid Corporation of India Ltd
Buy at: ₹298
Stop Loss: ₹292
Target Price: ₹310
Power Grid is reversing the bull trend, and there is strong
support at ₹292 levels. The stock may go towards ₹310 with a decent short-term
upside.
As the market remains volatile, traders should focus on key
support and resistance levels for the Nifty 50, especially in light of global
economic factors like inflation and bond yields. The recommended stocks show strong
bullish trends and could offer good entry points for investors. However, as
always, investors are advised to conduct thorough research and consult with
certified experts before making any investment decisions.
Disclaimer: The views and recommendations presented here are
those of individual analysts or broking firms and do not reflect the opinion of
ICFM. Investors should verify these recommendations with certified financial
professionals before making any trades.
