Stocks to buy: Ankush Bajaj recommends three stocks for today—23 January

Market update: Nifty and Nifty Bank analysis

The market commenced trading with a 62-point gap up at 23,115 and touched an intraday low of 22,981.30. It subsequently witnessed a sharp reversal, surging upwards to close at 23,161.75 The BSE Sensex closed at 76,404.99, up 0.75%.

Nifty Realty, Nifty Alpha-50 and Nifty Media indices underperformed the market and closed in the red.

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The top performers among Nifty50 stocks were WIPRO (+3.87%), INFY (+3.10%), TCS (+2.88%) and TECHM (+2.36%). The top losers wereBEL (-3.01%), TATA Motors (-2.16%) and TRENT (-1.95%).

Indian stock market outlook

The Nifty has been testing 23,000 repeatedly. If it closes below this, further downside can be expected. From a technical perspective, the index is trading below major exponential moving averages (EMAs).

A relief rally is visible on the hourly chart, but a clear bullish trend will only emerge if Nifty closes above 23,600.

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Three stocks to buy, recommended by Ankush Bajaj

BAJAJHLDNG: Buy at ₹11,286; target price ₹11,500-11,615; stop loss ₹11,144.

After a gap-up opening, the stock rallied almost 4.5% yesterday and closed above 11,000, holding that level firmly. Momentum in the stock remains positive, indicating a good bullish trade setup.

WIPRO: Buy at ₹310; target price ₹325-335; stop loss ₹304

The IT index outperformed the market, with Wipro stock rallying almost 3.6%. It is expected to touch 325-335. Additionally, the RSI is above 60 on the hourly charts, indicating bullish momentum in the stock.

HDFCBANK: Buy at ₹1,666; target price: ₹1,715; stop loss ₹1,647

HDFC Bank posted strong numbers, and the rally is expected to continue for a few days. The stock has bounced back from a strong demand zone of ₹1620-1640. This rally could extend beyond ₹1,700, making for a good long trade with low risk.

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

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

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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.