Stocks to buy or sell: Osho Krishan of Angel One suggests buying Bajaj Finserv, HDFC Bank today - 23 January 2025

Stock Market today: Indian stock markets started the day on a low note on Thursday as selling pressure forced indices into the negative territory. The Sensex commenced trading down by 175.15 points at 76,229.84, while the Nifty 50 experienced a drop of 51.20 points, opening at 23,104.15.

The market showed a predominantly negative trend among Nifty 50 stocks, with 10 advancing, 40 declining, and 1 remaining unchanged. This disparity indicated weak investor sentiment in light of broader economic and global issues.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted two noteworthy trends in the market. First, there is a persistent pattern involving institutional activity—foreign institutional investors (FIIs) are consistently selling, while domestic institutional investors (DIIs) are continuously buying.

Second, a focus on quality is emerging—large-cap stocks are proving to be strong even as the broader market shows signs of weakness. These trends are expected to persist in the short term. Given that the dollar index and US bond yields remain elevated, it is unlikely that FIIs will start buying again in the near future. This situation will limit any potential market rally, despite the market being currently in an oversold condition.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The Nifty 50 experienced a relatively calm session following the volatility observed on Tuesday, with prices trading within the previous day's range and forming an 'Inside Bar' pattern. This pattern currently indicates a support zone around the 23,000–22,900 levels. Prices are also contained within a 'Falling Wedge' formation, and the support levels mentioned align with the lower boundary of this pattern. Additionally, the presence of a positive divergence in the RSI smoothened indicator suggests the potential for short-term market relief.

Resistance levels continue to appear at regular intervals, with a recent peak around the 23,300 - 23,400 zone, which aligns with the 20 DEMA and serves as an immediate obstacle. Although it is premature to declare a definitive recovery, a breakout above the upper boundary of the falling wedge—currently positioned at a dynamic level near 24,000 and above all major moving averages—will be crucial for initiating sustained bullish momentum. While some near-term relief is anticipated, the market remains in a state of uncertainty, and volatility is likely to persist due to several key factors, including upcoming earnings announcements. In this context, the 23,000–22,900 support zone is followed by an additional support zone around the 22,800–22,700 mark.

As the weekly expiry approaches, traders need to keep an eye on these important levels and modify their strategies as needed. With around seven trading sessions remaining before the Union Budget, specific themes are likely to gain attention, presenting potential opportunities for outperformance. Traders are encouraged to remain vigilant and concentrate on relevant sectors or stocks for short-term profits.

Stocks To Buy on Thursday - Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks - Bajaj Finserv Ltd, and HDFC Bank Ltd.

Bajaj Finserv Ltd

Bajaj Finserv has experienced a breakout from consolidation on the daily chart, accompanied by a positive crossover of short-term EMAs above the 200 SMA. Additionally, on a broader time frame, the stock has re-tested the neckline from its ‘Symmetrical Triangle’ breakout and appears poised to maintain positive momentum in the near term. The technical indicators align well with this bullish trend, further enhancing the stock's potential for upward movement.

Hence, we recommend to BUY Bajaj Finserv around 1,730-1,720, keeping a stop loss of 1,660 for a potential Target of 1,820.

HDFC Bank Ltd

HDFC Bank post a significant correction of nearly 14 percent from its peak of 1880 and has been consolidating near its 200 SMA for the past couple of trading weeks, suggesting a breather from its corrective phase. The technical indicators have also dipped into the oversold zone, but recent developments over the last few sessions have resulted in a positive crossover, indicating an initial sign of reversal for the stock. Furthermore, in the past, the stock has shown strong consolidation around the 1,620-1,600 range, suggesting a limitation to the downtrend.

Hence, we recommend to BUY HDFC Bank around 1,650, keeping a stop loss of 1,600 for a potential Target of 1,740.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.