Stock market recommendations: According to Aakash K Hindocha, Deputy Vice President – WM Research, Nuvama Professional Clients Group, Bharat Dynamics Ltd, JK Cement, Tata Steel are the top stock picks for today. Here’s his view on Nifty, Bank Nifty and the top stock picks for January 30, 2025:
Index View: Nifty
Nifty has recovered close to 400 points from its panic lows seen at the start of this eventful week. The index has reclaimed 23000 levels on a closing basis and also closed above its previous day’s high indicating reemergence of confidence in buyers at the cusp of FOMC outcome impact on Indian markets. Union Budget is also lined up at the end of this week while a monthly expiry trade is scheduled for today. A reclamation of 23350 looks visible on cards ahead of the big event of Union Budget 2025 while on downside 23000 can be seen as an active support zone.
Bank Nifty
Banking names have been outperforming and is likely to continue going into the budget largely due to a tailwind on the macroeconomic front triggered by the central bank in easing liquidity in the system. A double bottom formation on daily charts occurred in opening trade this week which has created a 3% rally in the past 3 trading days on the index. No negative in the union budget this time can be a huge positive for the banking names and this eyes for an initial rally towards 50500 on the upside with outperformance likely to continue in the near term.
BDL (BUY)
LCP: 1229.45
SL: 1190
TGT: 1335
Bharat Dynamics Ltd: A retest of the recent broken out bullish pole and flag pattern has freshly ignited long positions onto this counter while the overall targets appear much large, given the ongoing volatility we would play this for a 8-10% up move with a minimal stop set at 1190. A closing above 1247 is set to ignite further momentum on this name.
JKCEMENT (BUY):
LCP: 4890.80
SL: 4750
TGT: 5215
With JKCEMENT breaking into fresh all time high when there is turmoil in larger breed of stocks on the street it indicates buyers interest despite the market breadth being tilted towards bears for the past few weeks. A bullish cup and handle breakout has been spotted as of close of trade on Wednesday with initial targets seen for a 6-8% run while the overall targets appear to be much higher in a stable market environment.
TATASTEEL (BUY):
LCP: 130.80
SL: 124.50
TGT: 143
Historically the stock has found strong medium term support at its 200 week moving average while this time, the charts have formed a double bottom as well as a double bullish hammer pattern on weekly charts which coincide taking support at the 200 week moving averages. A quick 10% rally from current levels cannot be ruled out given that CMP holds onto till the end of this week.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.