The Indian equity market extended its losing streak into a fifth consecutive session on Friday, January 9, closing deep in the red. Persistent worries over potential US tariffs, a cautious mood ahead of the third-quarter earnings season, and continued selling by foreign institutional investors (FIIs) weighed heavily on sentiment.
Market Sell-Off: Sensex and Nifty Plunge
The benchmark indices witnessed a sharp decline. The Sensex dropped 605 points, or 0.72%, to settle at 83,576.24. Similarly, the Nifty 50 index fell 194 points, or 0.75%, closing at 25,683.30. The sell-off was broad-based, with midcap and smallcap stocks bearing a heavier brunt. The BSE Midcap index slipped 0.90%, while the Smallcap index plunged a significant 1.74%.
Technical Outlook: Nifty 50 and Bank Nifty Analysis
Sumeet Bagadia, Executive Director at Choice Broking, provided a detailed technical perspective on the market's movement. He noted that the Nifty 50 opened weak and continued to decline throughout the day, confirming a decisive breakdown below the crucial 25,800 support level. This breach reinforces a short-term bearish bias.
"Immediate resistance is now placed in the 25,800–25,850 zone, while crucial support is located at 25,500–25,550, For the Bank Nifty, Bagadia observed a sharp bearish move of nearly 590 points, indicating aggressive profit booking. Immediate resistance is seen at 59,500–59,600, with critical support at 59,000–58,900. Despite the weakness, he advises traders to maintain a bullish bias for the longer term and consider a buy-on-dips strategy near key supports with strict stop-losses. Amid the ongoing market correction, Sumeet Bagadia has identified five stocks showing breakout potential. These are shares that have moved past key resistance levels, often signaling the start of a strong price move. 1. CCL Products (India): Buy at ₹942.40, target ₹1,035, stop loss ₹897. The stock has broken out from a five-day consolidation and a falling trendline, trading above its 100 and 200-day EMAs. 2. KSB: Buy at ₹763.70, target ₹830, stop loss ₹730. KSB consolidated sideways before breaking out with a strong close above its recent trading range, indicating renewed strength. 3. HCL Technologies: Buy at ₹1,661.40, target ₹1,780, stop loss ₹1,600. HCLTech has staged a sharp recovery after a recent decline and is trading above all key moving averages, signaling a potential trend reversal. 4. Endurance Technologies: Buy at ₹2,622, target ₹2,825, stop loss ₹2,525. The stock has seen accumulation at lower levels and delivered a breakout on the hourly chart while holding above its 200-day EMA. 5. Ramco Cements Limited: Buy at ₹1,093.80, target ₹1,200, stop loss ₹1,040. This stock shows strength after a falling trendline breakout and is forming a higher high, higher low pattern on short-term charts. This market analysis and stock recommendations are for educational purposes only. The views are those of the individual analyst. Investors are strongly advised to consult with certified financial experts before making any investment decisions.5 Breakout Stock Recommendations for Traders
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