Market expert Ankush Bajaj has identified three promising stocks for investors to consider on Friday, 16 January 2026. His recommendations come amid a cautious market environment where frontline indices extended losses for a second consecutive session.
Market Recap: Sensex and Nifty Extend Losses
Indian equity benchmarks faced selling pressure on Wednesday, 14 January 2026. The Sensex dropped 245 points, closing at 83,382.71. The Nifty 50 fell 67 points, settling at 25,665.60. Persistent uncertainty over an India-US trade deal, mixed Q3 earnings, and foreign capital outflows weighed on sentiment.
Mid and small-cap segments showed resilience. The BSE Midcap index gained 0.16%, while the Smallcap index rose 0.25%. Stock exchanges remained closed on Thursday due to civic polls in Maharashtra.
Ankush Bajaj's Three Stock Recommendations
1. Punjab National Bank (PNB)
Buy at: ₹128.65
Target: ₹135
Stop Loss: ₹125.60
PNB maintains an uptrend within the PSU banking sector. Strong price action and steady higher lows on the daily chart support this move. The daily RSI at 68 indicates robust bullish momentum, with buyers firmly in control. MACD near +1 shows a positive crossover, backing the ongoing rally. An ADX of 16 reflects an early but improving trend structure.
Technical View: Sustaining above ₹125.60 keeps the bullish bias intact. This could pave the way for an upside move toward ₹135 in the near term.
Risk Factors: As a PSU bank, PNB remains sensitive to news on asset quality, provisioning, and changes in government or banking regulations.
2. NTPC Ltd
Buy at: ₹349
Target: ₹383
Stop Loss: ₹332
NTPC continues its strong upward trajectory, supported by consistent buying interest in power and utility stocks. The daily RSI at 65 reflects healthy bullish momentum. MACD at +5 confirms a solid positive crossover, indicating sustained upside strength. ADX at 28 shows a well-established and strengthening trend.
Technical View: As long as the stock holds above ₹332, the structure remains bullish. Dips closer to support are likely to attract fresh buying, with potential for a move toward ₹383.
Risk Factors: The stock is sensitive to regulatory changes in the power sector, fuel cost dynamics, and tariff-related announcements.
3. Bank of India (BANKINDIA)
Buy at: ₹152.85
Target: ₹172
Stop Loss: ₹143
Bank of India shows a constructive uptrend within the PSU banking space. Improving sentiment in rate-sensitive financials aids this move. The daily RSI at 65 points to strong bullish momentum. MACD at +2 confirms a positive crossover, indicating buyer dominance. ADX at 20 signals an emerging trend with scope to strengthen further.
Technical View: Holding above ₹143 keeps the bullish setup intact. This opens room for an upside move toward ₹172 in the short term.
Risk Factors: The bank is exposed to movements in bond yields, credit growth, and asset quality metrics. Any negative surprise on NPAs or provisioning can affect sentiment.
Nifty Technical Outlook for 16 January
The Nifty ended Wednesday on a weak note, slipping 66.70 points to close at 25,665.60. On the daily chart, the index has slipped below both its 20-day SMA at 25,996 and 40-day EMA at 25,923. This confirms short-term pressure and keeps the near-term tone cautious.
Daily RSI has cooled to 39, edging closer to the oversold band. MACD has turned decisively negative around –48, indicating the recent decline remains in play. The index is in a corrective leg within a broader uptrend.
On the hourly time frame, early signs of a potential relief bounce appear. Nifty has formed a double bottom pattern around the 25,600 zone. RSI on the hourly chart has stabilised near 42 after recovering from oversold territory. MACD remains negative at about –45, but downside momentum has started to slow.
Immediate intraday resistance lies near the 20-hour EMA at 25,800. Sustained trade and a close above this level could trigger a pullback towards 25,980–26,000. Derivatives data still leans bearish, with total Call open interest at 14.76 crore versus 9.99 crore on the Put side.
The 26,000 strike carries the highest Call OI, marking it as strong overhead resistance. On the downside, the largest Put base sits at the 24,500 strike, suggesting positional support for the series.
Overall, the index remains in a short-term downtrend with scope for a technical pullback. As long as Nifty holds above 25,600 and reclaims 25,800 on an hourly close, a relief rally toward 25,980–26,000 is possible. Failure to sustain above 25,600 could reopen the downside toward 25,400 and 25,200.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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.
