Indian equity benchmarks extended their losses for a second consecutive session on Tuesday, January 6, succumbing to profit-booking despite generally positive signals from global markets. The key indices managed to recoup some of their sharp intraday declines by the closing bell.
Market Performance and Technical Snapshot
The S&P BSE Sensex plunged over 500 points during the day, hitting an intraday low of 84,900.10, which translated to a drop of more than 0.60%. Similarly, the Nifty 50 index fell 0.50% to touch a day's low of 26,124.75. A late-session rebound helped pare losses, with the Sensex finally settling at 85,063.34, down 376 points or 0.44%. The Nifty 50 closed at 26,178.70, a decline of 72 points or 0.27%.
Commenting on the Nifty 50's movement, Sumeet Bagadia, Executive Director at Choice Broking, noted that the index opened weakly and tried to recover to an intraday high of 26,273.95. However, it could not hold at higher levels and slipped below a key support of 26,150, indicating selling pressure. "Nifty managed a modest rebound to close at 26,178, suggesting bargain buying near lower levels," Bagadia stated.
He identified the 26,300–26,350 zone as immediate resistance and placed crucial support in the 26,000–26,050 range. The daily Relative Strength Index (RSI) at 55.45 is trending lower, pointing to moderating bullish momentum. The India VIX, a fear gauge, was largely flat at 10.01, indicating stable market expectations.
Bank Nifty Consolidates with Positive Bias
The banking index opened flat and reached an intraday high of 60,305 but failed to sustain gains, slipping below the important 60,100 mark. According to Bagadia, this suggests a consolidation phase with a positive undertone. Resistance is seen at 60,400–60,500, while support lies at 59,800–59,900. The daily RSI for Bank Nifty is at 65.99 and rising, showing strengthening momentum without being overbought. Traders are advised to maintain a positive bias with a buy-on-dips approach near support levels.
Five Breakout Stock Recommendations for Today
Amid the ongoing market consolidation, Sumeet Bagadia has recommended five stocks showing breakout patterns for potential short-term trading opportunities. Breakout stocks are those that move decisively past their established support or resistance levels, often signaling a strong impending price move.
1. IPCA Laboratories (IPCALAB): Consider buying at around ₹1,469.60. The stock shows strength after a wider-range trendline breakout and is holding above key moving averages. The RSI at 59.06 indicates improving momentum. Target: ₹1,600; Stop Loss: ₹1,405.
2. SBI Cards and Payment Services (SBICARD): Buy near ₹901.55. The stock broke out from a sideways consolidation and is trading above all key EMAs. A symmetrical triangle formation on the weekly chart suggests upside potential. RSI is at 62.17. Target: ₹965; Stop Loss: ₹860.
3. Dr. Agarwal's Health Care (AGARWALEYE): Buy at approximately ₹514.10. The scrip broke out of a 15-day consolidation phase with healthy volumes, indicating fresh buying interest. It trades above key EMAs with an RSI of 56.84. Target: ₹560; Stop Loss: ₹490.
4. Apollo Tyres (APOLLOTYRE): Buy around ₹519.50. After a decline, the stock consolidated and then gave a range breakout supported by volumes, suggesting renewed interest. It displays a higher high and higher low structure. RSI is at 57.21. Target: ₹570; Stop Loss: ₹495.
5. Petronet LNG (PETRONET): Buy near ₹295.30. Following a correction, the stock consolidated in a parallel channel and has now broken out decisively to the upside. It trades above key EMAs, and the RSI at 70.42 signals strong momentum. Target: ₹320; Stop Loss: ₹280.
Disclaimer: This information is for educational purposes only. The views and recommendations are those of the individual analyst. Investors are strongly advised to consult with certified experts before making any investment decisions.
