Indian Stock Market Stages Sharp Rebound on Monday
The Indian stock market delivered a powerful recovery on Monday, January 12. Benchmark indices erased early losses to finish the session in positive territory. The Sensex staged an impressive rally, climbing over 1,000 points from its intraday low. It ultimately settled 300 points higher, closing at 83,878. The Nifty 50 index followed suit, gaining 107 points or 0.42% to end the day at 25,790.
However, the broader market painted a different picture. Mid-cap and small-cap indices failed to join the rally. The BSE Midcap index declined by 0.41%, while the Smallcap index fell more sharply, dropping 0.68%.
Market Outlook: Volatility Expected in Near Term
Financial experts anticipate continued market volatility in the short term. Two primary factors are driving this expectation. The ongoing third-quarter earnings season is one key influence. Geopolitical developments around the world also contribute to the uncertain environment.
On the technical front, analysts identify specific levels for the Nifty 50. The index faces significant resistance in the 26,000 to 26,100 range. Conversely, it appears to have solid support between 25,600 and 25,650. This creates a defined trading zone for the near future.
Given these conditions, experts advise investors to focus on stocks with strong technical indicators for short-term positions.
Expert Stock Picks for the Next 1-2 Weeks
Two market analysts have shared their recommendations for short-term trading. Vishnu Kant Upadhyay from Master Capital Services and Hitesh Tailor from Choice Equity Broking suggest five specific stocks. They believe these picks offer potential for gains over the next one to two weeks.
Recommendations from Vishnu Kant Upadhyay
Reliance Industries
- Buy at: ₹1,480
- Target Prices: ₹1,575 and ₹1,610
- Stop Loss: ₹1,406
Upadhyay notes that Reliance Industries shows early recovery signs after a sharp correction. The stock fell nearly 10% from its all-time highs. It has now rebounded strongly from key support levels. These include the 200-day Exponential Moving Average and the 38.2% Fibonacci retracement level. This rebound indicates strong buying interest at lower prices. The analyst points out that recent declines saw relatively low trading volumes. This suggests a lack of aggressive selling pressure. Current price action shows stabilization with improving momentum, hinting at a potential trend reversal.
Varun Beverages (VBL)
- Buy at: ₹493
- Target Prices: ₹525 and ₹540
- Stop Loss: ₹469
Upadhyay highlights VBL's strong bullish technical setup. The stock consistently trades above its 21-day and 55-day Exponential Moving Averages. This indicates sustained strength in both the short and medium term. The stock has successfully formed a base at lower levels, suggesting accumulation. This base formation reduces perceived downside risk. Recent price action shows the stock finding support near its ascending trendline. This reinforces the continuation of the prevailing uptrend. Momentum indicators remain supportive, with the MACD firmly in positive territory. This highlights improving buying momentum.
Bank of Maharashtra
- Buy at: ₹63.5
- Target Prices: ₹68 and ₹70
- Stop Loss: ₹60.60
According to Upadhyay, Bank of Maharashtra trades firmly within a well-defined bullish channel. This reflects sustained buying interest and a strong trend structure. The stock has decisively crossed above a key resistance zone. It posted a strong daily close, confirming a breakout on the charts. Price action remains constructive, forming a clear pattern of higher highs and higher lows. This reinforces the ongoing uptrend. The analyst notes the breakout is further supported by a noticeable surge in trading volumes. This indicates strong participation from buyers.
Recommendations from Hitesh Tailor
Vedanta
- Buy at: ₹627.35
- Target Price: ₹680
- Stop Loss: ₹600
Tailor observes that Vedanta continues to trade in a higher-high and higher-low formation. This indicates a strong bullish trend. The stock recently formed a swing low above the 20-Day Exponential Moving Average and is moving higher. This reflects sustained buying interest. The Relative Strength Index (RSI) stands at 71.53 and remains in a rising trend. On the downside, immediate support is placed near ₹615, where accumulation is evident. Tailor advises short-term traders to consider buying at current levels. He recommends a stop loss at ₹600 and a target of ₹680, following disciplined risk management.
Bank of Maharashtra
- Buy at: ₹63.77
- Target Price: ₹68.62
- Stop Loss: ₹61.89
Tailor notes that Bank of Maharashtra exhibits improving strength. It is forming a gradual rounding bottom with a clear higher high–higher low structure. Sustained trading volumes indicate accumulation and strong buying interest. The analyst highlights that immediate support lies near ₹62.65. With resistance at ₹64.80 decisively breached, the near-term outlook remains positive. Short-term traders may buy at current levels, keeping a stop loss at ₹61.89. The target is ₹68.62, with disciplined risk management over the short-term trading horizon.
Chennai Petroleum Corporation
- Buy at: ₹808.55
- Target Price: ₹920
- Stop Loss: ₹760
Tailor says Chennai Petroleum has recently taken strong support near ₹786. This level aligns with the 200-Day Exponential Moving Average, indicating stability and a potential trend reversal. The stock continues to trade above the key 200-Day EMA, where strong support and accumulation are visible. The Relative Strength Index (RSI) at 39.68 has rebounded from the oversold zone. This signals improving momentum. Short-term traders may consider buying at the current market price. Tailor recommends a stop loss at ₹760 and a target of ₹920, following disciplined risk management practices.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms. We advise investors to consult with certified experts before making any investment decisions. Market conditions can change rapidly, and individual circumstances may vary.
