MarketSmith India Reveals Two Stock Recommendations for January 13
MarketSmith India has identified two promising stocks for investors on January 13. The recommendations come as Indian equity benchmarks finished Tuesday's session in negative territory.
Market Performance on Tuesday
Indian stock markets surrendered early gains to close lower on Tuesday. The Nifty 50 ended at 25,732.30, falling 58 points or 0.22%. The Sensex dropped 250 points to settle at 83,627.69.
Markets gave up significant intraday advances. The Sensex tumbled more than 900 points from its daily peak. Heavyweight stocks like Reliance Industries and Larsen & Toubro faced selling pressure.
Consumer durables and realty sectors performed poorly. Nifty Bank showed relative strength, closing slightly higher. The overall market breadth remained weak.
Geopolitical tensions in the Middle East continue to affect sentiment. Persistent foreign institutional investor outflows also weigh on markets.
First Recommendation: Equitas Small Finance Bank
MarketSmith India recommends buying Equitas Small Finance Bank Ltd. The stock currently trades around ₹68.
Why This Stock Looks Attractive
- Strong retail-focused loan book
- Growing MSME and microfinance franchise
- Improving asset quality metrics
- Expanding deposit base
- Healthy net interest margins
- Increasing branch network
- Strong capital adequacy position
- Digital lending capabilities
- Growing financial inclusion reach
- Stable earnings growth pattern
Key Technical Details
- Current price: ₹68
- 52-week high: ₹75.50
- Volume: ₹47.45 crore
- Pattern: Flat base breakout
Investment Parameters
- Buy range: ₹67–69
- Target price: ₹77 in two to three months
- Stop loss: ₹64
Risk Factors to Consider
- High exposure to unsecured loans
- Sensitivity to asset quality changes
- Credit cost volatility
- Intense banking competition
- Rising funding costs
- Regulatory constraints on small finance banks
- Economic slowdown impact
- Margin pressure possibilities
- Higher operating expenses
- Dependence on retail borrowers
Second Recommendation: Alkem Laboratories
MarketSmith India also recommends buying Alkem Laboratories Ltd. The pharmaceutical stock trades around ₹5,860.
Why This Stock Stands Out
- Strong domestic formulations franchise
- Well-known chronic therapy brands
- Expanding U.S. and international business
- Consistent revenue and profit growth
- Healthy operating margins
- Strong cash generation ability
- Low debt balance sheet
- Wide product portfolio
- Strong research and development pipeline
- Growing institutional ownership
Key Technical Details
- Current price: ₹5,860
- Price-to-earnings ratio: 29.21
- 52-week high: ₹5,933.50
- Volume: ₹107.24 crore
- Pattern: Flat base breakout
Investment Parameters
- Buy range: ₹5,830–5,900
- Target price: ₹7,100 in two to three months
- Stop loss: ₹5,630
Risk Factors to Consider
- US FDA compliance risk
- Pricing pressure in US generics market
- Intense domestic competition
- Input cost inflation
- Currency fluctuation risk
- Regulatory policy changes
- Dependence on key brands
- Slower new product launches
- Margin volatility
- Litigation risk
Market Technical Analysis
The Nifty 50 experienced a choppy, range-bound session on Tuesday. The index closed at 25,732.3, down 0.22%. It oscillated between 25,603 and 25,900 during the day.
Market breadth showed a balanced undertone. Approximately 1,586 stocks advanced while 1,542 declined. This indicates selective participation despite index-level softness.
Nifty IT gained 0.65%, while PSU Banks rose 0.78%. Metals and financial services sectors also outperformed. Consumer durables fell 0.89%, and pharma declined 0.47%.
Momentum indicators present a mixed picture. The Relative Strength Index has cooled from higher levels. It currently sits in the neutral zone. This suggests easing bullish momentum.
The Moving Average Convergence Divergence histogram has slipped into negative territory. The MACD line trends below its signal line. This reflects short-term momentum fatigue.
According to O'Neil's methodology, Nifty's breach of the 50-day moving average has shifted market status to "Uptrend Under Pressure." Immediate support lies at 25,500. Stronger demand appears around 25,300.
Banking Sector Performance
Nifty Bank opened positively at 59,767.55 on Tuesday. The index experienced early volatility before finding support. It drifted to an intraday low of 59,312.05.
Buying interest emerged at lower levels. The index bounced back to close at 59,578.80. This represents a gain of 128.30 points for the session.
Price action suggests selective accumulation of banking stocks. Market participants appear to buy on dips rather than chase prices higher. The session reflected consolidation within an ongoing uptrend.
The RSI indicator positions between 53 and 57. This indicates neutral-to-positive momentum. The index appears neither overbought nor oversold at current levels.
Immediate support for Nifty Bank lies between 59,300 and 59,100. This aligns with the 50-day moving average and recent swing lows. Resistance appears around 59,800–60,000.
About MarketSmith India
MarketSmith India operates as a stock research platform and advisory service. It focuses specifically on the Indian stock market. The platform offers tools and resources to help investors make informed decisions.
The service follows the CAN SLIM methodology. Legendary investor William J. O'Neil developed this approach. Investors can access a 10-day free trial by registering on the company website.
Disclaimer: The views and recommendations in this article belong to individual analysts. These do not represent Mint's views. Investors should consult certified experts before making investment decisions.
