Indian Markets Reverse Course After Brief Recovery
Indian equity benchmarks surrendered their gains on Tuesday, January 13, following a short-lived recovery. The markets turned negative as investors engaged in profit booking. Ongoing worries about US tariffs, persistent foreign fund withdrawals, and mixed signals from global markets contributed to the downward pressure.
Sharp Intraday Decline Followed by Partial Recovery
The 30-share Sensex index experienced a significant drop during the trading session. It fell more than 600 points, representing a decline of 0.73 percent. The index reached an intraday low of 83,262.79 points. Similarly, the Nifty 50 index slipped 0.72 percent to touch 25,603.30.
Both benchmarks managed to recover some ground by the closing bell. The Sensex finished 250 points lower at 83,627.69, down 0.30 percent. The Nifty 50 ended the day at 25,732.30, declining 58 points or 0.22 percent.
Nifty 50 Shows Resilience Despite Volatility
Sumeet Bagadia, Executive Director at Choice Broking, provided insights into the day's trading activity. He noted that the Nifty 50 opened positively but remained volatile throughout the session. The index corrected nearly 300 points from its daily high during the first half. However, it staged a recovery of around 156 points in the second half.
This recovery demonstrated buying interest at lower price levels. The index managed to close above last month's low, suggesting reduced immediate downside pressure. Bagadia observed that the Nifty 50 decisively broke above the 25,700 resistance level. It closed at 25,732, indicating a marginal improvement in near-term sentiment.
Immediate resistance now lies in the 25,850–25,900 zone. Crucial support is located between 25,550 and 25,600. Derivatives data shows heavy call writing at the 26,000 strike. Strong put writing appears at the 25,700 strike, establishing a defined near-term trading range.
Bagadia suggested that as long as the Nifty sustains above 25,600, investors may consider a selective buy-on-dips strategy. He emphasized the importance of strict stop-losses placed at 25,500 to manage downside risk effectively.
Bank Nifty Experiences Similar Pattern
The Bank Nifty opened positively but witnessed a sharp bearish move of nearly 450 points. It slipped to an intraday low of 59,500. The index then staged a strong rebound of approximately 330 points from lower levels. It eventually closed at 59,578.80, reflecting strong buying interest near support zones.
Bagadia highlighted that immediate resistance for Bank Nifty lies in the 59,800–59,900 zone. The 59,200–59,300 support band remains critical for maintaining near-term stability. On daily charts, the RSI stands at 53.53 and is trending higher. This suggests improving momentum and gradual strengthening of bullish undertones.
Despite short-term volatility, the market continues to exhibit underlying strength. Bagadia advised traders to maintain a bullish bias. He recommended adopting a buy-on-dips strategy near key support levels. Disciplined risk management and appropriate stop-loss placements are essential to guard against deeper downside risks.
Five Breakout Stocks Recommended for Consideration
Breakout stocks are those that move past their established support or resistance levels. Such breakouts often signal that a stock may be poised for a strong price move. Amid current market conditions, Sumeet Bagadia has recommended five breakout shares for potential buying opportunities.
1. Jamna Auto Industries
Buy at: ₹133.5
Target: ₹144
Stop loss: ₹129
Jamna Auto is in a strong uptrend and has given a fresh breakout above its prior consolidation zone. The stock trades above all key Exponential Moving Averages. The 20 and 50 EMA are sloping upward, indicating strong short-term momentum. Volumes have expanded on the breakout, highlighting accumulation. As long as the stock sustains above 129, the bullish structure remains intact. This favors a move toward 144.
2. DCB Bank
Buy at: ₹184.45
Target: ₹198
Stop loss: ₹178
DCB Bank continues to trade in a broader uptrend. It is consolidating after a sharp rally. Price holds above the 20 and 50 EMA, while the overall structure remains positive despite minor pullbacks. The consolidation appears healthy with declining selling pressure. Holding above 178 keeps the trend intact. A sustained breakout could lead to an upside move toward the 198 zone.
3. CSB Bank
Buy at: ₹518
Target: ₹558
Stop loss: ₹499
CSB Bank has witnessed a strong impulsive rally. It is currently consolidating near highs, indicating strength. The stock trades well above its key moving averages, with EMAs aligned positively. Volumes surged during the breakout phase, suggesting strong institutional participation. As long as the price sustains above 499, the uptrend remains valid. It may extend toward the 558 target.
4. Bajaj Consumer Care
Buy at: ₹283
Target: ₹305
Stop loss: ₹275
Bajaj Consumer is trading in a steady uptrend. It has reclaimed key resistance levels. The stock sits comfortably above the 20, 50, and 100 EMAs, indicating improving momentum. Pullbacks are shallow and supported by lower volumes, suggesting accumulation. Sustaining above 275 keeps the bullish bias intact. There is potential for further upside toward the 305 zone.
5. Tech Mahindra
Buy at: ₹1614
Target: ₹1740
Stop loss: ₹1560
Tech Mahindra is currently in a consolidation phase. The broader trend appears sideways to mildly bullish. A decisive breakout above the falling trend line near 1,630 would confirm strength. This could lead to a fresh upside move. On a confirmed breakout, the stock may head toward 1,740. The 1,560 level acts as a crucial support and stop-loss level. Volumes should expand on the breakout to validate the move.
Disclaimer: This story serves educational purposes only. The views and recommendations presented above belong to individual analysts or broking companies, not Mint. We strongly advise investors to consult certified experts before making any investment decisions.
