The Indian stock market closed with modest gains on Friday, January 16. The Nifty 50 index added 29 points, reaching 25,694. This represented a rise of 0.11 percent. Information technology and banking stocks led the advance during the trading session.
Market Sentiment Remains Cautious
Ajit Mishra, Senior Vice President of Research at Religare Broking, shared his insights. He noted that Infosys provided an earnings upgrade. This development helped improve risk appetite among investors. It also brought some stability after recent market uncertainty.
However, Mishra highlighted several concerns. A weaker rupee and ongoing global trade issues remained on the radar for market participants. These factors continue to create headwinds for the broader market.
Mishra pointed to a key technical level. The ongoing tussle around the 100-day exponential moving average near the 25,600 zone is making traders cautious. This medium-term moving average is acting as a crucial resistance point.
Focus Shifts to Key Earnings
The market expert expects important cues from major companies. Earnings announcements from Reliance Industries, HDFC Bank, and ICICI Bank will influence early trade on Monday. These results could determine the next directional move for the market.
Mishra advised participants to maintain a selective approach. He recommended focusing on stock-specific opportunities. Sectors showing relative strength include information technology, financials, and metals. He emphasized disciplined risk management in the current volatile environment.
Three Stock Picks for Short-Term Gains
HCL Technologies
Last Traded Price: ₹1,698
Recommendation: Buy
Target Price: ₹1,950
Stop Loss: ₹1,575
Information technology stocks are showing early signs of revival. HCL Technologies emerges as one of the stronger performers among large-cap IT names. The stock has completed its corrective phase.
It displays resilience by holding above its 20- and 50-week exponential moving averages. This action reflects a healthy underlying trend. Strong buying interest appears at lower levels.
Mishra observed a fresh buying pivot after consolidation. The stock broke out of a well-defined base formation. This price action suggests accumulation by market participants ahead of the next upward leg.
The absence of sharp drawdowns highlights stability. Improving sectoral sentiment and a constructive chart setup support the stock. HCL Technologies offers a favourable risk–reward profile at current levels.
Punjab National Bank
Last Traded Price: ₹132.36
Recommendation: Buy
Target Price: ₹149
Stop Loss: ₹124
The PSU Bank index continues to outperform the broader market. It recently scaled a fresh all-time high, indicating sustained sectoral strength. Punjab National Bank maintains its positive bias and trades firmly.
After breaking out of its earlier corrective phase, the stock trends higher. It holds above its rising 20-week exponential moving average. A healthy base-on-base structure is forming.
The stock registered a fresh breakout from an elevated base. This pattern resembles a cup-and-handle formation. It signals continuation of the prevailing uptrend. Expanding volumes support the breakout, adding credibility to the move.
Given the robust sectoral backdrop and supportive technical structure, PNB appears well-positioned. It may surpass its May 2024 high and extend its upward move. Traders can consider initiating long positions, including those who missed earlier opportunities.
Tata Steel
Last Traded Price: ₹188.21
Recommendation: Buy
Target Price: ₹212
Stop Loss: ₹177
Metal stocks have been among the top-performing sectors in recent months. They continue to exhibit strong momentum. While certain pockets of the sector are now in overbought territory, select stocks within the steel space offer an attractive risk–reward setup.
Tata Steel recently delivered a decisive breakout. It marked a fresh all-time high. The stock broke out of a trend-continuation pattern. This pattern developed during its prolonged corrective-to-recovery phase over the past one-and-a-half years.
This breakout, within the broader uptrend, signals the beginning of a new upward leg. A favourable sectoral environment and constructive technical structure support the stock. Tata Steel presents a renewed buying opportunity for traders looking to participate in the ongoing momentum.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert. We advise investors to consult with certified experts before making any investment decisions. Market conditions can change rapidly and circumstances may vary.
