Stocks to buy or sell: Osho Krishan of Angel One suggests buying Bharti Airtel, RIL today – 9 January 2025

Stock Market News: The domestic benchmark indices, Sensex and Nifty 50, fell in early trading on Thursday due to ongoing outflows from foreign funds, as investors remained cautious ahead of the upcoming earnings season.

TCS is set to begin the results for the December quarter on today. The 30-share BSE benchmark Sensex declined by 284.12 points to reach 77,864.37 in early trading. Meanwhile, the Nifty 50 decreased by 86.8 points to 23,602.15.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned that so far in January, foreign institutional investors (FIIs) have sold equities worth ₹10419 crores. With the dollar index standing at 109 and the yield on 10-year bonds at 4.67%, it is anticipated that FIIs will persist with their selling approach, putting downward pressure on the market in the short term.

As the Q3 earnings season kicks off today, the market will respond to these results. The performance of TCS will provide insights into the outlook for the IT sector. The robustness of the US economy and the depreciation of the rupee will act as positive factors for the IT sector.

Nifty 50 Outlook by Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One

The decline in mid-cap and small-cap stocks negatively affected overall market sentiment, causing the benchmark index to fall below Monday’s low of 23,550 and test 23,500 levels. Fortunately for the bulls, the second half of the trading session provided some relief, as prices recovered most of the morning losses. The session ultimately closed on a muted note after a choppy day of trading.

The narrowing price range indicates the formation of a ‘Symmetrical Triangle’ pattern, with prices converging toward the apex. This suggests a potential breakout that could determine the next major directional move for the benchmark index. Looking ahead, a break below the low of around 23,500 may trigger renewed downward momentum, pushing the index toward levels between 23,200 and 23,000 in the near term.

On the upside, the market is confronted with immediate resistance around the 200-DSMA at levels between 23,900 and 24,000. A bullish reversal would only be signaled by a close above 24,200. Traders should closely monitor these levels during the weekly expiry and adjust their trades accordingly. As we enter the earnings season, traders are encouraged to identify promising stock-specific opportunities while maintaining a selective approach to maximize their potential for success.

Stocks To Buy on Thursday – Osho Krishan

On stocks to buy on Thursday, Osho Krishan recommended two stocks – Bharti Airtel Ltd, and Reliance Industries Ltd (RIL).

Bharti Airtel Ltd

Bharti Airtel is currently experiencing a significant consolidation phase, characterized by its price movement oscillating between the 20-DEMA and the 100-day DEMA on daily charts. This narrowing range suggests that the stock is setting the stage for a potential price breakout in the near term. Additionally, various technical indicators are showing favorable signs, which further supports the likelihood of an upward price movement. If this bullish momentum continues, we could expect the stock to propel northwards, potentially reaching new resistance levels as market conditions evolve.

Hence, we recommend to BUY Bharti Airtel around ₹1,600-1,590, keeping a stop loss of ₹1,560 for a potential Target of ₹1,655-1,660.

Reliance Industries Ltd

Reliance Industries is demonstrating notable strength as it rebounds from multi-week lows, effectively supporting the broader markets during this challenging scenario. From a technical standpoint, the recent price action, along with key technical indicators, is revealing a positive divergence. This is an important signal that suggests a forthcoming bullish trend for the stock. Additionally, the recent momentum has been favorable for buyers, as the price has managed to move above the 21-DEMA after a long haul.

Overall, the combination of these technical factors indicates a strong possibility of a countertrend rally. This potential shift could provide new opportunities to capitalize on upward price movements.

Hence, we recommend to BUY Reliance around ₹1,250, keeping a stop loss of ₹1,200 for a potential Target of ₹1,330-1,350.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.