Despite a sluggish end to Tuesday's session, the Nifty index closed at 23,707.90, up just 0.39% (+91.85 points) at 23,707.90 level.

During an uneventful trading session, the Nifty Bank index climbed by 0.56% (+280.15 points) to close at 50,202.15. Indicating less nervousness among traders, the India VIX, a gauge of market volatility, fell 6.33% to 14.66. Since the India VIX continuously maintains its level below the crucial 15, the general mood of the market is still cautiously positive. Traders should monitor worldwide events, especially those pertaining to the HMPV virus and the forthcoming Q3 results.

Nifty Outlook Today

"Nifty's movement indicates a sideways to mildly bearish bias as it struggles to sustain above the 23,800-23,900 range. The psychological level of 24,000 remains a crucial pivot point. Options data reflects a sentiment shift, with notable put unwinding hinting at diminished confidence in a sustaining the upside. The resistance zone between 23,800-23,900, aligns with the 10-day and 20-day EMAs, remains a formidable barrier. Meanwhile, the support area of 23,600-23,550, fortified by robust put writing and historical demand, offers a reliable base. A breakout above 24,000 could trigger aggressive short-covering, potentially driving the index toward 24,500. Until the Nifty decisively breaches its resistance or sustains levels above 23,900, a "sell on rise" approach is advisable as consistent selling pressure curbs upticks," said Dhupesh Dhameja, Derivatives Analyst, SAMCO Securities.

Bank Nifty Outlook Today

"Nifty Bank index exhibits a sideways to mildly bearish bias, unable to sustain a breakout above the 51,000-51,200 range. The psychological level of 51,000 remains pivotal for future direction. Options data suggests a weakening confidence in prolonged upside momentum, with notable put unwinding reflecting a cautious approach. The resistance zone between 50,500 and 51,000, aligned with the 200-day EMA, acts as a significant hurdle, while the 50,000-49,600 region, supported by strong put writing and historical demand, provides a reliable support base. A decisive breakout above 51,000 could trigger aggressive short-covering, propelling the index toward 51,700. Until the index breaches its resistance or sustains above 50,700, a "sell on rallies" strategy remains prudent, as upward moves continue to face selling pressure," commented Dhupesh Dhameja.

Stocks To Buy Today

On Wednesday, January 8, Choice Broking's executive director Sumeet Bagadia recommended buying two stocks following the formation of a modest bullish candle by the Nifty, which is a sign of a bullish harami pattern.

ONGC

Buy ONGC in Cash @ 263.5, Stop-loss @ 254, Target @ 283

ONGC is currently trading at Rs 263.5, exhibiting strong bullish momentum. The stock has recently broken out of a falling trendline pattern on the weekly timeframe, typically signaling a potential bullish reversal from a key support zone. This breakout is reinforced by a notable increase in trading volume, indicating robust buying interest. A critical resistance level to watch is Rs 270-sustained trading above this level could serve as an ideal entry point for long positions.

The Relative Strength Index (RSI) stands at 61.52 and is trending upward, suggesting a healthy uptrend with the potential for further growth. Additionally, ONGC is trading comfortably above its 20-day and 50-day Exponential Moving Averages (EMAs) and is approaching its 200-day EMA, further affirming the bullish trend.

Traders may consider entering at the current price of Rs 263.5, with a stop-loss set at Rs 254 to manage risk and a target price of Rs 283. While the technical indicators point to a favorable setup for potential gains, it is prudent to remain mindful of short-term market volatility.

UPL

Buy UPL in Cash @ 543.6, Stop-loss @ 522, Target @ 581

UPL is currently trading at Rs 543.6, showing bullish momentum and indicating a upcoming breakout. The stock appears set to break out from a decending triangle pattern on the weekly timeframe chart, This breakout is accompanied by an increase in trading volumes, reflecting heightened buying interest among investors. If UPL can sustain levels above Rs 556, it may advance toward a target of Rs 581.

The Relative Strength Index (RSI) stands at 52.03 and is trending upward, suggesting an increase in buying momentum. Additionally, the stock is trading above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), further affirming the ongoing positive trend.

In summary, the favorable technical setup, combined with indicators such as RSI and moving averages, makes a buy at the current market price of Rs 543.6 compelling. Setting a stop loss at Rs 522 and a target of Rs 581 aligns well with the stock's bullish trajectory and presents an opportunity for potential gains.