Stock Market Today: Markets See a Steep Correction
The markets started the week on a negative note as the Nifty-50 Index closed at 22,817.90, down 1.19%, while the S&P BSE Sensex ended 1.08% lower at 76,233.70. The decline was broad-based, with sectors like IT, metals, and pharma leading the fall. The Nifty Bank Index also slipped 0.62% to close at 48,064.65, while broader markets faced deeper corrections of up to 4%.
Trade Setup for Tuesday
The current market sentiment remains weak and volatile. Analysts advise keeping a close watch on the 23,000 level for Nifty and 76,300 for Sensex, as trading below these thresholds may signal continued bearishness.
For Bank Nifty, the 47,900 level has emerged as a key support point. If it sustains above this level, a pullback rally toward 49,000 is possible, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta.
Factors Influencing the Market
- Global Cues: Investors remain cautious ahead of the two-day U.S. Federal Open Market Committee (FOMC) meeting on January 28-29. Concerns around global market weakness and lingering trade policy uncertainties are keeping markets under pressure.
- Q3 Results: Earnings reports for the October-December quarter are expected to provide direction.
- Union Budget 2025: Investors are closely tracking announcements in the upcoming budget for economic cues.
Stocks to Buy Today
Market experts have identified some promising opportunities for traders:
Sumeet Bagadia’s Recommendations
- Blue Dart Express Ltd
- Buy at: ₹6,593.30
- Stop Loss: ₹6,362
- Target Price: ₹7,055
- Outlook: The stock has recently rebounded from a key support zone and broken out of a short-term consolidation range with increased trading volumes. A sustained move above ₹6,800 could trigger further upward momentum.
- Action Construction Equipment Ltd (ACE)
- Buy at: ₹1,246.40
- Stop Loss: ₹1,203
- Target Price: ₹1,334
- Outlook: ACE has shown a strong recovery, reversing from lower levels and approaching its 20-day EMA. A breakout above ₹1,221 indicates continued bullish momentum, with potential for further gains.
Ganesh Dongre’s Recommendations
- Mahindra & Mahindra (M&M)
- Buy at: ₹2,830
- Stop Loss: ₹2,780
- Target Price: ₹2,900
- Outlook: A bullish reversal pattern suggests the stock may retrace to ₹2,900. With a strong support level at ₹2,780, this is a favorable buying opportunity.
- Larsen & Toubro Ltd (L&T)
- Buy at: ₹3,470
- Stop Loss: ₹3,425
- Target Price: ₹3,545
- Outlook: The stock has found support at ₹3,425 and formed a reversal price action at ₹3,470, indicating a potential rally toward ₹3,545.
- InterGlobe Aviation Ltd (INDIGO)
- Buy at: ₹4,175
- Stop Loss: ₹4,120
- Target Price: ₹4,250
- Outlook: INDIGO is holding support at ₹4,120, with a bullish reversal pattern suggesting a near-term rally to ₹4,250.
What Lies Ahead
With global market volatility, Q3 earnings, and the Union Budget on the horizon, Indian equities are likely to remain under pressure in the near term. However, selective opportunities in stocks like Blue Dart, ACE, M&M, L&T, and INDIGO could offer favorable returns for traders with a disciplined approach.
