Stocks to buy: Top stock recommendations for January 23, 2025

Stock market recommendations: According to Aakash K Hindocha, Deputy Vice President - WM Research, Nuvama Professional Clients Group, Bajaj Finserv, Muthoot Finance, and ABDL are the top stock picks for today. Here’s his view on Nifty, Bank Nifty and the top stock picks for January 23, 2025:

Index View: Nifty

Pressure on Nifty eased out in the last hour of trade after it failed to break its previous day’s low despite a selloff in the broader market. After closing at seven month low on Tuesday - Nifty has shown exhaustion of sellers near the 23k mark and a range bound trade between 23000 – 23300 can be seen for the rest of this week. A huge medium term support is being developed near 22800 – 22650 wherein a five year upward trendline support has emerged on weekly charts.

Bank Nifty

Index recovered close to 700 points from its intraday lows as an index heavyweight reported better than expected numbers. Trading above 48850 on spot levels would negate the short term bearish flag formation on hourly charts of Bank Nifty. Support has now got developed at 48000 levels on the index while a round of short covering could be seen above 48850 for 500-700 point upside.

BAJAJFINSV (BUY)LCP: 1743.30SL: 1690TGT: 1821

An unusual buying interest is seen in Bajaj Finserv from the start of this calendar year wherein the stock is up 11% so far in a matter of 3 weeks compared to a 2-4% downtick on Nifty and Bank Nifty. Bajaj Finserv has claimed a 10 week high closing on Wednesday along with a bullish flag breakout on daily charts. This can allow the ongoing inflow momentum to continue for another 5-7% upside.

MUTHOOTFIN (BUY):

LCP: 2197.45SL: 2130TGT: 2310

Another stock exhibiting relative strength to the peer group and overall market is less than 5% away to reclaim its all-time highs. A fresh bullish flag breakout is seen on daily charts of the scrip which now opens doors to fresh all time high on charts. Given the tailwind expected in this sector ahead of the budget due next week, charts suggest a reclamation of new all-time high in the next 8-10 trading days.

ABDL (BUY):LCP: 393SL: 380TGT: 426

Stock has been outperforming broader markets as well as its peers for the past 8 weeks now, with Nifty and broader indices remaining at the same level seen in end of November 2024, the stock has seen a rise of +25% from its level seen in end of November 2024 signifying its relative strength to peer group and overall market. Currently just below 385 odd levels, the stock has taken support multiple times in the past 4-5 weeks now and the same is likely to hold going forward. A quick 8-10% reversal rally cannot be ruled out from this set up on charts.

Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.

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