Stocks to buy or sell: Sagar Doshi of Nuvama suggests IndiGo, Ambuja Cements, Coromandel today - 29 January 2025

Stock Market today: The domestic benchmark indices, Nifty 50 and Sensex, opened on a positive note on Wednesday, buoyed by gains in the information technology sector. Investors are keeping a close eye on the US Federal Reserve, anticipating insights on interest rates later in the day.

Sensex climbed 355.87 points to 76,257.28 in early trade; Nifty 50 was up 92.8 points to 23,050.05.

Technology stocks have driven gains across other Asian markets, following a strong performance in Wall Street equities overnight. This surge comes as concerns over a potential low-cost Chinese AI competitor have diminished. The Fed is widely expected to maintain its current benchmark policy rate, but market participants are keen to understand the central bank's outlook on future rate movements, particularly in light of recent calls for rate cuts from President Donald Trump.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has indicated that the market recovery observed yesterday may continue, supported by resilience in fairly priced financial stocks. However, he cautioned that a significant rally is unlikely, as Foreign Institutional Investors (FIIs) are expected to sell at higher levels.

The market is currently focused on positive signals from the upcoming Budget. Furthermore, the Federal Reserve's decision today is not expected to impact the market significantly, as no changes in policy are anticipated from this meeting.

Nifty 50 Outlook by Sagar Doshi, Senior Vice President- Research, Nuvama Professional Clients Group

Nifty 50

Nifty 50 has been reeling under selling pressure from the start of this calendar month and the index has cooled off nearly 1,500 points from its high made at the start of January 2025. After the breakdown of bearish cup and handle breakdown seen early last week. Nifty 50 has remained open for 22,800 / 22,650 on downside of which 22,800 has been tested once. On the higher side short covering is unlikely to commence unless a close above 23,000 is not seen. A 5-year upward sloping trendline coincides the index level at 22,650 odd mark and hence the range of 22,650 – 22,800 could be seen as follow up target downside which could act as support for the ongoing sell off in Nifty 50, while gets negated on closing above 23,000 as a bunch of events have been lined up for the next 10 trading days.

Bank Nifty

After completing its bearish flag breakdown targets on hourly charts with a new swing low, Bank Nifty has been finding buyers interest due to macro-economic action by the central bank aiming at infusing liquidity into the system. The index is since outperforming Nifty 50 from the start of this week and is expected to do so for the balance of this week. With the index expected to outperform the ongoing short covering on Bank Nifty is likely to continue taking the index higher towards 50,500+ by the end of extended trading this week. 48,450 is likely to act as support for the expected upmove on this index.

Stocks To Buy or Sell on Wednesday- Sagar Doshi

On stocks to buy or Sell on Wednesday, Sagar Doshi of Nuvama recommended three stocks - InterGlobe Aviation Ltd (IndiGo), Ambuja Cements Ltd, and Coromandel International Ltd.

InterGlobe Aviation Ltd (IndiGo) (BUY):

LCP: ₹4,282.50

SL: ₹4,140

TGT: ₹4,550

Higher low formation on daily charts, with stronger price action aiming to reclaim back above the 200 DMA. Once this is crossed at ₹4,340 an active momentum is likely to act as a tailwind for the stock.

Ambuja Cements Ltd (BUY):

LCP: ₹543.15

SL: ₹526

TGT: ₹570

Daily charts had given a bullish flag breakout early last week, the same breakout trendline has now been retested follow by a bullish bar formation. A follow up move in the direction northwards is likely to play out on Ambuja Cements.

Coromandel International Ltd (SELL):

LCP: ₹1,713.45

SL: ₹1,765

TGT: ₹1,610

Charts of Coromandel have been under pressure due to a bearish breakdown seen early last week. Charts have already completed its initial target of ₹1,715 while a close below the same has now opened up for a follow on target of ₹1,610 on daily charts.

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