Vinay Rajani of HDFC Securities suggests buying these stocks on January 22

During the weekly expiry session of the Sensex, the index experienced significant intraday volatility. Ultimately, the bears took control as the Nifty plummeted by 320 points, or 1.37 per cent, closing at 23,024. The Nifty was unable to exceed the early morning high of 23,426, allowing the bears to remain dominant. It finished at its lowest level in the current downswing, which began from the all-time high of 26,277. The Nifty has now seen a decline of over 13 per cent from that all-time high.

 

Additionally, the Nifty formed a bearish engulfing candlestick pattern on the daily chart, which encompasses the entire movement of the last six trading sessions. This suggests a potential resumption of the primary downtrend, possibly dragging the Nifty towards the next support level at 22,800. On the upside, resistance may be encountered at 23,200.

 

Buy IOC (Rs 131) | Target: Rs 145 | Stop loss: Rs 121

 

IOC stock price has formed a bullish ‘hammer’ candlestick pattern on the weekly chart. Stock price has surpassed 5 and 10 DMA resistance. Indicators and oscillators have turned bullish on daily time frames.

 

Buy IRCTC (Rs 782): | Target Rs 855 | Stop loss: Rs 743

 

IRCTC stock price has formed a bullish ‘Dragonfly Doji’ candlestick pattern on the weekly chart, which indicates probable bullish trend reversal. Stock price has surpassed 5 and 10 DMA resistance. Indicators and oscillators have turned bullish on daily time frame.

 

(Disclaimer: Vinay Rajani, CMT is a senior technical and derivative analyst at HDFC securities. Views expressed are his own.)