Market Expert Ankush Bajaj Recommends Three Stocks for January 19
Market analyst Ankush Bajaj has identified three stocks that investors should consider buying on Monday, January 19. His recommendations come after the Indian equity market closed with modest gains on Friday.
The Nifty 50 index ended at 25,694.35, rising by 28.75 points or 0.11%. The Sensex also moved higher, gaining approximately 0.23% to finish near 83,570.
Tech Mahindra Ltd: Bullish Breakout Confirmed
Ankush Bajaj recommends buying Tech Mahindra Ltd. The stock has confirmed a bullish rectangle breakout around the ₹1,650 level. This signals a clear shift from consolidation to trend continuation.
The breakout receives support from improving momentum and strong participation. Key technical indicators show positive signs.
- RSI (14-day): 65 – This reflects healthy bullish strength without entering overbought territory.
- MACD (12,26): +16 – A bullish crossover confirms upward momentum.
- ADX (14): 23 – This indicates a strengthening trend, validating the breakout structure.
From a technical perspective, sustaining above the ₹1,650 breakout level keeps the bullish structure intact. It opens the door for an upside move toward ₹1,740 in the near term.
Risk factors: The stock remains sensitive to global IT spending trends, US tech sentiment, and currency volatility.
Buy at: ₹1,670.50
Target price: ₹1,740
Stop loss: ₹1,640
Bharat Petroleum Corporation Ltd: Reversal Pattern Breakout
Bajaj suggests buying Bharat Petroleum Corporation Ltd. The stock has delivered a bullish breakout from a falling wedge pattern on the hourly chart. This represents a classic reversal setup.
Technical indicators support this breakout with improving momentum.
- RSI (hourly): 60 – This signals bullish momentum building.
- MACD (12,26): +1 – A positive crossover supports the breakout.
- ADX (14): 23 – The trend is gaining strength, increasing probability of follow-through buying.
Price action above the upper channel reflects growing buying interest. Holding above ₹359 keeps the breakout valid and can push the stock toward ₹372 in the short term.
Risk factors: The stock remains vulnerable to crude oil price volatility, refining margin fluctuations, and government policy interventions.
Buy at: ₹363.20
Target price: ₹372
Stop loss: ₹359
State Bank of India: Exceptional Banking Strength
The third recommendation is State Bank of India. SBI displays exceptional strength within the banking space, supported by strong momentum and trend confirmation.
Technical indicators highlight powerful bullish characteristics.
- RSI (14-day): 74 – This shows strong bullish momentum, typical of trending stocks.
- MACD (12,26): +17 – Bullish continuation confirms sustained buying interest.
- ADX (14): 40 – This reflects a well-established and strong trend structure.
Price action continues to remain firmly in control of bulls. As long as the stock sustains above the ₹1,020–₹1,025 zone, the bullish structure remains intact with scope for further upside.
Risk factors: The stock is sensitive to interest-rate expectations, credit growth data, and broader financial sector sentiment.
Buy at: ₹1,042.30
Target price: ₹1,058
Stop loss: ₹1,035
Market Wrap: January 16 Session
Friday's upside was driven largely by a strong rebound in information technology stocks. This followed better-than-expected December quarter earnings from a key large-cap IT major.
Supportive global cues, including gains in US tech shares and strength in select Asian markets, further underpinned sentiment. However, persistent foreign institutional selling and worries around crude and global growth capped the overall move.
Within the Nifty basket, IT names dominated the gainers' list. Infosys surged about 5.6%, emerging as the top performer. Tech Mahindra rallied roughly 5.3%, while Wipro advanced close to 2.5%. HCL Tech gained around 2.4%, reflecting renewed appetite for export-oriented software stocks.
On the losing side, select financials and defensives weighed on the index. A key diversified financial player slipped over 3%, Jio Financial Services fell about 3.1%, Cipla declined nearly 2.5%, and Hindalco shed roughly 2.4%.
Sectorally, the Nifty IT index was the clear outperformer, jumping over 3% on broad-based buying. PSU banks also fared well, with the Nifty PSU Bank index gaining a little over 1%.
In contrast, the Nifty Pharma index dropped more than 1% amid profit booking. The Nifty Consumer Durables index slipped around 1.1% as traders rotated out of consumption names.
Nifty Technical View: January 16
The Nifty 50 ended Friday's session marginally higher at 25,694.35. However, the broader technical picture continues to reflect caution rather than strength.
Despite the positive close, the index remains under pressure after the recent corrective phase. The recovery so far appears more like a pause than a decisive reversal.
On the daily chart, Nifty is still trading below its key short-term averages. The 20-day DMA is placed at 25,990 and the 40-day DEMA at 25,912. Both remain well above the current closing level.
Daily RSI has slipped to around 40, hovering near oversold territory. This reflects weak momentum and lack of strong buying interest. The MACD on the daily timeframe remains negative at –57, confirming broader bearish trends.
However, the index holds above the 20-HMA at 25,782 and the 40-HEMA at 25,669. This suggests the presence of a near-term base and limits immediate downside risk.
From an intraday perspective, momentum remains subdued. The hourly RSI stands near 45, pointing to neutral-to-weak short-term strength. The hourly MACD at –21 continues to stay in negative territory.
Unless the index manages to build follow-through buying above the 25,800 zone, the upside is likely to remain capped in the near term.
Derivatives data reinforces this cautious to bearish bias. Total Call open interest stands significantly higher at 20.30 crore compared to Put open interest of 13.23 crore. This results in a negative PE-CE differential of –7.07 crore.
Fresh positions also favour the bears. Call OI rose sharply by 5.79 crore against a 3.37 crore addition on the Put side, keeping the OI change trend bearish.
The 26,000 strike continues to act as a major resistance with the highest Call OI. The 25,900 strike has seen notable fresh call additions. On the downside, the 25,700 strike holds the maximum Put OI and the highest Put OI addition.
Overall, while Nifty has managed to close slightly in the green, the technical and derivatives setup suggests the index remains in a corrective to consolidation phase. As long as it stays below 25,900–26,000, rallies are likely to face selling pressure.
Immediate support lies near 25,700. A break below this could reopen downside toward 25,500. For a more sustainable recovery, Nifty will need to decisively reclaim the 26,000 mark with improving momentum and broader participation.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441. Investments in securities are subject to market risks. Read all related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
