Indian equity benchmarks extended their losses for a third consecutive session on Wednesday, 7 January, creating a cautious backdrop for investors. However, market expert Ankush Bajaj has identified three stocks that present potential buying opportunities in this environment. His recommendations for 8 January focus on companies showing technical strength or consolidation breakouts.
Market Recap: Indices Decline Amid Mixed Signals
The trading session on 7 January ended with modest losses for the frontline indices. The S&P BSE Sensex dropped 102.20 points, or 0.12%, to close at 84,961.14. Similarly, the Nifty 50 declined by 37.95 points, or 0.14%, settling at 26,140.75. This marked the third straight day of decline, reflecting investor caution amid mixed global cues.
While the benchmarks struggled, the broader market showed resilience. The BSE Midcap index outperformed, gaining 0.47%, and the BSE Smallcap index edged up by 0.12%. Sectoral performance was a mixed bag. The Pharma index surged impressively by 3.93%, and the Healthcare index rose 1.96%. On the downside, the Auto index fell 1.19%, and the Oil & Gas and Infrastructure indices slipped 0.66% and 0.50%, respectively.
Stock-specific action was notable. Titan Company was among the top gainers, rising 3.93%, while IT majors like Wipro and HCL Tech also advanced. Profit-booking was seen in stocks like Cipla, Maruti Suzuki, and Power Grid Corporation.
Ankush Bajaj's Top Three Stock Picks for 8 January
Amid the consolidation, Sebi-registered research analyst Ankush Bajaj has recommended three stocks for traders and investors to consider on 8 January, based on technical analysis.
1. Titan Company Ltd
Bajaj recommends a buy on Titan, citing its sustained strength within an established uptrend. The stock is benefiting from increased buying interest in consumption-heavy sectors. Key technical indicators support a bullish view.
The Relative Strength Index (RSI) at 58 indicates healthy bullish momentum without entering overbought territory. The Moving Average Convergence Divergence (MACD) at +20 shows a strong positive crossover, reinforcing the potential for continued upward movement. Furthermore, the Average Directional Index (ADX) at 42 confirms a powerful and well-established trend.
The price action suggests the stock is hovering near the top of its short-term range, hinting at a possible breakout. The technical view maintains that as long as the stock holds above the ₹4255 level, the bullish bias remains intact, with a potential target of ₹4305. The recommended buy price is ₹4273.20, with a stop loss set at ₹4255.
2. National Aluminium Company Ltd (NALCO)
The second pick is NALCO, which is riding the broader rally in the metals sector. Bajaj notes the stock's steady trend development and supportive technical setup.
The RSI reading of 57 keeps the stock in a bullish zone, while the MACD at +1.2 maintains a clean crossover that supports the ongoing upward momentum. The ADX at 31 reflects a well-defined trend in motion, suggesting the rally has structural support, partly driven by underlying commodity strength.
The analysis suggests that if NALCO sustains above the ₹349 level, it could see a near-term rise towards ₹360. The recommended entry point is ₹352.60, with a stop loss at ₹349 and a target price of ₹360.
3. The Phoenix Mills Ltd
The third recommendation is Phoenix Mills, a real estate player that appears to be forming a base near its short-term support, indicating a potential bounce-back opportunity.
The RSI at 45 is in a neutral position, leaving ample room for upside movement. The MACD at -1 suggests the stock is emerging from a consolidation phase. While the ADX at 15 indicates a weak trend currently, any increase in trading volumes or positive sentiment could trigger fresh buying interest from these levels.
The technical view states that a sustained hold above ₹1930 could push the stock's price toward ₹1975. The recommended buy price is ₹1942, with a stop loss at ₹1930 and a target of ₹1975.
Nifty Technical Outlook and Key Levels to Watch
On the daily chart, the Nifty 50 is trading within a rising wedge pattern, a formation that often precedes a reversal. The index closed near the lower support trendline of this pattern, awaiting confirmation for the next directional move.
The index continues to hold above its key moving averages—the 20-day DMA at 26,039 and the 40-day DEMA at 25,974—which should act as immediate support. A decisive close below these levels could accelerate the downside toward the 25,750-25,850 zone. Conversely, a bounce would need to clear the resistance zone between 26,200 and 26,250 to re-establish strong bullish momentum.
Momentum indicators present a mixed picture. The daily RSI at 53.96 is neutral. The MACD remains in buy mode at +71.35 but shows slowing momentum. Options data adds a note of caution, with a higher Call Open Interest at the 26,200 strike acting as a firm resistance, while Put OI is concentrated at the 25,500 strike.
Investors are advised that all market investments carry inherent risks. The views and recommendations are those of the individual analyst. It is crucial to consult with certified financial experts and consider one's own risk profile before making any investment decisions.
