Stocks to buy or sell: The Indian stock market suffered significant losses on Thursday, January 8, with the benchmark Sensex suffering its biggest single-day fall in over four months and the Nifty 50 falling below 25,900. The indices extended their losing streak for the fourth consecutive session. The Sensex has plunged 1,581 points, or 1.84%, while the Nifty 50 has declined 1.72% in the last four sessions.
Concerns over the Russia sanctions bill, geopolitical uncertainties, caution ahead of the Q3 results and relentless foreign capital outflow are the main triggers behind the downtrend in the Indian stock market.
“Market sentiment deteriorated amid heightened geopolitical tensions and global trade-related concerns, which weighed on overall risk appetite. Continued foreign institutional selling, coupled with weakness in the rupee, further added to the negative bias,” said Ajit Mishra, SVP of Research at Religare Broking.
Mishra pointed out the Nifty 50 breached the lower band of its rising channel and retested the crucial support zone around the previous swing low near 25,880. Sustained trading below this level may drag the index towards the 25,600–25,700 zone.
On the upside, Mishra said the earlier support at the short-term 20-day DEMA, placed around 26,050, may act as an immediate hurdle, followed by a stronger resistance near 26,300.
“Participants are advised to maintain strict risk management in existing short-term positions amid heightened volatility and wait for clearer directional cues,” said Mishra.
Stock picks for the short term
Bharat Electronics (BEL) | Last traded price (LTP): 415.65 | Buy | Target price: 444 | Stop loss: 400
Mishra pointed out that Bharat Electronics has signaled a positive shift in momentum with a decisive breakout from a downward-sloping trendline, while continuing to trade comfortably above its rising 200-day EMA.
This alignment underscores the resilience of the broader bullish structure despite recent volatility.
The breakout suggests the end of the corrective phase and opens the door for a resumption of the primary uptrend.
Volume expansion near the breakout adds credibility to the move.
“As long as prices sustain above the breakout zone and the 200-day EMA, the technical outlook remains favourable,” said Mishra.
Tata Consumer Products | LTP: 1,197.40 | Buy | Target price: 1,290 | Stop loss: 1,140
Mishra said that Tata Consumer has demonstrated steady outperformance within the FMCG space, marked by a gradual upward trend, with declines being absorbed effectively.
After breaking out from a running cup and handle formation—a classic trend continuation pattern—the stock has maintained a positive bias.
It has since formed an elevated base above the pattern’s neckline, indicating healthy accumulation and laying the groundwork for a potential upside move.
Additionally, the stock is trading above its key moving averages, which are positively aligned, reinforcing the strength of the ongoing uptrend.
“Given the constructive price structure, accumulation may be considered for a potential move toward fresh all-time highs,” said Mishra.
GAIL (India) | LTP: 163.30 | Sell Futures | Target price: 154 | Stop loss: 168
Mishra highlighted that Gail reflects a weakened intermediate trend, with prices trading below the downward-sloping 20-week EMA, which is acting as a dynamic resistance.
He said that the stock has broken down from a sideways consolidation range, indicating a loss of momentum following a prolonged corrective phase.
“Volumes remain subdued, highlighting the absence of aggressive buying interest at current levels. This price behavior suggests that bears are regaining control of the trend,” said Mishra.
“Given the prevailing technical structure, the bias remains negative, and the ongoing downtrend is likely to extend in the coming sessions. Traders looking for short opportunities may consider GAIL futures at the defined levels,” Mishra said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
