Early in the week, concerns around the “Greenland Gambit” narrative and fears of a potential Trump-led tariff shock further weighed on investor confidence, keeping markets under sustained pressure.
Two stock recommendations by MarketSmith India:
Buy: Hindustan Unilever Ltd (current price: ₹2,400)
Why it’s recommended: Market leader in FMCG with a strong brand portfolio, consistent cash flows and high return ratios, a strong distribution network across urban and rural India, pricing power supported by brand strength, stable earnings visibility with a steady dividend track record, and parentage support from Unilever PLC.
Key metrics: P/E: 52.89 | 52-week high: ₹2,750 | Volume: ₹Rs 333.03 crore
Technical analysis: Reclaimed its 50-DMA
Risk factors: Premium valuation limits near-term upside, margin pressure from raw material inflation, intense competition from local and global FMCG players, slower volume growth during weak consumption cycles, and regulatory and tax changes impacting the FMCG sector.
Buy: ₹2,380-2,420
Target price: ₹2,600 in two to three months
Stop loss: ₹2,300
Buy: Bajaj Auto Ltd (current price: ₹9,400)
Why it’s recommended: Strong brand equity in motorcycles and three-wheelers, high export contribution with a wide global presence, consistently healthy margins and return on equity, a debt-free balance sheet, strong cash flows with a steady dividend track record, leadership in the premium bike segment through brands such as Pulsar, KTM, and Triumph, and a clear focus on cost efficiency and operational discipline.
Key metrics: P/E: 28.16 | 52-week high: ₹9,888 | Volume: ₹192.81 crore
Technical analysis: Reclaimed 100 DMA and forming a flat base pattern breakout
Risk factors: Cyclicality of auto demand, dependence on exports and currency fluctuations, rising competition in EV and premium segments, regulatory risks related to emission norms and safety rules, commodity price volatility in inputs such as steel and aluminium, and a relatively slower EV transition compared to some peers.
Buy at: ₹9,300-9,490
Target price: ₹10,150 in two to three months
Stop loss: ₹9,050
Nifty 50: How the benchmark index performed on 22 January
The Nifty 50 opened on a positive note at 25,344.60 and, after briefly moving higher to an intraday high of 25,347.95, witnessed sustained profit booking at higher levels. Selling pressure intensified as the session progressed, dragging the index to an intraday low of 25,025.30 before it finally settled at 25,048.65, down 0.95% for the day.
The benchmark slipped below its 200-DMA, indicating short-term technical damage. From a broader perspective, the decline reflects rising caution and distribution after recent consolidation, with market participants adopting a risk-averse stance amid weak breadth and fading momentum.
Momentum indicators indicate a clear loss of strength. The RSI has dropped to around 29, slipping into oversold territory and highlighting stretched short-term conditions, though this also raises the possibility of a technical bounce. The MACD remains firmly bearish, with the signal line below zero and the histogram expanding on the downside, confirming negative momentum and a lack of reversal signals so far.
These readings suggest continued pressure in the near term, with volatility likely to remain elevated. According to O’Neil’s methodology of market direction, the Nifty 50 is in a Downtrend. From a tactical standpoint, traders should remain selective and prioritize risk management.
With the index breaching its 200-DMA, immediate support is placed in 24,900–25,000, which is expected to provide near-term cushioning against further downside. Any deeper corrective move may attract incremental buying interest closer to 24,600. On the upside, the index is likely to remain range-bound amid elevated volatility, with near-term price action broadly confined within 24,900–25,600, as market participants await clearer directional cues from macro developments, global markets, and evolving risk sentiment.
How did the Nifty Bank perform yesterday?
The Nifty Bank opened on a positive note at 59,305.15 and, after touching an intraday high of 59,400.15, faced sustained profit booking at higher levels. Selling pressure intensified through the session, dragging the index to an intraday low of 58,346.25 before it finally closed at 58,473.10, registering a 1.23% decline.
The price action reflects short-term exhaustion after the recent up move, with the index slipping below its short-term averages. From a broader perspective, this decline appears corrective in nature rather than trend-breaking, as medium-term structures remain intact despite rising volatility and cautious sentiment among banking heavyweights.
Momentum indicators highlight weakening near-term strength. The RSI has slipped to around 39, moving below the neutral 50 mark and indicating loss of bullish momentum, though it is not yet in deeply oversold territory. The MACD remains in negative territory with the histogram expanding on the downside, confirming short-term bearish momentum and a lack of immediate reversal signals.
These indicators suggest that upside traction is currently limited and further consolidation cannot be ruled out. According to O’Neil’s methodology of market direction, Nifty Bank is in an Uptrend Under Pressure. From a tactical view, traders may adopt a selective approach until momentum stabilizes and indicator divergence improves.
On the levels front, immediate support for the Nifty Bank is placed in 57,700–57,750, which coincides with the 100-DMA and remains a crucial short-term support area. A decisive breakdown below this level could weaken sentiment further and open the possibility of a retest toward the 200-DMA near 56,600. On the upside, immediate resistance is placed near the psychological 60,000 mark, while a stronger supply zone is seen around 60,400, where selling pressure may re-emerge.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
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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.
