Stocks to buy: Raja Venkatraman recommends three stocks for today—16 January
Subscribe to enjoy similar stories. On 15 January, the market continued to struggle, despite being in a heavily oversold position. Recent upticks are viewed as technical recoveries rather than a true shift in fundamentals.
Earnings for Q3 are projected to be lacklustre, weaker than the prior quarter, which further fuels the bearish sentiment. Regarding Foreign institutional investor (FII) activity, there is a persistent trend of outflows as FIIs focus on liquidity generation despite significant corrections in large-cap and PSU stocks. This selling pressure is expected to persist until uncertainties diminish, potentially leading to additional market declines.
The Nifty 50 remained subdued, and the ability to stage a good recovery remained distant. The rally-sell approach is being adopted, and it continues to hamper recovery attempts. With the absence of encouraging triggers, we need to tread carefully with the Nifty as it tries to stabilize the trends ahead.
As a rebound is in progress, the supports are getting revised to 23,200, with the Max Pain Point at 23,300, highlighting the possibility of a rebound. The levels around 23,500 continue to curb any signs of recovery. A move above this area is needed, hence, it would be a testing phase for the trends ahead.
The heavy call writing at 23,300 would be the doorway that needs to be broken for further upside. The Put Call Ratio (PCR) has moved slightly ahead above 1 in the Bank Nifty, highlighting that an attempt is being made to produce a rebound by the bullish camp. The lack of clarity continues to haunt the market trends.
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