Best Stocks To Buy Today: Reliance Industries, Asian Paints Among Top 5 Picks For January 3, 2025

Best Stocks To Buy Today: The stock market decline on Friday follows a robust rally in the previous session on Thursday, which saw the leading indices register their best gains in six weeks

Best Stocks To Buy Today: Asian Paints has broken above a falling window, a strong resistance level, indicating a breakout

Source : ABPLIVE AI

Indian benchmark indices, Nifty and Sensex opened on a weak note on Friday, ending a two-day winning streak as IT and private bank stocks dragged them lower. This decline followed a robust rally in the previous session on Thursday, which saw the leading indices register their best gains in six weeks. The pullback also coincided with negative global cues, as major US stock indices closed lower, reversing earlier gains.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "The uncanny ability of the market to surprise was evident in yesterday’s massive 445 point rally in Nifty. Even though FII buying helped in the rally, at Rs 1506 crores net buying it was not good enough to trigger such a massive 1.8 per cent rally in Nifty. Short covering in certain beaten down fundamentally strong stocks like the Bajaj Twins and sharp spurts in auto stocks assisted by better-than-expected December sales numbers have contributed to the rally. 

Stock Recommendations By Kunal Kamble, Senior Technical Research Analyst At Bonanza 

Reliance Industries

Reliance Industries has closed above its 8-day high, signalling a short-term breakout. The surge in volume during this breakout highlights strong buyer interest at the current level. Furthermore, the RSI is trending upward, reinforcing the positive price action. Based on this technical setup, a long position can be initiated in Reliance Industries as long as it stays above Rs 1210, with a potential target of Rs 1300.

LTIM

LTIM is displaying a higher high (HH) and higher low (HL) pattern, indicating bullish momentum. The rise in volume confirms strong buyer interest, and the RSI is also trending upward, supporting the positive price action. Based on this technical pattern, a long position can be initiated with a stop loss at Rs 5600 and a target price of Rs 6050.

Ambuja Cement

Ambuja Cement has formed a Harami Pattern and closed above it, signalling a short-term reversal. The increased volume reflects buyers’ interest in accumulating the stock at current levels. Additionally, the price is trading above the Ichimoku cloud, indicating bullish sentiment. Based on this setup, a long position can be initiated with a stop loss at Rs 530 and an upside target of Rs 590.

Asian Paints

Asian Paints has broken above a falling window, a strong resistance level, indicating a breakout. The increase in volume reflects strong buyer interest, and the RSI has emerged from a double-bottom pattern, further validating the bullish price action. Based on this setup, a long position can be initiated as long as the price stays above Rs 2275, with an upward move expected towards Rs 2450- Rs 2500.

SJVN

SJVN displayed a runway gap two days ago, coupled with increased volume, signalling strong buyer interest. In today’s session, although sellers attempted to push the price lower, buyers regained control and closed the price above the previous low, demonstrating their willingness to accumulate on dips. Additionally, the RSI is trending upward, supporting the positive price action. Based on this setup, a long position can be initiated as long as the price holds above Rs 104, with a potential move towards Rs 119.

Disclaimer: Investing in the stock market involves financial risks. Please invest responsibly and only after thorough research and careful consideration. Reader discretion is advised.