Chartist Talk: Avoid Vodafone Idea; Escorts Kubota, Glenmark set for breakout, says Milan Vaishnav

Milan Vaishnav is the Founder of Gemstone Equity Research & Advisory Services

• Going by the classical price measurement implications, Bank Nifty may test 61,000-61,200 levels this month, said Milan Vaishnav.

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Milan Vaishnav, MSTA, Founder of Gemstone Equity Research & Advisory Services, is betting on Glenmark Pharma and Escorts Kubota for the week ahead.

“After the breakout, Glenmark consolidated for some time and now appears poised to resume its uptrend, while Escorts Kubota looks on the verge of a breakout,” he said in an interview with Moneycontrol.

According to Vaishnav, investors should avoid Vodafone Idea and use any upward moves to exit the stock. “If investors choose to remain invested, exposure should be limited to no more than 5 percent of the total portfolio,” he added.

Do you think the Nifty has gained sufficient strength during the recent consolidation phase that broke out on Friday? Could this consolidation push the Nifty beyond the 28,000 mark by the end of January?

I think this would be an incorrect way to approach the markets. From a technical perspective, this is the time that we must stay "reactive" and not get "predictive" on the markets. The Nifty has broken out once again from the 500-point trading range that it had created between the 25,700-26,200 zone. When it first formed an incremental high on December 1, 2025, it could not make a trending move higher.

At the time of the previous attempt to break out, the market breadth lagged as the broader markets were far from their previous high. This time, the situation remains the same; the only difference is that the breadth is improving. So, we can certainly expect Nifty to inch higher so long as it stays above 26,000 level, however, I will not put a 28,000 mark on it as it is less likely.

Which two stocks are you buying for the coming week?

I would be looking at Glenmark Pharma and Escorts. Glenmark has broken out from a falling channel. Following its breakout, the stock consolidated for a while and now looks set to resume its upmove.

Escorts Kubota has been in a sideways trading range and broad consolidation for several weeks now. While trading above all key moving averages, it now looks on the cusp of a breakout.

Do you see the Bank Nifty reaching 62,000 in January before entering another phase of consolidation?

Just in lines with Nifty, I would stay "reactive" here, rather than getting "predictive". If the upmove in the Nifty continues, Bank Nifty may relatively outperform. Going by the classical price measurement implications, Bank Nifty may test 61,000-61,200 levels this month.

Has Vodafone Idea’s upward journey come to an end, in your view?

It is not possible to analyze Vodafone Idea purely from a technical perspective. The main drivers of its price over past many quarters is the developments on AGR dues and the rulings from the court that have come from time to time. The stock has rising over the past quarter despite negative divergences on the lead indicators.

In my opinion, investors should avoid this stock and use all up moves to exit the stock. If they wish to stay invested, not more than 5 percent of the total portfolio should be allocated to such stocks.

Will the consolidation breakout propel Torrent Power and IDBI Bank beyond the Rs 1,500 and Rs 150 levels, respectively, during the current month?

Torrent Power has the possibility to test Rs. 1500. For IDBI Bank, we can place price targets of around Rs. 125 to 130. However, with the kind of rise it saw on Friday, some consolidation cannot be ruled out.

Do you expect the Nifty Midcap index to outperform the Nifty Smallcap 100 index going forward?

Nifty Midcap 100 Index is on the verge of a breakout. The Relative Strength (RS) line against the broader Nifty 500 Index is about to break out following six months of consolidation. If this happens, that may lead to improved market breadth, and this may see the Nifty Midcap Index outperforming the Nifty.

SmallCap, on the other hand, may lag for some time. For this index to start performing, it will need to move past the 18,500 level. Unless this level is taken out, we cannot expect this space to perform; it may relatively underperform the broader as well as the frontline Indices.

Do you see the Nifty Metal index continuing its strong performance in 2026?

Yes, this may continue. However, even on the longer-term charts, some consolidation going ahead in the coming months can be expected.