Trade Spotlight: How should you trade Biocon, Maruti Suzuki, Navin Fluorine, Gujarat Apollo, Bharat Dynamics, and others on January 20?

Since September 2024, Bharat Dynamics has been consolidating within the Rs 1,300-900 levels, signaling substantial accumulation. This consolidation has formed an "Inverse Head & Shoulders" pattern, a trend reversal with a neckline value of Rs 1,300. With the current close, the stock is poised for a breakout from this formation. Hence, any sustainable rally above the Rs 1,300 level may lead momentum towards the Rs 1,550 level. The stock is well-placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with the price rise, reaffirming the bullish trend. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 1,450-1,550 and a downside support zone of Rs 1,200-1,140.

Strategy: Buy

Target: Rs 1,450, Rs 1,550

Stop-Loss: Rs 1,200

Gujarat Apollo Industries | CMP: Rs 424.75

Gujarat Apollo Industries has confirmed a "rounding bottom" formation on the daily chart at the Rs 413 level. This breakout is accompanied by huge volumes, indicating increased participation. Recently, the stock has recaptured its 20, 50, and 100-day SMAs and rebounded sharply, indicating a strong support zone. On the weekly and monthly charts, the stock is in a strong uptrend, forming a series of higher tops and bottoms. The daily, weekly, and monthly strength indicators (RSI) are in favourable terrain, which justifies the rising strength across all time frames. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 485-513 and a downside support zone of Rs 390-375.

Strategy: Buy

Target: Rs 485, Rs 513

Stop-Loss: Rs 390

Navin Fluorine International | CMP: Rs 3,755.10

Navin Fluorine has experienced a trend reversal on the daily and weekly charts, forming higher tops and bottoms. In the past couple of weeks, huge rising volumes signify increased participation. The stock is well-placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily and weekly "Band Bollinger" indicators justify increased momentum. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 4,000-4,150 and a downside support zone of Rs 3,650-3,550.

Strategy: Buy

Target: Rs 4,000, Rs 4,150

Stop-Loss: Rs 3,650

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One

Jupiter Wagons | CMP: Rs 489.55

Jupiter Wagons has experienced a strong resurgence from the neckline of its breakout on the weekly time frame, supported by robust trading volumes. This recent development indicates a countertrend, with prices moving above the short-term moving averages. On the technical side, the 14-period RSI (Relative Strength Index) has shown a positive crossover in relation to the recent price action, suggesting that the bullish trend is likely to continue. Hence, we recommend buying Jupiter Wagons around Rs 480.

Strategy: Buy

Target: Rs 550

Stop-Loss: Rs 450

Maruti Suzuki India | CMP: Rs 12,136.35

Maruti Suzuki has been in an uptrend for the last couple of trading weeks, hovering well above all its significant EMAs (Exponential Moving Averages) on the daily time frame chart. Also, with the recent runaway gap, the counter seems to be in bullish momentum, indicating a further potential uptrend in the near period. On the technical front, the MACD (Moving Average Convergence Divergence) and other oscillators hover in a comfortable zone, adding an inherent bullish stance in the counter. Hence, we recommend buying Maruti Suzuki around Rs 12,000.

Strategy: Buy

Target: Rs 12,770, 12,850

Stop-Loss: Rs 11,470

Reliance Industries | CMP: Rs 1,302.35

Reliance Industries has witnessed a steep correction of nearly 25 percent from its peak of Rs 1,603 in the past five months and has plummeted into oversold territory. However, in the last couple of trading sessions, the counter has gained some of its lost ground, suggesting an initial sign of reversal. Technically, the counter has surged above the 20 and 50 DEMA after a long haul, which implies an initial positive development in the counter. From a risk-reward point of view, the counter is placed at a lucrative zone and is most likely to continue its upward move in the near future. Hence, we recommend buying Reliance Industries around Rs 1,290.

Strategy: Buy

Target: Rs 1,400, Rs 1,420

Stop-Loss: Rs 1,220

Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox

Biocon | CMP: Rs 393.7

Biocon is reflecting strong volumes over the past week, indicating growing investor interest. The stock is approaching a critical resistance at Rs 400, and a sustained breakout above this level could lead to a significant upmove. Technically, the RSI is at 62, suggesting a bullish bias with room for further upside. The MACD histogram is in positive territory, signaling strong upward momentum, while the ADX (Average Directional Index) at 27 confirms a strengthening trend. The +DI (Directional Indicator) is firmly above the -DI, indicating that buyers are in control. Biocon’s recent price action, coupled with increased volumes, highlights its potential for further gains. The bullish view remains valid as long as the stock stays above Rs 375. A decisive breakout above Rs 400 will likely trigger strong buying interest, paving the way for higher targets.

Strategy: Buy

Target: Rs 428

Stop-Loss: Rs 375

NBCC | CMP: Rs 95.31

NBCC is demonstrating a strong pickup in momentum over the past few trading sessions after being in oversold territory. The stock has bounced back significantly from lower levels and is now trading above its 20-day EMA, indicating a positive shift in short-term trend and momentum. The RSI has risen sharply to 55.76 from oversold levels of 26, reflecting improving strength in the ongoing uptrend. The recent price action, coupled with increased volumes, suggests renewed buying interest at current levels. The bullish outlook remains intact as long as the stock stays above Rs 86. A decisive breakout above current levels is likely to attract further buying, pushing the stock toward its target of Rs 105.

Strategy: Buy

Target: Rs 105

Stop-Loss: Rs 86

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