Trade Spotlight: How should you trade BPCL, Aditya Birla Capital, Eicher Motors, Mahindra and Mahindra, L&T Finance, and others on January 1?

Top Buy Ideas for January 1

• Experts advise buying seven stocks including BPCL, Aditya Birla Capital, Eicher Motors, Mahindra and Mahindra, and L&T Finance on January 1.

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The benchmark indices rebounded smartly after four days of losses, with the Nifty 50 rising 0.74 percent on December 31. Market breadth also turned positive, with about 2,040 shares advancing against 841 declining shares on the NSE. The positive momentum is expected to sustain for a few more sessions. Below are some short-term trading ideas to consider:

Arun Kumar Mantri, Founder of Mantri FinMart

Aditya Birla Capital | CMP: Rs 357.7

Aditya Birla Capital has given a strong breakout above the five-day trading highs, crossing strong resistance zones of the falling 20-DMA on the daily charts. Volumes have been on the bullish side for the past two trading sessions, along with a positive crossover on the 14-day RSI on the daily charts.

The MACD is trading around the signal line with broadening bands on the daily charts, which suggests positive momentum in the counter. On the other hand, the ADX is also signaling strong strength across all major time frames, affirming our bullish view on the stock in the short term.

Strategy: Buy

Target: Rs Rs 373

Stop-Loss: Rs 348

Nestle India | CMP: Rs 1,288

Nestle India has shown massive momentum in the last few sessions, surpassing major resistance zones of Rs 1,250–1,260 on the short-term time frames, supported by notable trading volumes. The price is moving along the upper Bollinger Band with a continuous trend of increasing volumes.

The RSI and MACD are showing a positive crossover on the daily charts, with the price displaying good action on minor pullbacks during intraday trades. Support for the stock is around Rs 1,230–1,240, while Rs 1,390–1,400 remains a short-term price hurdle.

Strategy: Buy

Target: Rs 1,399

Stop-Loss: Rs 1,238

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

Bharat Petroleum Corporation | CMP: Rs 384

BPCL has given a stage-2 cup pattern breakout on a daily scale. This breakout is confirmed by robust volumes. The RSI has decisively moved above 60, indicating a shift from neutral to bullish momentum and rising buying strength.

Additionally, the ratio line in the Nifty Oil & Gas / Nifty ratio has also broken out of its consolidation zone, pointing toward potential sectoral outperformance, with BPCL well placed to lead the move. Hence, we recommend accumulating the stock in the zone of Rs 384–380.

Strategy: Buy

Target: Rs 415

Stop-Loss: Rs 365

L&T Finance | CMP: Rs 316

L&T Finance has given a consolidation breakout on the daily chart, signaling a potential trend reversal. The breakout is backed by a strong surge in volumes, adding credibility to the move. The RSI has also witnessed a trendline breakout and is placed above 60, indicating strengthening bullish momentum.

Additionally, the stock has closed above the upper Bollinger Band, which reflects strong buying pressure and an expansion in volatility, often seen during the early phase of a sharp upside move. Hence, we recommend accumulating the stock in the zone of Rs 316–313.

Strategy: Buy

Target: Rs 340

Stop-Loss: Rs 303

Mahindra and Mahindra | CMP: Rs 3,709.2

M&M has broken out of a downward-sloping trendline on the daily chart, signaling a potential trend reversal. The DI+ crossing above DI- on the ADX indicator highlights a shift in favour of buyers and strengthening directional momentum. The RSI’s sharp rebound from 43 to 58 reflects improving bullish strength.

Meanwhile, the ratio line in the Nifty Auto / Nifty ratio chart has held its upward-sloping trendline and rebounded, pointing to possible sectoral outperformance, with Mahindra & Mahindra likely to emerge as a key leader. Hence, we recommend accumulating the stock in the zone of Rs 3,710–3,690.

Strategy: Buy

Target: Rs 3,965

Stop-Loss: Rs 3,590

Rupak De, Senior Technical Analyst at LKP Securities

Eicher Motors | CMP: Rs 7,312.5

On the lower end, Eicher Motors found support near the 21 EMA and rebounded on the daily timeframe. Moreover, the two days of decline were completely offset in a single session, indicating a resurgence of buying interest.

The RSI has just entered a bullish crossover, signaling improving momentum. In the short term, the uptrend is likely to continue, with potential upside towards Rs 7,650. On the downside, support is placed at Rs 7,140.

Strategy: Buy

Target: Rs 7,650

Stop-Loss: Rs 7,140

RBL Bank | CMP: Rs 315.8

RBL Bank has moved higher after a phase of consolidation on the daily timeframe, indicating a strong increase in buying interest. Additionally, the stock has been sustaining above the 21-day exponential moving average, confirming a positive bias.

The RSI is in a bullish crossover and continues to rise, suggesting strengthening momentum. In the short term, the uptrend is expected to continue, with potential upside towards Rs 335. On the downside, support is placed at Rs 305.

Strategy: Buy

Target: Rs 335

Stop-Loss: Rs 305