Trade Spotlight: How should you trade Britannia, Bank of Baroda, Lupin, Aavas Financiers, JK Cement, and others on January 22?

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The benchmark indices fell sharply after a day of rally, with the Nifty 50 declining by 1.4 percent, and the market breadth was in negative terrain. About 2,001 shares were under pressure, while 544 shares gained on the NSE. The market may attempt to rebound amid likely consolidation after the steep fall. Below are some trading ideas for the near term:

Amol Athawale, VP Technical Research at Kotak Securities

Lupin | CMP: Rs 2,104.25

After the short-term correction from higher levels, the downward momentum in Lupin has stopped around its support area. On the daily charts, the counter has formed a Hammer candlestick reversal formation at its important demand zone. Therefore, the structure suggests a revival of the uptrend from the current levels in the near term.

Strategy: Buy

Target: Rs 2,255

Stop-Loss: Rs 2,035

Bank of Baroda | CMP: Rs 229.61

After a decline from the higher levels, Bank of Baroda rebounded from its support zone and witnessed a steady recovery. Additionally, on the daily charts, the counter is trading near the breakout line of its sloping channel formation. The upward movement suggests a likely breakout and a new bullish trend from the current levels.

Strategy: Buy

Target: Rs 245

Stop-Loss: Rs 220

Britannia Industries | CMP: Rs 4,903.85

Following its decline, Britannia is in an accumulation zone, trading in a rangebound mode on the weekly scale. However, recent bullish activity near the lower boundary of the range indicates strong support. Furthermore, the gradual upward movement on the daily scale suggests a new bullish trend in the coming horizon.

Strategy: Buy

Target: Rs 5,250

Stop-Loss: Rs 4,730

Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors

JK Cement | CMP: Rs 4,578

The cement sector managed to outperform other sectors, with JK Cement surging by 1.66% despite the fall in major indices, which is a strong bullish signal. Prices were unable to sustain below the lower Bollinger bands, and a sharp reversal on the upside was seen. Additionally, prices have protected the prior day’s low since January 14, keeping the daily bias in favour of the bulls. For now, a break above Rs 4,650 is needed for bullish momentum to continue towards the upper bands, i.e., near Rs 4,830 levels.

The current trend for JK Cement is positive. A break above Rs 4,650 can lift the price higher towards Rs 4,830, followed by Rs 5,020. On the downside, Rs 4,470 is the nearest support to watch.

Strategy: Buy

Target: Rs 4,830, Rs 5,020

Stop-Loss: Rs 4,470

Century Plyboards | CMP: Rs 818.65

In the previous session, Century Plyboards gained more than 3% with a rise in volume, which is a strong bullish signal. Since January 14, prices have been closing in the green and have not closed below their previous day’s low, which keeps the daily bias on the bullish side. Prices took support from the thick Ichimoku cloud and reversed upwards, further supporting the bullish stance. Additionally, the MACD (Moving Average Convergence Divergence) has just given a bullish crossover, which serves as a double confirmation.

The current trend for Century Plyboards is positive. A break above Rs 840 can lift the prices towards Rs 875, followed by Rs 910. On the downside, Rs 800 is the nearest support.

Strategy: Buy

Target: Rs 875, Rs 910

Stop-Loss: Rs 800

Aavas Financiers | CMP: Rs 1,700.7

In the previous session, Aavas Financiers witnessed a gap-up opening and gained 2.08%. The stock has been moving in a rectangular range over the past 3 months, suggesting a period of accumulation. A break above Rs 1,730 will confirm the breakout of this pattern. On the daily chart, MACD has just given a bullish crossover. For confirmation, follow-up buying is needed.

The current trend for Aavas Financiers is bullish. A break above Rs 1,730 can lift the prices towards Rs 1,820, followed by Rs 1,880. On the downside, Rs 1,650 is the nearest support.

Strategy: Buy

Target: Rs 1,820, Rs 1,880

Stop-Loss: Rs 1,650