Trade Spotlight: How should you trade Havells India, Tata Elxsi, REC, SAIL, Union Bank of India, and others on January 6?

Top Buy Ideas for January 6

• Experts picked 9 stock ideas for January 6 including Havells India, Tata Elxsi, REC, SAIL, and Union Bank of India

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Equity benchmarks corrected for the first time in the last four sessions, with the Nifty 50 falling 0.3 percent on January 5, while market breadth favoured the bears. About 1,821 shares declined against 1,068 advancing shares on the NSE. The market may remain range-bound until it trades below Monday’s high. Below are some short-term trading ideas to consider:

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

Varun Beverages | CMP: Rs 488.7

Varun Beverages has witnessed a decisive trendline and triangle breakout, indicating a resumption of the primary uptrend. The momentum setup is supportive, with the RSI registering a breakout and currently hovering near the 55 level, reflecting improving strength without entering overbought territory.

Additionally, the MACD has generated a bullish crossover, reinforcing the positive momentum bias. From a price–volume perspective, the stock has also managed to close above its quarterly VWAP (volume-weighted average price), which typically acts as an important medium-term reference point for institutional participants and further validates the breakout. Traders may consider entering long positions in the Rs 490–485 zone.

Strategy: Buy

Target: Rs 550

Stop-Loss: Rs 460

Havells India | CMP: Rs 1,451.4

Havells has exhibited a strong improvement in its technical structure, marked by a clear RSI range breakout alongside a decisive price trendline breakout, as observed on the chart. Momentum indicators are supportive, with the RSI indicating strengthening buying interest, while the MACD has confirmed a bullish crossover, reinforcing the positive bias.

From a trend perspective, the stock has closed above its 10- and 20-day DEMA, signalling short-term strength, and has also reclaimed the monthly VWAP, which enhances the credibility of the emerging uptrend and reflects improved institutional participation. Traders may consider entering long positions in the Rs 1,455–1,430 zone.

Strategy: Buy

Target: Rs 1,560

Stop-Loss: Rs 1,375

Indian Renewable Energy Development Agency | CMP: Rs 144.57

IREDA is showing encouraging technical signals after forming a well-defined double-bottom pattern on the chart, indicating a potential trend reversal. The setup is further supported by bullish divergence, suggesting improving momentum despite earlier price weakness. The stock has managed to close above its 10-DEMA, highlighting short-term strength.

Additionally, the RSI has witnessed a trendline breakout, reflecting renewed buying interest, while the MACD has generated a bullish crossover, reinforcing the positive bias. Price action has also confirmed strength with a close above the previous swing high, which improves the probability of further upside. Traders may consider entering long positions in the Rs 145–142 zone.

Strategy: Buy

Target: Rs 162

Stop-Loss: Rs 135

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Tata Elxsi | CMP: Rs 5,363.5

Tata Elxsi has provided a strong breakout from the falling trendline, accompanied by a decline in open interest in the futures segment, indicating short covering. It has been one of the underperformers in the IT space, and with this strong bounce-back, the short-term outlook has changed from sell to buy.

After rallying sharply in a single session, the stock witnessed some profit booking and tested its 20-day moving average. However, it has reversed from those levels and has been outperforming its sector over the past couple of trading sessions, indicating relative strength in the near term.

The stock has witnessed strong Put additions in the Rs 5,400–5,200 strikes, while the highest Call base is at the Rs 5,500 strike, which could act as a short-term supply zone. Traders may consider buying Tata Elxsi futures in the Rs 5,350–5,380 range.

Strategy: Buy

Target: Rs 5,520, Rs 5,600

Stop-Loss: Rs 5,200

Marico | CMP: Rs 773

Marico Futures has delivered a strong breakout from a sideways consolidation, accompanied by an increase in open interest in the futures segment, indicating long buildup. A positive business update, along with a breakout above the highs formed during the Q2 results, suggests a higher probability of improved performance in the upcoming result season. In anticipation of this, the overall trend appears bullish in the near term.

As per options data, the stock has witnessed significant Put additions from the Rs 770 to Rs 730 strikes, while there is no major Call base until the Rs 820 strike, which now acts as the potential upside target. Traders may consider buying Marico futures in the Rs 775–780 range.

Strategy: Buy

Target: Rs 805, Rs 820

Stop-Loss: Rs 749

Vidnyan S Sawant, Head of Research at GEPL Capital

UPL | CMP: Rs 805.1

UPL has been in a strong uptrend since February 2024, forming higher highs and higher lows after reversing from the 61.8 percent Fibonacci retracement level. The stock has confirmed a multi-year breakout above the June 2021 resistance trendline, backed by strong volumes, signalling trend resumption. The RSI near 70 further confirms robust bullish momentum.

Strategy: Buy

Target: Rs 861

Stop-Loss: Rs 772

REC | CMP: Rs 381

REC has confirmed a breakout from the triangular consolidation formed since July 2024, indicating a likely resumption of the primary uptrend. The move is reinforced by a triple-bottom base, suggesting strong buying interest at lower levels. Momentum remains supportive, with the RSI trending higher and volumes expanding compared to recent weeks, adding credibility to the breakout and improving the outlook for further upside continuation.

Strategy: Buy

Target: Rs 408

Stop-Loss: Rs 365

Steel Authority of India | CMP: Rs 150.85

SAIL is building a strong base on the weekly chart, marked by a series of higher bottoms, reflecting an improving price structure. The stock has shown robust price action, as a six-week decline was retraced in just two weeks, highlighting strong buying interest.

It is well positioned above the key 12- and 26-week EMAs, indicating underlying trend strength. Momentum remains supportive, with the RSI at 65, signalling sustained bullish momentum.

Strategy: Buy

Target: Rs 163

Stop-Loss: Rs 145

Union Bank of India | CMP: Rs 162.36

Union Bank is forming a Cup & Handle pattern, a classic bullish continuation setup, along with a five-week consolidation phase that suggests accumulation. Momentum indicators support the positive bias, with the RSI holding above 60 and a bullish divergence visible on the daily chart, indicating strengthening momentum. Additionally, volumes have expanded above the 20-day average, lending further confirmation to the bullish outlook.

Strategy: Buy

Target: Rs 174

Stop-Loss: Rs 156