Trade Spotlight: How should you trade Hindustan Zinc, Punjab National Bank, Tata Steel, MCX India, Laurus Labs, and others on January 16?

Top Trading Ideas for January 16

• Experts pick top 8 trading ideas including Hindustan Zinc, Punjab National Bank, Tata Steel, MCX Inida, Laurus Labs

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Equity benchmarks recorded a one-third percent loss, continuing the downtrend for the second consecutive session on January 14, with moderately weakening market breadth. A total of 1,498 shares saw selling pressure compared to 1,385 shares that gained on the NSE. The market may remain range-bound until it decisively breaks the current week’s high–low range. Below are some short-term trading ideas to consider:

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Hindustan Zinc | CMP: Rs 654.2

Hindustan Zinc continues to remain in a strong uptrend, consistently forming higher tops and higher bottoms. It is trading well above both short-term and long-term moving averages, indicating sustained strength. After witnessing consolidation over the past couple of weeks, the stock has now delivered a fresh breakout, which is supported by higher-than-average volumes, reinforcing the bullish outlook.

From a derivatives perspective, the addition of fresh long positions further strengthens the positive bias. Considering the overall technical setup, the stock appears well-positioned to move towards the Rs 700 level in the near term, while crucial support is placed at Rs 621.

Strategy: Buy

Target: Rs 700

Stop-Loss: Rs 621

Punjab National Bank | CMP: Rs 128.68

Punjab National Bank gave a fresh breakout from an ascending triangle pattern on the daily chart. It surpassed double-top resistance and ended at 52-week highs. The sharp price up-move is backed by significantly higher volumes, which validates the bullish setup.

Momentum indicators are also supportive, with the RSI moving above the 65 mark and the MACD generating a bullish crossover, indicating improving upward momentum. Overall, the technical structure suggests the stock is well placed to move towards the Rs 140 level in the near term, while immediate support is seen near Rs 123.

Strategy: Buy

Target: Rs 140

Stop-Loss: Rs 123

Polycab India | CMP: Rs 7,323.5

Polycab India earlier formed a double-top pattern and has since been making lower highs and lower lows, indicating a weakening price structure. It has also slipped below all its key short-term moving averages, reinforcing the bearish bias. Currently, the stock is on the verge of breaking down from its rising trendline, with immediate support placed near Rs 7,250. A decisive breach below this level could accelerate selling pressure and drag the stock towards the Rs 6,800 zone.

The bearish outlook would be invalidated only if the stock manages to sustain a move above Rs 7,560 on the upside. From a derivatives perspective, the presence of fresh short build-up further supports the negative view. Considering the overall technical setup, the stock appears poised for a breakdown and is likely to drift towards the Rs 6,800 level in the near term.

Strategy: Sell

Target: Rs 6,800

Stop-Loss: Rs 7,560

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

Tata Steel | CMP: Rs 189.25

The Nifty Metal index has been outperforming the frontline indices for the past few sessions, driven by strong buying interest in metal stocks. Tata Steel has delivered a significant technical breakout, forming a Cup and Handle pattern on the daily chart, which is considered a bullish continuation signal. This breakout is validated by robust volumes, adding conviction to the move.

Currently, the stock is trading at an all-time high, and all major moving averages are positively aligned, reinforcing the bullish trend. Momentum indicators are also supportive, with the daily and weekly RSI firmly positioned in the super-bullish zone. The MACD remains above its zero line and signal line, while the histogram indicates strengthening upside momentum. Based on these technical factors, the stock is expected to maintain its upward trajectory. Accumulation is advised in the Rs 190–188 zone.

Strategy: Buy

Target: Rs 205

Stop-Loss: Rs 182

Bank of India | CMP: Rs 152.87

The Nifty PSU Bank index has shown remarkable strength, taking support near its 20-day EMA before staging a sharp rally. On Wednesday, the index marked a fresh all-time high, significantly outperforming the benchmark indices. Bank of India mirrored this strength, finding support in the Rs 143–142 zone, which coincides with the 34-day EMA and the 61.8% Fibonacci retracement level of its prior rally. This confluence acted as a strong base, triggering a sharp rebound accompanied by higher volumes.

The stock now trades above all key moving averages, and the daily RSI is firmly in the bullish zone, signalling strong momentum. These technical factors suggest continued upside potential. Accumulation is recommended in the Rs 153–151 zone.

Strategy: Buy

Target: Rs 163

Stop-Loss: Rs 147

Multi Commodity Exchange of India | CMP: Rs 2,417

MCX has been a consistent outperformer over the past few months, maintaining a clear uptrend characterized by a series of higher highs and higher lows. Technical indicators confirm strong trend strength, with the Average Directional Index (ADX) reading at 36.79 on the daily chart and 39.43 on the weekly chart, well above the 25 threshold, which signals a robust trend.

The Directional Movement Index also supports the bullish outlook, while price action remains firmly above all key moving averages. These factors indicate that the stock is in a powerful uptrend with strong momentum. Accumulation is suggested in the Rs 2,420–2,400 zone.

Strategy: Buy

Target: Rs 2,590

Stop-Loss: Rs 2,330

Rupak De, Senior Technical Analyst at LKP Securities

Laurus Labs | CMP: Rs 1,090.5

Laurus Labs has moved up over the last two trading sessions following the formation of a tweezers bottom reversal pattern on the daily timeframe. Additionally, the higher-top higher-bottom structure appears to be intact. The RSI is in a bullish crossover and is trending higher.

The stock is likely to continue its recovery in the coming days. A stop-loss can be placed below Rs 1,060, while a long position may be considered with potential upside towards Rs 1,160.

Strategy: Buy

Target: Rs 1,160

Stop-Loss: Rs 1,060

KEI Industries | CMP: Rs 4,384.6

Following a correction, KEI Industries has formed a bullish engulfing pattern on the daily chart, indicating a potential bullish reversal in price. Additionally, the stock has moved above the 20 EMA. Sentiment around the stock appears attractive after the recent decline.

A long position can be considered with a stop-loss placed at Rs 4,270. On the higher end, a target can be set at Rs 4,700.

Strategy: Buy

Target: Rs 4,700

Stop-Loss: Rs 4,270