The benchmark indices corrected after the uptrend seen in the previous couple of sessions, with the Nifty 50 falling by half a percent on January 24, accompanied by a negative market breadth. About 2,063 shares saw a correction, against 482 shares that increased on the NSE. The market is expected to consolidate with a negative bias, while volatility is expected to remain high. Below are some trading ideas for the near term:
Ameya Ranadive, Chartered Market Technician and Senior Technical Analyst at StoxBox
Britannia Industries | CMP: Rs 5,101.55
Britannia Industries has shown a positive technical outlook, suggesting potential for upward movement. The stock has been in a period of consolidation between the Rs 4,700–4,900 range over the past couple of months, indicating a stable base from which it could move higher. A rounding bottom formation has recently emerged, signaling a trend reversal and a possible shift towards higher levels.
Key technical indicators further support this bullish view. The Relative Strength Index (RSI) has moved to 68, showing positive momentum. Additionally, the Moving Average Convergence Divergence (MACD) has crossed into positive territory, which is a common signal of a trend reversal. The Average Directional Index (ADX) has displayed a favourable positive crossover, indicating that a strong trend is in place.
The stock is also trading above its 10-day and 20-day Exponential Moving Averages (EMA), suggesting that the short-term trend remains bullish. Given these factors, Britannia appears to be a solid buy at current levels, with a target price of Rs 5,600. However, if the stock falls below Rs 4,800, the bullish outlook will be negated, signaling a possible reversal.
Strategy: Buy
Target: Rs 5,600
Stop-Loss: Rs 4,800
ICICI Bank | CMP: Rs 1,209.2
ICICI Bank presents an attractive opportunity for investors, given its recent price drop of 11% over the past two months. The stock has found significant support at Rs 1,190, a level where prices have historically reversed. This pattern suggests that the stock may be poised for a rebound.
Further backing this recovery potential is the RSI, which is currently at 35, a level typically associated with oversold conditions. When RSI is at these levels, it often signals that selling pressure has eased, and a reversal or price stabilization could be near. This provides a favourable risk-to-reward proposition for those looking to enter at these levels.
ICICI Bank’s valuation at Rs 1,209 offers a good entry point, with potential targets set between Rs 1,285 and Rs 1,315. However, if the stock moves below Rs 1,170, this bullish stance would be invalidated, suggesting further downside risk.
Strategy: Buy
Target: Rs 1,285, Rs 1,315
Stop-Loss: Rs 1,170
AAVAS Financiers | CMP: Rs 1,725
AAVAS Financiers has shown strong technical signals that suggest potential for further growth. The stock has seen consolidation within the Rs 1,600–1,680 range over the past few months, providing a stable foundation for a possible breakout. This consolidation phase indicates a build-up of pressure, which could lead to upward movement.
The RSI stands at 64, reflecting positive momentum and suggesting that the stock is in an uptrend. In addition, the MACD has moved into positive territory, further supporting the case for an upward move. The ADX shows a favourable positive crossover, indicating a strong trend in place.
AAVAS is also trading above both its 10-day and 20-day EMA, which reinforces the bullish short-term outlook. Given these favourable technical indicators, AAVAS appears to be a good buy at current levels, with a target price of Rs 1,850. However, if the stock falls below Rs 1,660, the bullish view would be invalidated, and investors should reconsider their positions. With a solid technical setup, AAVAS offers potential for medium-term growth.
Strategy: Buy
Target: Rs 1,850
Stop-Loss: Rs 1,660
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Redington | CMP: Rs 223.3
On the weekly chart, Redington has confirmed a breakout from the "Inverse Head & Shoulders" pattern at the neckline level of Rs 213, based on closing prices. The significant volume accompanying this breakout indicates increased investor participation. The stock is currently positioned above its 20, 50, 100, and 200-day simple moving averages (SMA), all of which are also trending upwards alongside the price increase, reaffirming the bullish outlook.
Furthermore, the daily, weekly, and monthly RSI indicators are all showing positive strength across these timeframes. The daily and weekly Bollinger Bands also signal a buy, reflecting growing momentum. Investors can buy, hold, and accumulate this stock, with an expected upside potential of Rs 245–265 and a downside support zone between Rs 215–208.
Strategy: Buy
Target: Rs 245, Rs 265
Stop-Loss: Rs 215
JK Cement | CMP: Rs 4,755.9
JK Cement is currently in a strong uptrend across all timeframes, forming a series of higher highs and higher lows. Recently, it has successfully recaptured its 50-day, 100-day, and 200-day simple moving averages (SMA) and has rebounded sharply, reaffirming bullish market sentiment.
The stock is approaching key resistance levels at Rs 4,880, and a sustained move above this level could generate further momentum toward the target range of Rs 5,050 to Rs 5,250. Strength indicators, such as the RSI, are showing positive readings on daily, weekly, and monthly charts, indicating consistent strength in the stock. Investors can buy, hold, and accumulate this stock, with an expected upside target of Rs 5,050 to Rs 5,250 and a downside support zone between Rs 4,570 and Rs 4,465.
Strategy: Buy
Target: Rs 5,050, Rs 5,250
Stop-Loss: Rs 4,570
Manappuram Finance | CMP: Rs 196.71
Manappuram Finance is trending higher on the daily chart, forming a series of ascending peaks and troughs within an upsloping channel. Significant volume spikes during this rally indicate increased participation from investors. The stock is positioned well above its 20, 50, 100, and 200-day simple moving averages (SMAs), reinforcing bullish sentiments. Additionally, the daily, weekly, and monthly (RSI) readings are favourable, demonstrating increasing strength. Investors should consider buying, holding, and accumulating this stock, with an anticipated upside between Rs 218 and Rs 230, and a support zone for the downside between Rs 188 and Rs 175.
Strategy: Buy
Target: Rs 218, Rs 230
Stop-Loss: Rs 188
Rajesh Bhosale, Technical Analyst at Angel One
Zensar Technologies | CMP: Rs 831.75
Zensar Technologies has been consolidating over the past few months but has relatively outperformed the market during this period. Prices faced resistance around the Rs 820 level and closed above it, marking the highest weekly close. This breakout was accompanied by a strong bullish candle on the daily chart, supported by robust volumes. We anticipate this outperformance to persist in the near term. Hence, we recommend buying Zensar Technologies around Rs 831–825.
Strategy: Buy
Target: Rs 910
Stop-Loss: Rs 789
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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