The market bounced back after a day of sharp correction, rising by a fourth of a percent on the Nifty 50 on January 7, with breadth favouring the bulls. About 1,895 shares advanced compared to 616 shares that declined on the NSE. The benchmark indices are expected to remain rangebound. Below are some trading ideas for the near term:
Amol Athawale, VP – technical Research at Kotak Securities
ICICI Bank | CMP: Rs 1,279.25
After the short-term correction from higher levels, the downward momentum in ICICI Bank halted around its support area. On daily charts, the stock has formed a Morning Star candlestick reversal pattern 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 1,370
Stop-Loss: Rs 1,230
Reliance Industries | CMP: Rs 1,240.85
Post its decline, Reliance Industries reversed from its important support zone. The stock has formed a rounding bottom chart pattern and is in a steady uptrend. Technical indicators like the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) also point to further upside potential, which could enhance the bullish momentum in the coming horizon. This makes it a favourable candidate from a risk-reward perspective.
Strategy: Buy
Target: Rs 1,330
Stop-Loss: Rs 1,190
Granules India | CMP: Rs 616.1
After its decline from higher levels, Granules India rebounded from its demand zone and witnessed a steady recovery. Additionally, the stock has broken out from its range-bound formation on the daily charts. The gradual upward movement suggests the start of a new bullish phase.
Strategy: Buy
Target: Rs 660
Stop-Loss: Rs 590
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
SBI Life Insurance Company | CMP: Rs 1,477.75
On the daily chart, SBI Life failed to breach the lower Bollinger Bands and bounced upwards in the previous week. It has now completed its journey toward the upper bands and has also given a breakout from them. A follow-up buying move is needed for the bullish momentum to continue. Since December 31, the stock has not closed below its previous day's low, keeping the daily tone positive.
In the last session, the stock surged by 3% with a rise in volume, which is a positive sign. The ADX (Average Directional Index) is currently above 25, at 36, suggesting that positive momentum is likely to continue. In summary, the trend for SBI Life is bullish. A break above Rs 1,490 is essential for a trending move towards Rs 1,545, followed by Rs 1,600. The nearest support on the downside is at Rs 1,435.
Strategy: Buy
Target: Rs 1,545, Rs 1,600
Stop-Loss: Rs 1,435
Oil and Natural Gas Corporation | CMP: Rs 263.5
In the previous session, the oil and gas sector outperformed all other sectors, with ONGC being one of the top contributors, gaining 3.6%. On the daily chart, ONGC recently broke out of its downward-sloping trendline with a rise in volume and has protected its prior day's low since December 31, 2024. This keeps the daily bias in favour of the bulls.
Prices are now near their previous swing high of Rs 265. A daily close above this level could accelerate the positive momentum. Moreover, the Supertrend indicator has recently started to trade below the prices, which supports the overall bullish stance. In summary, the current trend for ONGC is bullish. A break above Rs 265 can intensify buying pressure and lift prices towards Rs 275, followed by Rs 290. The nearest support is at Rs 255.
Strategy: Buy
Target: Rs 275, Rs 290
Stop-Loss: Rs 255
Mazda | CMP: Rs 1,739.55
Mazda experienced a sharp rally in the previous session, gaining 13% in a single trading day! The stock has formed a rounding bottom pattern and closed above Rs 1,650, confirming the breakout of the pattern. On the daily chart, the ADX is suggesting strong momentum, with a reading of 47.59, well above the 25 level. For now, a "buy on dips" strategy would be ideal to ride the trend.
In summary, the trend for the stock is bullish. Use dips towards Rs 1,710-1,730 as a buying opportunity for a move towards Rs 1,850-1,870, as long as Rs 1,650 holds as support.
Strategy: Buy
Target: Rs 1,850, Rs 1,870
Stop-Loss: Rs 1,650
Om Mehra, Technical Analyst at Samco Securities
UPL | CMP: Rs 544.5
UPL has shown a strong recovery from its recent lows near Rs 508, which acted as a critical support level. The significant increase in volume during the rally signals robust buying interest, reinforcing the bullish sentiment. The formation of consecutive green candles, coupled with a breakout above the immediate resistance zone around Rs 528, highlights a decisive shift in momentum. Additionally, UPL has managed to reclaim its short-term moving average, further confirming the potential for a sustained uptrend. However, the minor resistance at Rs 550 remains. If this level is broken, there is room for further upside. Hence, one can initiate a long position at the current market price (CMP).
Strategy: Buy
Target: Rs 590
Stop-Loss: Rs 515
Minda Corporation | CMP: Rs 530.5
Minda Corporation displayed strong bullish momentum, forming a solid candlestick and closing above its 50-day simple moving average in the last session. This indicates a positive trend, further reinforced by a breakout from the recent consolidation phase visible on the chart. The daily RSI remains at 58, suggesting overall bullish strength. Additionally, the noticeable rise in delivery volumes over the last two sessions further confirms the bullish outlook. Hence, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 585
Stop-Loss: Rs 505
Chambal Fertilisers and Chemicals | CMP: Rs 502.15
Chambal Fertilisers & Chemicals has been in a consolidation phase but is gradually inching higher after forming a pattern similar to a tweezer bottom. The primary trend remains bullish, supported by higher highs and higher lows. The stock has formed a strong base around the Rs 450 level and has bounced from the 78.6% Fibonacci retracement near Rs 480.
A minor resistance is seen at Rs 507-508; if broken, the stock could see further upside. Strong volume participation and the stock's positioning above the 20 DMA confirm the bullish trend. Hence, based on the above technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 555
Stop-Loss: Rs 475
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