The market gained in three out of four sessions and closed the holiday-shortened week with nearly a 1% gain. On December 27, it was up by 0.3%, amid consolidation, marking a positive start for the January series. A total of 1,268 shares advanced, while 1,233 shares declined on the NSE. The market is expected to remain rangebound with a positive bias in the upcoming sessions. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Campus Activewear | CMP: Rs 315.8
Campus Activewear has recently broken out decisively from an "Inverse Head & Shoulders" reversal formation at the Rs 307 level on a closing basis. This breakout is supported by significant trading volumes, indicating increased participation. The stock is currently well-positioned above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), reaffirming its bullish outlook. Additionally, both the daily and weekly Relative Strength Index (RSI) are in favourable territory, suggesting strong momentum across all timeframes. The daily Bollinger Bands also indicate an increase in momentum. Investors are advised to buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 345, Rs 367
Stop-Loss: Rs 303
Welspun Corp | CMP: Rs 810.2
Welspun Corp is currently in a strong uptrend across all timeframes, consistently forming a series of higher highs and lows. Recently, it retraced towards the 38.2% Fibonacci support zone at the Rs 757 level and then rebounded sharply, indicating bullish sentiment. The stock is well-positioned above its 20, 50, 100, and 200-day Simple Moving Averages (SMA), all of which are rising alongside the stock price, further reinforcing the bullish trend. Additionally, the RSI on both the daily and weekly charts is in favourable territory, supporting the notion of increasing strength across all timeframes. Investors should consider buying, holding, and accumulating this stock.
Strategy: Buy
Target: Rs 855, Rs 885, Rs 905
Stop-Loss: Rs 790
Devyani International | CMP: Rs 192.72
Devyani International has successfully surpassed the "multiple resistance" breakout at the Rs 185 level on a closing basis following Friday's substantial gains. This breakout is notable for being accompanied by high trading volumes, indicating increased investor participation. The stock has regained its 20, 50, and 200-day simple moving averages (SMAs) and has rebounded sharply. The daily, weekly, and monthly RSI shows favourable conditions, confirming rising strength across all timeframes. Additionally, the daily Bollinger Bands reflect increased momentum. Investors should consider buying, holding, and accumulating this stock.
Strategy: Buy
Target: Rs 220, Rs 235
Stop-Loss: Rs 183
Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox
Firstsource Solutions | CMP: Rs 368.6
Firstsource Solutions sustained above all key exponential moving averages (20, 50, 100, and 200 EMA), highlighting robust bullish momentum. The RSI is at 54, indicating healthy strength without being overbought, while the Average Directional Index (ADX) reflects a firm trend. The stock has been forming a series of higher highs and higher lows, signaling a continued uptrend. A breakout above the Rs 386 resistance level could trigger a strong upward move, with potential targets around Rs 405. The stock remains a strong buy at current levels, with support placed at Rs 355. The bullish view will be negated below Rs 345, and resistance is at Rs 386. Traders can consider accumulating the stock at current levels.
Strategy: Buy
Target: Rs 386, Rs 405
Stop-Loss: Rs 345
PG Electroplast | CMP: Rs 993.25
PG Electroplast has sustained comfortably above all key exponential moving averages (20, 50, 100, and 200 EMA), showcasing strong bullish momentum. The RSI is at 73 and has been sustaining above the 70 mark for a considerable time, indicating persistent strength. The ADX further supports the prevailing upward trend. The stock is trading within an ascending channel pattern, consistently forming higher highs and higher lows, which is a hallmark of a strong uptrend. With such a robust technical structure, PGEL looks poised to achieve a target of Rs 1,200 in the near term. The bullish view will be negated only if the stock falls below the Rs 885 support level, making it a critical level to watch. Traders can consider entering the stock at current levels.
Strategy: Buy
Target: Rs 1,200
Stop-Loss: Rs 885
One 97 Communications | CMP: Rs 1,014.25
Paytm displayed robust bullish momentum. The stock is making higher highs, a positive indication of a sustained uptrend. Technically, the RSI is at 65, signaling strength without being overbought, while the ADX stands at 39, highlighting solid trend strength. The stock is trading above all major exponential moving averages (20, 50, 100, and 200 EMA) and within the Bollinger Bands, reflecting stability and upward potential. With the current structure and momentum, Paytm appears well-positioned to achieve a target of Rs 1,170 in the near term. The bullish view will be negated if the stock closes below the Rs 950 support level, which aligns with a critical technical threshold. Traders can consider entering at current levels.
Strategy: Buy
Target: Rs 1,170
Stop-Loss: Rs 950
Rajesh Bhosale, Technical Analyst at Angel One
Ipca Laboratories | CMP: Rs 1,632.65
After establishing a base and forming a double bottom near the critical support of the 89 DEMA, Ipca Laboratories has rebounded sharply, breaking above the recent consolidation range and confirming a bullish breakout. This breakout is accompanied by robust volumes and a bullish candlestick pattern. Additionally, the RSI indicator has risen above the 60 level, signaling the stock's entry into positive momentum. Hence, we recommend buying the stock around Rs 1,632 - 1,628.
Strategy: Buy
Target: Rs 1,700
Stop-Loss: Rs 1,599
Mangalam Cement | CMP: Rs 981.1
The daily chart indicates a multiple-pattern bullish breakout. On a larger scale, Mangalam Cement confirmed a 'Cup and Handle' breakout, while on a smaller scale, the handle portion reflects a channel breakout. This breakout is accompanied by a surge in volume, with prices moving above all major moving averages. Hence, we recommend buying Mangalam Cement around Rs 981 - Rs 977.
Strategy: Buy
Target: Rs 1,080
Stop-Loss: Rs 936
Jubilant Foodworks | CMP: Rs 708.1
Jubilant Foodworks has shown strong performance over the last six months, with every minor dip being consistently bought. It has now achieved its highest closing level in two years, confirming a 'Cup and Handle' breakout on the weekly chart. Volume analysis reveals robust activity during price upswings, contrasted with lower volumes during downswings. Additionally, prices are trading well above key moving averages, and oscillators are favourably positioned, reinforcing the buy recommendation. Hence, we recommend buying Jubilant Foodworks around Rs 707 - Rs 705.
Strategy: Buy
Target: Rs 750
Stop-Loss: Rs 687
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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