Trade Spotlight: How should you trade Manappuram Finance, JK Tyre, Kirloskar Oil Engines, Ceat, Birlasoft, and others on December 22?

Top Buy Ideas for December 22

Equity benchmarks bounced back with a rally of more than half a percent on December 19 after four days of weakness, with market breadth turning positive. About 1,984 shares advanced against 848 declining shares on the NSE. The market is expected to witness a further uptrend, provided it defends short-term moving averages. Below are some short-term trading ideas to consider:

Manappuram Finance | CMP: Rs 292.65

On the daily chart, Manappuram Finance has surpassed the past four down-sloping trendline breakouts at the Rs 290 level on a closing basis. Rising volumes signify increased participation. The stock is well placed above its 20-, 50-, 100-, and 200-day SMAs, which reconfirms the bullish trend. Daily Bollinger Band buy signals indicate increased momentum. The daily strength RSI is in positive territory, signalling rising strength.

Strategy: Buy

Target: Rs 305, Rs 320

Stop-Loss: Rs 285

JK Tyre and Industries | CMP: Rs 485.75

On the daily and weekly charts, JK Tyre is trending higher, forming a series of higher tops and bottoms, indicating bullish sentiment. With Friday’s close, the stock has decisively broken out of multiple resistance levels at Rs 477, accompanied by huge volumes, signalling increased participation. Daily Bollinger Band buy signals indicate increased momentum. The daily, weekly, and monthly strength RSI remains in positive territory, signalling rising strength.

Strategy: Buy

Target: Rs 530, Rs 555

Stop-Loss: Rs 477

Kirloskar Oil Engines | CMP: Rs 1,244.8

With the current weekly close, Kirloskar Oil Engines has broken out past a one-and-a-half-year down-sloping trendline at Rs 1,185 on a closing basis. Over the past couple of months, huge volumes signal increased participation. The stock is well placed above its 20-, 50-, 100-, and 200-day SMAs, which are also inching higher along with rising prices, reconfirming a bullish trend. The daily, weekly, and monthly strength RSI is in positive territory, signalling rising strength. Daily and weekly Bollinger Band buy signals indicate increased momentum.

Strategy: Buy

Target: Rs 1,385, Rs 1,470

Stop-Loss: Rs 1,190

Ceat | CMP: Rs 3,931.7

Ceat has experienced a pronounced correction in the recent period, resulting in a decline that pushed the stock price towards the 100 DEMA. However, in the last session, the counter showed a spurt in price and volume, coinciding with the 100 DEMA support zone and the neckline of the previous breakout, suggesting a pullback.

Additionally, the 14-day RSI has shown a positive crossover, and the MACD is signalling a turnaround, adding to the bullish quotient. Hence, we recommend buying Ceat around Rs 3,900.

Strategy: Buy

Target: Rs 4,200, Rs 4,300

Stop-Loss: Rs 3,650

Godrej Consumer Products | CMP: Rs 1,186.2

Godrej Consumer Products has shown a rebound from the Rs 1,120 zone in recent sessions, surpassing the 200-day SMA, which indicates the onset of a counter-trend. From a technical perspective, the MACD histogram has demonstrated buying momentum by moving above the signal line and forming a positive crossover.

Furthermore, the EMAs are approaching positive crossovers, suggesting that this upward momentum is likely to continue in the near future. Hence, we recommend buying Godrej Consumer Products around Rs 1,170.

Strategy: Buy

Target: Rs 1,230, Rs 1,250

Stop-Loss: Rs 1,120

Himadri Speciality Chemical | CMP: Rs 478.35

Himadri Speciality Chemical has demonstrated substantial consolidation near the cluster of its significant EMAs and the 200 DSMA. However, recent traction in the counter has led to multiple positive crossovers among the EMAs.

Additionally, the stock has experienced a breakout from a sloping trendline on the daily chart, accompanied by a positive crossover in the MACD signal line. These indicators suggest a bullish outlook in the near term. Hence, we recommend buying HSCL around Rs 470.

Strategy: Buy

Target: Rs 520, Rs 530

Stop-Loss: Rs 440

Karur Vysya Bank | CMP: Rs 252.4

Karur Vysya Bank has broken out of a base-on-base formation, reinforcing a strong multi-timeframe uptrend. The prior shakeout candle, with a high near Rs 250.4, successfully tested the rising 10-week moving average, which acted as a textbook launchpad.

The stock responded with a strong bullish weekly close, signalling absorption of supply and renewed institutional participation. Structural strength remains intact, as consolidations remain shallow and supported by rising averages.

A decisive close above Rs 252 would trigger fresh momentum, opening an immediate upside towards the Rs 295–299 zone. Risk–reward remains favourable as long as the stock holds above the recent base, with any failure below the 10-week average acting as the key invalidation level.

Strategy: Buy

Target: Rs 299

Stop-Loss: Rs 236

Birlasoft | CMP: Rs 433.45

Birlasoft is carving out a textbook cup-and-handle pattern on the daily chart, with the right side evolving into a tight flag—often a precursor to strong post-breakout momentum. The base has shown clear institutional accumulation through elevated volumes, while the handle is forming on dried-up participation, reflecting supply exhaustion.

Rising 10-, 20-, and 50-day EMAs are well aligned, confirming a healthy uptrend across timeframes. Momentum indicators remain elevated yet controlled, signalling strength without excess. A decisive move above Rs 440 would validate the structure and could trigger a sustained directional push as trapped supply clears. Risk–reward remains favourable as long as the stock holds above the rising averages, keeping the broader bullish thesis intact.

Strategy: Buy

Targer: Rs 499

Stop-Loss: Rs 410

Titan Company | CMP: Rs 3,930.1

Titan is poised on the edge of a bullish cup-and-handle breakout near Rs 3,940, with the base showing healthy accumulation and orderly price development. The handle has tightened constructively, resting on a rising short-term EMA spread, which is acting as a clear launchpad for momentum expansion.

Trend strength is improving across timeframes, with higher lows intact and participation remaining supportive rather than speculative. A sustained move above Rs 3,940 is likely to attract strong follow-through buying and open the path towards fresh upside, driven by momentum traders and positional flows.

Risk remains well defined as long as the stock holds above the handle support zone, while failure to sustain above the breakout area would delay—but not structurally negate—the bullish setup.

Strategy: Buy

Target: Rs 4,030

Stop-Loss: Rs 3,900