Trade Spotlight: How should you trade Marico, Wipro, CG Power, Britannia, Ashok Leyland, UPL, and others on December 16?

Top Buy Ideas for December 16

Equity benchmarks closed moderately lower after a two-day rally, with the Nifty 50 falling 20 points on December 15. Market breadth was slightly in favour of bulls, with about 1,488 shares gaining against 1,363 shares supporting the bears. Consolidation and range-bound trading may continue until the market delivers a strong close above the falling resistance trendline. Below are some short-term trading ideas to consider:

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Marico | CMP: Rs 737.65

Marico has been consolidating within a range of Rs 770 and Rs 715 over the past few weeks. However, the overall setup remains bullish as the stock has witnessed long additions, and the short-term correction was on account of profit booking rather than short build-up. This increases the probability of an upside breakout. The stock has closed above its maximum pain level of Rs 730, indicating a bullish outcome in the near term. Traders may consider buying Marico futures in the range of Rs 735–740.

Strategy: Buy

Target: Rs 770, Rs 790

Stop-Loss: Rs 715

Wipro | CMP: Rs 261.75

Wipro has been moving higher, and the short-term trend in the Nifty IT index has been positive. The stock has witnessed short covering, and overall, large-cap stocks have also seen short covering, indicating a positive short-term outlook. The stock has the highest Call base at Rs 260 and has managed to close above this level. Traders may consider buying Wipro in the range of Rs 260–263.

Strategy: Buy

Target: Rs 275

Stop-Loss: Rs 250

UltraTech Cement | CMP: Rs 11,728

UltraTech Cement appears to have completed its short-term correction, with the stock breaking above the uptrend line along with an increase in open interest, indicating long build-up. The earlier decline was due to long unwinding, followed by marginal short additions. The stock now appears to have resumed its fresh uptrend. Traders may consider buying UltraTech Cement in the range of Rs 11,700–11,750.

Strategy: Buy

Target: Rs 12,500

Stop-Loss: Rs 11,450

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

CG Power Industrial Solutions | CMP: Rs 670.15

After a sharp decline, CG Power formed a bullish engulfing pattern on December 9, indicating a potential reversal. Volumes during this session were healthy and above average, adding strength to the pattern. The stock is also holding near an important trendline support, further improving the technical structure.

Additionally, the MACD histogram has shown a bullish divergence, accompanied by a bullish crossover between the MACD and the signal line. This confluence of signals suggests improving momentum and increases the probability of a near-term upside move in the stock. Traders may consider entering long positions in the Rs 670–660 zone.

Strategy: Buy

Target: Rs 730

Stop-Loss: Rs 634

Britannia Industries | CMP: Rs 6,038

Britannia has witnessed strong consolidation in the Rs 5,750–6,000 zone, which aligns well with the 20-, 50-, and 100-DEMA levels, as depicted on the chart, indicating a strong support base. Additionally, a breakout above the Ichimoku cloud is visible, suggesting a positive shift in trend. Throughout this consolidation phase, the RSI has managed to hold above the 50 level, reflecting underlying strength and a bullish momentum bias.

Overall, this confluence of technical signals points to an improving price structure and increases the likelihood of further upside in the near term. Traders may consider entering long positions in the Rs 6,050–6,000 zone, with a target of Rs 6,400.

Strategy: Buy

Target: Rs 6,400

Stop-Loss: Rs 5,800

Vidnyan S Sawant, Head of Research at GEPL Capital

Ashok Leyland | CMP: Rs 166.82

Ashok Leyland is showing strong relative strength versus the Nifty Auto index and the broader market. On the weekly chart, the stock maintains a higher-top, higher-bottom structure and has broken out of its rising channel from 2021, indicating trend acceleration. A rising MACD further confirms sustained bullish momentum.

Strategy: Buy

Target: Rs 178

Stop-Loss: Rs 160

Netweb Technologies India | CMP: Rs 3,331.2

Netweb Technologies has shown a bullish mean reversion from the 26-week EMA in the prior week, which also aligns with the 50% Fibonacci retracement level, strengthening the support zone. On the daily chart, the stock has broken out of a falling wedge pattern, reinforcing the bullish outlook. Additionally, the Stochastic indicator has triggered a bullish crossover, indicating a likely pickup in momentum ahead.

Strategy: Buy

Target: Rs 3,700

Stop-Loss: Rs 3,200

UPL | CMP: Rs 765.65

UPL continues to maintain a higher-top, higher-bottom structure on higher timeframes and is comfortably sustaining above its key 12-week and 26-week EMAs, indicating a strong and positive trend. On the daily chart, the stock has broken out of a flag-and-pole pattern, signaling trend continuation. Momentum remains supportive, with the RSI at 64, reinforcing the sustained bullish outlook.

Strategy: Buy

Target: Rs 818

Stop-Loss: Rs 734

Gujarat Pipavav Port | CMP: Rs 191.21

Gujarat Pipavav Port continues to trade well above its key 12-week and 26-week EMAs, remaining firmly in a rising trend and displaying strong relative strength. On the daily timeframe, the stock is forming a sequence of higher bottoms, indicating healthy accumulation. The MACD is trending upward, further reinforcing the sustainability of the bullish trend.

Strategy: Buy

Target: Rs 207

Stop-Loss: Rs 184