The benchmark indices maintained their northward journey for the second consecutive session, with the Nifty 50 rising nearly 1 percent on January 29. Even the market breadth turned positive after being negative in the past few sessions, as about 2,152 shares advanced against 406 shares that fell on the NSE. The market is expected to see consolidation after the recent rally. Below are some trading ideas for the near term:
Vidnyan S Sawant, Head of Research at GEPL Capital
Zensar Technologies | CMP: Rs 850.50
Despite market volatility, Zensar Technologies has demonstrated strong resilience, exhibiting high relative strength. On the monthly scale, the stock continues its upward trend, with the current month witnessing a breakout from a six-month consolidation phase, reinforcing its robust momentum. Trading above the key 12-week and 26-week EMAs (Exponential Moving Averages), Zensar Technologies remains in a bullish structure. Additionally, the MACD (Moving Average Convergence Divergence) momentum indicator has shown a bullish crossover, signaling a likely continuation of the stock’s upward trajectory.
Strategy: Buy
Target: Rs 1,011
Stop-Loss: Rs 790
Avanti Feeds | CMP: Rs 698
On the monthly timeframe, Avanti Feeds has exhibited a robust structural shift, with the prior resistance from 2022 now acting as a support zone. This shift signifies a classic change in polarity on a higher timeframe, underscoring the stock's bullish potential. On the weekly timeframe, since April 2023, the stock has been forming higher tops and higher bottoms, highlighting a consistent uptrend.
On the daily timeframe, the stock has formed a base around the 200-day EMA, reinforcing its bullish price structure across multiple timeframes. From an indicator perspective, the MACD momentum study shows a bullish crossover, while the RSI (Relative Strength Index) remains above 60 across timeframes, indicating strong and sustained bullish momentum.
Strategy: Buy
Target: Rs 808
Stop-Loss: Rs 648
Mahindra and Mahindra | CMP: Rs 2,924.35
M&M remains in a classic bullish trend on the monthly scale, showing strong resilience despite market volatility. The stock has been consolidating within a tight range for six months, indicating high relative strength. On the weekly scale, it is witnessing a pullback from the lower range of the congestion zone, suggesting a continuation of its uptrend. Additionally, the RSI indicator is exhibiting a bullish hidden divergence, signaling a potential acceleration in momentum.
Strategy: Buy
Target: Rs 3,314
Stop-Loss: Rs 2,727
Time Technoplast | CMP: Rs 387.85
Time Technoplast remains in a rising trend, with the current month witnessing a 20% correction from its swing high. Notably, since January 2024, the stock has exhibited a repetitive price pattern, typically correcting by 17-25% before surging approximately 40%, indicating a setup for a strong upward move. On the weekly scale, the stock has demonstrated a change in polarity, where the prior resistance from July 2024 is now acting as a support level, further reinforcing its bullish outlook.
Strategy: Buy
Target: Rs 469
Stop-Loss: Rs 363
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
Eicher Motors | CMP: Rs 5,182.9
Eicher Motors has broken out of a Bullish Flag pattern on the hourly charts and resumed the next leg of its upmove after taking support at the 20-day moving average (Rs 5,113). The momentum indicator has shown a positive crossover, which is a buy signal. We expect the stock to retest its previous swing high.
Strategy: Buy
Target: Rs 5,385
Stop-Loss: Rs 5,080
SBI Life Insurance Company | CMP: Rs 1,460.9
SBI Life has found buying interest from the 78.6% Fibonacci retracement level of the previous rise and resumed its upmove. It has formed a strong bullish candle on the daily charts, engulfing the price action of the previous three sessions. We expect the stock to continue with its positive momentum over the next few trading sessions.
Strategy: Buy
Target: Rs 1,525
Stop-Loss: Rs 1,435
Riyank Arora, Technical Analyst at Mehta Equities
Indian Energy Exchange | CMP: Rs 179
Indian Energy Exchange (IEX) has given a strong breakout above its immediate resistance mark of Rs 175 and closed well above the same. With RSI (14) going above 55, the stock is showing strong signs of momentum and strength. We are expecting upside targets of Rs 192 and above to come in on the stock. A strict stop-loss is, however, advised at Rs 170 to manage risk effectively on this trade.
Strategy: Buy
Target: Rs 192
Stop-Loss: Rs 170
TVS Motor Company | CMP: Rs 2,464.75
TVS Motor has given a good breakout above the trendline resistance mark of Rs 2,410 and successfully managed to close above the same. The previous two trading sessions saw a sharp spike in volumes, confirming the breakout in share prices. With RSI (14) being around 60 and witnessing a good up-tick, we expect an upside target of Rs 2,600 and above. A strict stop-loss should be kept near Rs 2,400 to manage risk effectively.
Strategy: Buy
Target: Rs 2,600
Stop-Loss: Rs 2,400
Granules India | CMP: Rs 534.8
Granules India has made a bullish candlestick pattern at its immediate support mark of Rs 522.65 and formed a bullish Harami candlestick pattern on its daily time frame charts. With the RSI showing good reversal signs from lower levels, the stock is indicating potential upside from here. We recommend a buy in Granules with a strict stop-loss at Tuesday's session's low of Rs 502 for potential upside targets of Rs 560 and Rs 565.
Strategy: Buy
Target: Rs 560, Rs 565
Stop-Loss: Rs 510
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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