Trade Spotlight: How should you trade Tata Elxsi, Colgate Palmolive, Shriram Finance, Canara Bank, CCL Products, and others on January 20?

Top Trading Ideas for January 20

• Experts pick top 10 trading ideas for January 20 including Tata Elxsi, Colgate Palmolive, Shriram Finance, Canara Bank, CCL Products

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Equity benchmarks declined four-tenths of a percent on January 19, with market breadth consistently favouring bears. About 2,190 shares were under pressure against 728 shares that advanced on the NSE. The market is expected to consolidate and trade within the previous week’s range. Below are some short-term trading ideas to consider:

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

Bajaj Auto | CMP: Rs 9,429.5

Bajaj Auto has entered a healthy pullback phase after breaking out above its long-term falling trendline, as visible on the chart. Such pullbacks are often considered constructive, as they allow prices to consolidate and attract fresh buying interest without damaging the overall trend structure.

From an indicator perspective, the Directional Movement Index (DMI) shows the positive line clearly in control, suggesting that buying strength remains dominant. The Average Directional Index (ADX) is holding above the 20 level, indicating that the trend is gaining stability and strength rather than weakening.

Meanwhile, the MACD remains above the zero line, reflecting positive momentum and supporting the continuation of the bullish trend. Based on this technical combination, the pullback is viewed as an opportunity rather than a sign of weakness. Traders may consider entering long positions in the Rs 9,450–9,400 zone.

Strategy: Buy

Target: Rs 10,200

Stop-Loss: Rs 9,000

Balkrishna Industries | CMP: Rs 2,431.6

Balkrishna Industries has shown a strong improvement in its technical structure, supported by multiple bullish signals. The 9- and 26-DEMA have delivered a bullish crossover, indicating a shift in short-term momentum in favour of the bulls. In addition, the stock has confirmed a breakout above its falling trendline, suggesting a change in the medium-term trend.

Momentum indicators further strengthen the positive outlook. The DMI has recorded a bullish crossover, reflecting increasing buying pressure, while the MACD has moved above the zero line, highlighting a transition into positive momentum territory. Traders may consider entering long positions in the Rs 2,410–2,400 zone.

Strategy: Buy

Target: Rs 2,600

Stop-Loss: Rs 2,300

Tata Elxsi | CMP: Rs 5,563

Tata Elxsi has successfully retested its breakout zone, as highlighted on the chart, confirming the strength and sustainability of the recent breakout. Notably, volumes are picking up near lower levels, indicating strong accumulation interest and reinforcing the positive price structure. The breakout above the falling trendline further supports a shift in the medium-term trend from bearish to bullish.

On the momentum front, the MACD is positioned above the zero line, signalling positive momentum, while the DMI continues to reflect bullish dominance. Additionally, the ADX is holding above the 25 level, suggesting that the emerging trend is gaining strength and reliability. Traders may consider entering long positions in the Rs 5,600–5,500 zone.

Strategy: Buy

Target: Rs 6,250

Stop-Loss: Rs 5,200

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

Colgate Palmolive India | CMP: Rs 2,178

Colgate Palmolive has provided a breakout from the falling trendline, accompanied by a decrease in open interest, indicating short covering. There had been heavy short positions in the stock, and it had declined nearly 50 percent from its all-time high. Significant positive divergence is visible on both daily and weekly charts, indicating a higher probability of continued short covering.

The risk-to-reward ratio is clearly in favour of the bulls; hence, one may initiate long positions in this series. Options data indicates that the Rs 2,200 strike has the highest Call base, and a close above this level could lead to further upward momentum. Buy Colgate Palmolive futures in the range of Rs 2,170–2,190.

Strategy: Buy

Target: Rs 2,250, Rs 2,300

Stop-Loss: Rs 2,120

Mankind Pharma | CMP: Rs 2,117.2

Mankind Pharma has been forming lower tops and lower bottoms, with an increase in open interest clearly indicating short build-up in the near term. Hence, the short-term trend remains negative. A bounce witnessed a few weeks ago was largely due to short covering, and once that move ended, the stock resumed its primary downtrend, with fresh additions on the short side.

There is a huge Call base at the Rs 2,200 strike, and the stock has closed significantly below this level. The maximum pain is also at the Rs 2,200 level. Until this level is decisively crossed, the short-term trend is likely to remain weak. Any bounce should be utilised as a selling opportunity. Sell Mankind Pharma futures in the range of Rs 2,120–2,140.

Strategy: Sell

Target: Rs 2,060, Rs 2,020

Stop-Loss: Rs 2,180

HCL Technologies | CMP: Rs 1,716.8

HCL Tech has been moving higher following its Q3 results, indicating a bullish short-term trend. There has been a decrease in open interest along with a rise in price, suggesting short covering. Large-cap IT stocks have largely witnessed short build-up, with heavyweights such as Wipro, TCS, and Infosys still carrying substantial short positions. Meanwhile, midcap IT stocks have been outperforming large caps.

Despite this, HCL Tech has emerged as an outperformer within the large-cap IT space and has been gradually forming higher tops and higher bottoms. As per options data, once the stock closes above the Rs 1,720 level, which has the highest Call base, it is likely to move towards the Rs 1,800 level. Buy HCL Tech futures in the range of Rs 1,700–1,720.

Strategy: Buy

Target: Rs 1,760, Rs 1,800

Stop-Loss: Rs 1,645

Vidnyan S Sawant, Head of Research at GEPL Capital

Shriram Finance | CMP: Rs 1,010.35

Shriram Finance continues to exhibit a robust structural uptrend across timeframes, characterised by a classical higher-top and higher-bottom price formation. On the weekly timeframe, the stock is firmly placed above its key 12- and 26-week EMAs, underscoring strong trend strength.

The MACD momentum indicator is trending higher, reflecting acceleration in upside momentum and reinforcing the bullish bias. On the daily chart, the stock has displayed a bullish mean reversion from the 12-day DEMA, further validating the positive outlook and suggesting continuation of the prevailing uptrend.

Strategy: Buy

Target: Rs 1,081

Stop-Loss: Rs 970

Canara Bank | CMP: Rs 156.86

Canara Bank has recently displayed strong positive structural developments on the higher timeframe. During the October series, the stock witnessed a decisive breakout above its multi-year swing highs of 2010 and 2024, marking a transition into uncharted territory.

The stock is firmly sustaining above its 12-, 26-, and 50-period DEMA, while continuing to form higher tops and higher bottoms, highlighting strong relative strength amid prevailing market volatility. Momentum indicators further validate this strength, with the MACD remaining in buy mode, reinforcing that the ongoing uptrend is well supported by positive momentum.

Strategy: Buy

Target: Rs 172

Stop-Loss: Rs 150

Bharat Electronics | CMP: Rs 412.8

BEL has been in a robust long-term uptrend since 2020, consistently demonstrating resilience on the monthly timeframe. On the weekly chart, the stock continues to form higher bottoms and is currently consolidating around its 26-week EMA, indicating healthy price digestion within an ongoing uptrend.

On the daily timeframe, BEL maintains a higher-top and higher-bottom structure. Notably, during recent pullbacks, the stock has displayed a repetitive price behaviour wherein corrections tend to remain contained at around 4 percent, after which the stock resumes its upward trajectory. This recurring pattern reinforces the strength of the prevailing trend.

Strategy: Buy

Target: Rs 447

Stop-Loss: Rs 400

CCL Products India | CMP: Rs 983.75

CCL Products has been on a sustained upward trajectory since 2020, forming a sequence of higher tops and higher bottoms on the monthly timeframe, a classic indication of a long-term bullish trend. On the weekly chart, the stock has exhibited a bullish mean reversion from the 26-week EMA, while the Stochastic oscillator remains in buy mode, reinforcing the positive outlook.

On the daily timeframe, the stock has witnessed a reversal from the 2025 gap support, further validating the underlying strength and confirming a constructive near-term sentiment.

Strategy: Buy

Target: Rs 1,101

Stop-Loss: Rs 944