The market saw some profit booking on January 3 after gains seen in the previous couple of sessions, falling eight-tenths of a percent. Overall breadth was slightly in favour of bulls with about 1,295 shares advancing against 1,213 declining shares on the NSE. The benchmark indices are expected to consolidate further until getting strongly back above all key moving averages. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Sanstar | CMP: Rs 130.25
Over the past couple of weeks, Sanstar has made a strong rebound from its 61.8% Fibonacci retracement level at Rs 117. This buying support is accompanied by rising trading volumes, indicating increased investor participation. Additionally, both the daily and weekly RSI (Relative Strength Index) are positioned positively, confirming the stock's growing strength. The stock is currently trading above its 20-day and 50-day simple moving averages (SMA), which are also trending upward alongside the price increase, reinforcing the bullish trend. Investors should consider buying, holding, and accumulating this stock.
Strategy: Buy
Target: Rs 560, Rs 585
Stop-Loss: Rs 503
Hilton Metal Forging | CMP: Rs 114.27
Hilton Metal Forging has experienced a trend reversal on both the daily and weekly charts, forming a series of higher tops and bottoms. Currently, the stock has decisively broken through multiple resistance zones around Rs 108 level over the past three weeks, indicating a positive outlook. It is trading well above its 20, 50, 100, and 200-day SMAs, which are also rising alongside the stock price, further confirming the bullish trend. Additionally, the RSI for daily, weekly, and monthly time frames is in a favourable position, supporting the notion of increasing strength across all periods. Investors are advised to buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 130, Rs 150
Stop-Loss: Rs 108
Shanthi Gears | CMP: Rs 526
On Friday, Shanthi Gears experienced a significant gain of 4.57%, successfully breaking out of the "down-sloping channel" it had been in for the past three months. This movement indicates a potential short-term trend reversal. The breakout was accompanied by high trading volumes, signaling increased investor participation. Additionally, the stock remains comfortably above its 20-day SMA, further supporting the bullish trend. Investors are encouraged to buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 560, Rs 585
Stop-Loss: Rs 503
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Marico | CMP: Rs 661
Marico has seen a consolidation breakout in the past week, leading it to elope above the cluster of its significant EMAs (Exponential Moving Averages) on the daily chart. Also, the consolidation breakout coincides with the 50% Fibonacci retracement of the recent correction in the counter, adding a bullish quotient to the undertone. Also, on the technical parameters, the 14-period RSI witnessed a positive crossover with the recent price action, suggesting a continuation of the bullish trend. Hence, we recommend buying Marico around Rs 650.
Strategy: Buy
Target: Rs 690, Rs 700
Stop-Loss: Rs 620
KEC International | CMP: Rs 1,223.80
KEC International has been into a secular uptrend, hovering well above all its significant EMAs on the daily time frame chart structure. Also, with the recent consolidation, the counter seems to be on the verge of a sloping trendline breakout, indicating a further potential uptrend in the near period. On the technical front, MACD (Moving Average Convergence Divergence) and other oscillators hover in a comfortable zone, adding an inherent bullish stance in the counter. Hence, we recommend buying KEC around Rs 1,210.
Strategy: Rs 1,320, Rs 1,340
Stop-Loss: Rs 1,145
Tata Motors | CMP: Rs 790.4
Tata Motors has witnessed a steep correction of nearly 40 percent from its peak of Rs 1,179 in the past five months and has plummeted to oversold terrain. However, in the last couple of trading sessions, the counter has gained some of its lost grounds, suggesting an initial sign of reversal. Technically, the counter has surged above the 20 DEMA after a long haul, which implies the initial positive development in the counter. From a risk-reward point of view, the counter is placed at a lucrative zone and is most likely to continue its upward move in the near future. Hence, we recommend buying Tata Motors around Rs 780.
Strategy: Buy
Target: Rs 850, Rs 870
Stop-Loss: Rs 735
Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox
Fortis Healthcare | CMP: Rs 732
Fortis Healthcare has exhibited a strong breakout above Rs 725 resistance level and is maintaining its position despite broader market weakness. The stock is moving within a well-defined upward channel and remains comfortably above all its key EMAs, reinforcing its bullish trend. Momentum indicators support the positive outlook, with the RSI suggesting strength and the Average Directional Index (ADX) indicating a robust trend. Additionally, trading volumes have been consistently healthy over the past week, further validating investor interest.
Based on the technical structure, Fortis Healthcare appears well-positioned for an upward move, with a near-term target of Rs 760. However, a breach below Rs 700 could negate this view and warrant caution.
Strategy: Buy
Target: Rs 760
Stop-Loss: Rs 700
Aavas Financiers | CMP: Rs 1,701.35
Aavas Financiers has witnessed a notable breakout above Rs 1,690 level. It is trading above key EMAs — the 20, 50, 100, and 200-day EMAs — indicating robust bullish momentum. The recent session marked a breakout above the 20, 50, and 100 EMAs, further solidifying its technical strength. Momentum indicators add to the positive outlook. The RSI stands at a healthy 62, reflecting strong buying interest, while the ADX shows a positive crossover, highlighting strengthening trend dynamics. The past week's volume surge supports this bullish sentiment. With these technical signals, Aavas appears poised for a potential upside toward Rs 1,760–Rs 1,800. However, a decisive move below Rs 1,640 would negate this view.
Strategy: Buy
Target: Rs 1,760, Rs 1,800
Stop-Loss: Rs 1,640
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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