Trade Spotlight: How should you trade TCS, Bank of Maharashtra, JSW Steel, UPL, Tata Steel, Indian Bank, and others on December 31?

Top Buy Ideas for December 31

• Experts suggest buying in 9 stocks including TCS, Bank of Maharashtra, JSW Steel, UPL, Tata Steel, and Indian Bank.

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Equity benchmarks finished the session on a flat note on December 30, with bears consistently keeping tight control over market breadth. A total of 1,661 shares declined against 1,198 advancing shares on the NSE. Range-bound trading is likely to continue in the upcoming sessions. Below are some short-term trading ideas to consider:

Amol Athawale, VP Technical Research at Kotak Securities

Bank of India | CMP: Rs 142

After a remarkable upward move, Bank of India has been taking a breather over the last few sessions. The consolidation structure suggests a bullish continuation chart formation. Moreover, the stock comfortably closed above its short-term moving average.

Therefore, the stock is likely to resume its uptrend from current levels in the coming horizon. As long as the stock is trading above Rs 137, the bullish texture is likely to continue, above which the stock could move up to Rs 152.

Strategy: Buy

Target: Rs 152

Stop-Loss: Rs 137

Tata Consultancy Services | CMP: Rs 3,246.8

On the daily charts, after declining from higher levels, TCS has found support at its short-term moving average and witnessed a gradual recovery from lower levels. Therefore, the bullish momentum near the support zone indicates that the downside is restricted, and the stock is expected to witness a further up move from current levels with a favourable risk-reward perspective.

For the next few trading sessions, Rs 3,190 could be the trend-decider level for the bulls. If it sustains above this level, one can expect a further uptrend towards Rs 3,380.

Strategy: Buy

Target: Rs 3,380

Stop-Loss: Rs 3,190

TVS Motor Company | CMP: Rs 3,634.6

After a remarkable upward move on a daily basis, TVS Motor witnessed profit booking at higher levels. Following the recent sell-off, the downward momentum has stalled. Moreover, the stock has found support near its demand zone.

The formation suggests a revival of the uptrend from current levels in the near future. For positional traders, Rs 3,510 would be the decisive level. Trading above this level, the uptrend formation will continue till Rs 3,890. However, if the stock closes below Rs 3,510, traders may prefer to exit long positions.

Strategy: Buy

Target: Rs 3,890

Stop-Loss: Rs 3,510

Vinay Rajani, Senior Technical Research Analyst at HDFC Securities

Bank of Maharashtra | CMP: Rs 60.51

This week, Bank of Maharashtra broke out of a five-week range on the back of above-average volumes. The stock is also trading above the 20-day and 50-day SMAs, and momentum indicators such as the 14-day RSI are in a rising mode and not overbought. This augurs well for the continuation of the uptrend.

Strategy: Buy

Target: Rs 63.25

Stop-Loss: Rs 57.25

JSW Steel | CMP: Rs 1,111.6

JSW Steel has found support at its 200-day DEMA and bounced back with a positive RSI divergence on the daily chart. On the weekly chart, the stock has formed a bullish ‘Harami’ candlestick pattern at the previous swing-high support, which indicates a potential bullish trend reversal on positional charts.

Strategy: Buy

Target: Rs 1,165

Stop-Loss: Rs 1,055

UPL | CMP: Rs 787.35

UPL has broken out from a downward-sloping trendline on the monthly charts. The formation of higher tops and higher bottoms on the weekly and monthly charts, along with the stock trading above all key moving averages, indicates an uptrend across all timeframes.

The weekly RSI is sustaining above 50, indicating a sustained uptrend in the underlying. The MACD is positioned above the signal and zero lines on both the weekly and monthly charts. The stock price has broken out from a consolidation that held for the last seven weeks, with the price rise accompanied by healthy volumes.

Strategy: Buy

Target: Rs 875

Stop-Loss: Rs 690

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Indian Bank | CMP: Rs 809

On the daily chart, Indian Bank has been trading in a broad consolidation range of Rs 764–797 over the past three weeks, indicating a phase of accumulation. In the previous session, the stock surged 3% and confirmed a breakout by closing decisively above the Rs 797 horizontal resistance.

It also registered a close above the 50-day EMA (Exponential Moving Average), backed by a strong surge in volumes, which adds credibility to the breakout. Additionally, the MACD line is crossing above the signal line from below, suggesting strengthening bullish momentum. For now, dips towards Rs 800 level can be used as buying opportunities for a move towards Rs 860.

Strategy: Buy

Target: Rs 860

Stop-Loss: Rs 764

Tata Steel | CMP: Rs 175.8

At the start of the week, Tata Steel rebounded from the middle Bollinger Band near Rs 168, indicating buying interest at lower levels. Since then, prices have been forming higher highs and higher lows, reflecting strengthening bullish sentiment. In the previous session, the stock gained 2% and confirmed a breakout above the upper Bollinger Band, which is a positive sign.

The KST (Know Sure Thing) indicator has already crossed above its signal line (red) and is on the verge of moving above the zero line, which would further reinforce upside momentum. For now, dips can be used as buying opportunities, with upside targets near Rs 184, as long as the Rs 168 mid-band support remains protected on the downside.

Strategy: Buy

Target: Rs 184

Stop-Loss: Rs 168

Jindal Stainless | CMP: Rs 836

On the daily chart, Jindal Stainless found support at its upward-sloping trendline on Monday and witnessed a strong rebound of nearly 9% from those levels. In the previous session, the stock surged over 5% and closed decisively above the crucial Rs 826 resistance, marking its first close above this level since July 2024, which is a strong bullish signal.

Additionally, there has been a significant increase in volumes post August 25, which is acting as a double confirmation. However, due to the sharp rally, the RSI is trading near overbought territory, so buying on dips appears to be a prudent strategy, with nearest support at Rs 805 and upside targets in the Rs 870–880 range.

Strategy: Buy

Target: Rs 870, Rs 880

Stop-Loss: Rs 805