Trade Spotlight: How should you trade Transformers and Rectifiers, REC, Torrent Power, UNO Minda, IDBI Bank, and others on January 5?

Top Buy Ideas for January 5

• Experts suggest buying 9 stocks including Transformers and Rectifiers, REC, Torrent Power, UNO Minda, IDBI Bank on January 5

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The benchmark indices rallied seven-tenths of a percent to hit a new closing high on January 2, with strong market breadth. About 2,034 shares saw buying interest compared to 830 declining shares on the NSE. Overall, the trend may remain positive despite intermittent consolidation and minor profit booking. Below are some short-term trading ideas to consider:

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

IRCTC | CMP: Rs 695

Since September 2023, Indian Railway Catering and Tourism Corporation has been holding its major support zone of Rs 660–650 levels on a closing basis. Over the past couple of weeks, the stock has rebounded from its support zone along with huge volumes, which signals accumulation at the support zone.

On the daily chart, the stock has experienced a trend reversal, forming a higher tops and bottoms formation. Currently, the stock is sustaining above its 20- and 50-day SMAs, which signifies bullish sentiment. The daily and weekly strength RSI is in positive territory, which signals rising strength.

Strategy: Buy

Target: Rs 730, Rs 750

Stop-Loss: Rs 680

Transformers and Rectifiers (India) | CMP: Rs 336.4

On the daily chart, Transformers and Rectifiers has confirmed a trend reversal, forming a higher top and bottom formation. Over the past one month, huge volumes signify increased participation. The daily and weekly strength RSI is in positive territory, which signals rising strength. Currently, the stock is sustaining above its 20- and 50-day SMAs, which signifies bullish sentiment.

Strategy: Buy

Target: Rs 360, Rs 385

Stop-Loss: Rs 320

REC | CMP: Rs 380.65

On the weekly chart, REC has confirmed a down-sloping trendline breakout at Rs 375 levels on a closing basis. Huge volumes at the breakout zone signify increased participation. The daily Bollinger Band buy signals signify increased momentum.

The daily and weekly strength RSI is in positive territory, which signals rising strength. The stock is well placed above its 20-, 50-, 100-, and 200-day SMAs, which reconfirms the bullish trend.

Strategy: Buy

Target: Rs 405, Rs 430

Stop-Loss: Rs 370

Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One

Rail Vikas Nigam | CMP: Rs 365.85

Rail Vikas Nigam (RVNL) has experienced a strong resurgence over the past weeks, followed by a breather that has retraced nearly 50 percent of the rally. Technically, the counter has witnessed multiple positive crossovers among the significant EMAs, and sustainability above the 200 DSMA after an elongated period of correction represents a trend-reversal scenario from a short- to medium-term perspective. Additionally, the 14-day RSI has shown a positive crossover and MACD signaling a turnaround, adding to the bullish quotient. Hence, we recommend buying RVNL around Rs 360.

Strategy: Buy

Target: Rs 400, Rs 415

Stop-Loss: Rs 340

Torrent Power | CMP: Rs 1,399.4

Torrent Power has shown significant buying pressure from the cluster of EMAs around the Rs 1,300 sub-zone and has surpassed the 200-day SMA, indicating the onset of a counter-trend.

From a technical perspective, the MACD histogram has demonstrated buying momentum, moving above the signal line and creating a positive crossover. Furthermore, the EMAs are approaching positive crossovers, suggesting that this upward momentum is likely to continue in the near future. Hence, we recommend buying Torrent Power around Rs 1,380–1,370.

Strategy: Buy

Target: Rs 1,530, Rs 1,550

Stop-Loss: Rs 1,295

UNO Minda | CMP: Rs 1,321.2

UNO Minda has demonstrated substantial consolidation near its significant EMAs. Additionally, the counter has showcased a symmetrical triangle breakout, backed by rising trading volumes, suggesting growth potential in the forthcoming period. Also, the technical indicators are strongly aligned with the price momentum, indicating a bullish outlook for the near term. Hence, we recommend buying UNO Minda around Rs 1,300.

Strategy: Buy

Target: Rs 1,380, Rs 1,400

Stop-Loss: Rs 1,240

Anshul Jain, Head of Research at Lakshmishree Investments

IDBI Bank | CMP: Rs 114.73

IDBI Bank has delivered a decisive breakout from an exceptionally long 722-week VCP (volatility contraction pattern) structure, with the right side itself forming a 74-week VCP, creating a rare and powerful fractal setup. The breakout near Rs 105 came with volumes nearly eight times the 50-week average, clearly confirming strong institutional participation.

The price had been resting on rising weekly and monthly 10- and 20-EMAs, which acted as a textbook launchpad for the move. The structure signals a transition into a secular bull phase rather than a tactical rally.

Post-breakout, the stock carries an initial upside potential toward Rs 140, and if momentum sustains, a further extension toward Rs 170 appears highly likely. Risk–reward remains favourable as long as the price holds above the breakout zone, with any pullback toward rising averages expected to attract demand rather than supply.

Strategy: Buy

Target: Rs 140

Stop-Loss: Rs 95

Venus Pipes and Tubes | CMP: Rs 1,206.8

Venus Pipes has closed the week on a constructive note, forming a bullish hammer on above-average volumes amid pre-budget rally expectations. The candle has swept the multiple bottom support band of Rs 1,170 to Rs 1,140, signaling a flush of weak hands built over several weeks. This price behaviour points to exhaustion of selling pressure and an improving short-term structure.

A sharp technical rebound toward the 50-week moving average zone of Rs 1,360 to Rs 1,400 now appears highly likely ahead of the budget event. Momentum favours a bounce rather than a trend reversal at this stage. Above Rs 1,400, bulls will shift focus to the triple bottom neckline near Rs 1,640, which remains the next major upside hurdle. Until then, the move should be viewed as a tactical recovery within a broader base-building phase.

Strategy: Buy

Target: Rs 1,400

Stop-Loss: Rs 1,100

SMS Pharmaceuticals | CMP: Rs 326.25

SMS Pharma has finally delivered a decisive breakout from a long-awaited 59-week cup-and-handle formation near the Rs 320 zone, signaling a structural trend shift. The handle was resting firmly on rising 10- and 20-week moving averages, which acted as a clean launchpad for the move. The base shows multiple institutional accumulation candles, highlighting sustained smart money interest ahead of the breakout.

Volume expansion confirms participation and adds credibility to the move. Immediate support now lies in the Rs 300 to Rs 295 band, which also serves as a logical trailing stop and invalidation zone. On the upside, the pattern projects a swift move toward the Rs 430 zone, comfortably surpassing the prior all-time high of Rs 397.45. Risk–reward remains favourable as long as the stock holds above the breakout base, with pullbacks likely to attract buyers rather than sellers.

Strategy: Buy

Target: Rs 430

Stop-Loss: Rs 295