Buying interest has been sustained in the market for three consecutive days, with the Nifty 50 rising more than 500 points from Monday's low and closing on January 30 with a 0.4 percent gain. The market breadth also remained positive, with about 1,395 shares advancing compared to 1,166 shares declining on the NSE. The momentum is expected to continue in the upcoming sessions. Below are some trading ideas for the near term:
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
UPL | CMP: Rs 567
UPL has broken out from a descending triangle and has also given a golden crossover, which may confirm a change in trend to the upside. The MACD (Moving Average Convergence Divergence) indicator is on the verge of giving a bullish crossover, which could further validate the upward momentum.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 551
United Breweries | CMP: Rs 2,124.4
United Breweries has broken out of a Pole and Flag pattern on the daily chart and formed a long bullish candlestick pattern. The RSI (Relative Strength Index) indicator has turned upward, supporting the bullish sentiment.
Strategy: Buy
Target: Rs 2,215
Stop-Loss: Rs 2,070
Mandar Bhojane, Equity Research Analyst at Choice Broking
Bharti Airtel | CMP: Rs 1,640.75
Bharti Airtel has recently formed a symmetrical triangle pattern on the daily chart, indicating a potential breakout and a shift in market sentiment. The price is consolidating just below the breakout level, suggesting strong bullish momentum. A notable increase in trading volume further supports the likelihood of an upward move.
The RSI is at 56.38, trending upwards, and reflecting strengthening bullish momentum. Additionally, the Stochastic RSI has shown a positive crossover, reinforcing the bullish outlook. These technical indicators suggest that the stock is gaining momentum for a potential rally.
A decisive close above Rs 1,650 could pave the way for short-term targets of Rs 1,730 and Rs 1,790. On the downside, immediate support is at Rs 1,620, offering an attractive buying opportunity on dips. To manage risk effectively, traders are advised to set a stop-loss at Rs 1,590 to safeguard against potential market reversals.
Strategy: Buy
Target: Rs 1,730, Rs 1,790
Stop-Loss: Rs 1,590
Zensar Technologies | CMP: Rs 860
Zensar Technologies has recently broken out of its daily range. This breakout, coupled with a notable increase in trading volume, signals strong buying interest and the potential for further upward momentum.
Technical indicators reinforce the bullish outlook. The RSI is trending upwards at 64.19, indicating strengthening momentum, while the Stochastic RSI has confirmed a positive crossover, suggesting additional upside potential.
If the price sustains above Rs 870, it could pave the way for short-term targets of Rs 1,040 and Rs 1,080. On the downside, immediate support is at Rs 810, offering a potential buying opportunity on dips. To manage risk effectively, a stop-loss at Rs 785 is recommended to protect against unforeseen market reversals.
Strategy: Buy
Target: Rs 1,040, Rs 1,080
Stop-Loss: Rs 785
Indian Railway Finance Corporation | CMP: Rs 148.23
IRFC is nearing a potential breakout from the descending trendline on the daily chart, signaling a possible bullish shift. The stock has been consolidating around the breakout level, suggesting that buyers are accumulating positions. A notable increase in trading volume reflects growing buying interest, which supports the likelihood of continued upward momentum.
Technical indicators align with this positive outlook. The RSI is rising at 56.2, indicating increasing strength, while the Stochastic RSI has confirmed a positive crossover, further reinforcing the potential for an upward move.
If the stock sustains above Rs 150, it could pave the way for a rally toward the near-term targets of Rs 170 and Rs 180. On the downside, Rs 143 acts as a critical support level, offering an appealing buying opportunity on dips. To manage risk effectively, a stop-loss at Rs 138 is recommended to protect against unforeseen market reversals.
Strategy: Buy
Target: Rs 170, Rs 180
Stop-Loss: Rs 138
Kunal Kamble, Senior Technical Research Analyst at Bonanza
SRF | CMP: Rs 2,831
SRF has recently broken out of a rectangle pattern on the higher side, signaling a bullish move. This breakout, coupled with increasing volume during the buying days, reflects growing buyer interest. The stock is trading above its 21-day Exponential Moving Average (EMA), confirming the bullish trend.
Notably, after a brief cool-down, the RSI has once again started moving upward, signaling renewed momentum in the stock. Additionally, the Directional Movement Index (DMI) shows that the bulls are firmly in control, with +DI above -DI. These factors combined suggest that SRF is poised for further upward movement, making it a strong candidate for investors looking to capitalize on potential gains.
Strategy: Buy
Target: Rs 3,200, Rs 3,340
Stop-Loss: Rs 2,630
Dabur India | CMP: Rs 533.7
Dabur India has recently given a breakout from a rectangle pattern on the higher side, signaling potential bullish momentum. This breakout suggests that the stock is likely to continue moving upwards, with strong support from increasing volume during the buying days, reflecting growing buyer interest. The price is currently trading above its 21-day EMA, reinforcing the bullish trend, while there was a positive crossover in RSI, indicating strengthening momentum.
Additionally, the DMI shows that the bulls are in control, with +DI above -DI, further supporting the bullish outlook. Together, these indicators suggest that Dabur could experience further upside in the near term, making it an attractive stock for investors.
Strategy: Buy
Target: Rs 560, Rs 580
Stop-Loss: Rs 515-500
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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