Trade Spotlight: How should you trade United Breweries, UPL, Dabur, SRF, IRFC, Zensar Technologies and others on January 31?

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.