Trade Spotlight: How should you trade Varun Beverages, Kalyan Jewellers, Persistent, Birlasoft, BSE, and others on January 8?

Top Trading Ideas for January 8

• Experts Pick for January 8: Varun Beverages, Kalyan Jewellers, Persistent, Birlasoft, BSE

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Equity benchmarks remained under pressure for three consecutive sessions, with the Nifty 50 falling 38 points on January 7 amid neutral market breadth. About 1,465 shares advanced compared to 1,402 declining shares on the NSE. The market is likely to consolidate further with a negative bias. Below are some short-term trading ideas to consider:

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Varun Beverages | CMP: Rs 509.7

Varun Beverages has recently witnessed a breakout from a symmetrical triangle pattern on the daily chart and has also moved above its 200-DMA, placed near Rs 485, which is now expected to act as immediate support. The breakout is supported by higher-than-average volumes, reinforcing the bullish outlook.

Additionally, the stock is trading comfortably above both its short-term and long-term moving averages, indicating strong underlying momentum. From a derivatives perspective, the build-up of fresh long positions further strengthens the positive bias. Considering the overall technical setup, the stock appears well-positioned to move towards the Rs 555 level in the near term.

Strategy: Buy

Target: Rs 555

Stop-Loss: Rs 485

Kalyan Jewellers India | CMP: 520.75

Kalyan Jewellers is forming a strong base and has recently witnessed a breakout from a multi-month falling trendline. The sharp price up-move is backed by significantly higher volumes, which validates the bullish setup. Additionally, the stock has reclaimed its long-term 200-DMA, placed around Rs 518, further strengthening the positive structure.

Momentum indicators are also supportive, with the RSI moving above the 60 mark and the MACD generating a bullish crossover, indicating improving upward momentum. Overall, the technical structure suggests the stock is well-placed to move towards the Rs 580 level in the near term.

Strategy: Buy

Target: Rs 580

Stop-Loss: Rs 490

Jio Financial Services | CMP: Rs 303.5

Jio Financial Services has formed a strong base after taking support at its 200-DMA, currently placed near the Rs 295 level. It has also formed a bullish engulfing candlestick pattern on the daily chart, signalling a potential bullish reversal. The recent price action is supported by higher-than-average volumes, which further strengthens the positive outlook. Additionally, a fresh bullish crossover on the MACD indicates improving momentum.

On the downside, immediate support from the rising trendline is placed around the Rs 290 level. With these technical factors in place, the stock appears well-positioned to break out of the triangle pattern and move towards the Rs 330 level in the near term.

Strategy: Buy

Target: Rs 330

Stop-Loss: Rs 290

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

Persistent Systems | CMP: Rs 6,513.5

Persistent Systems has formed a strong bullish candle on the daily chart, highlighting a resurgence in buying momentum. The 50-day EMA continues to act as a reliable dynamic support, with the stock repeatedly testing and holding this zone since December. The Persistent/Nifty IT ratio chart has delivered a consolidation breakout, indicating potential outperformance versus its sector.

Momentum indicators remain supportive, with the RSI settling slightly above 60 and DI+ crossing above DI– on the ADX. With prices approaching a key resistance zone, the overall setup suggests a breakout could be imminent. Hence, we recommend accumulating the stock in the zone of Rs 6,520–6,470 with a stop-loss of Rs 6,290. On the upside, it is likely to test the Rs 6,970 level in the short term.

Strategy: Buy

Target: Rs 6,970

Stop-Loss: Rs 6,290

Manappuram Finance | CMP: Rs 319.9

Following a decisive breakout above its downward-sloping trendline on December 19, Manappuram Finance witnessed a strong follow-through rally over the next three sessions. The stock then consolidated in a tight Rs 319–305 range and formed a Bullish Flag pattern. On Wednesday, the stock delivered a flag breakout, reflecting renewed buying interest.

A rising ADX signals strengthening bullish momentum, while prices remain comfortably above key moving averages. Given the constructive consolidation and improving momentum, the stock appears well-placed to extend its ongoing up-move in the near term. Hence, we recommend accumulating the stock in the zone of Rs 320–317 with a stop-loss of Rs 308. On the upside, it is likely to test the Rs 340 level in the short term.

Strategy: Buy

Target: Rs 340

Stop-Loss: Rs 308

Birlasoft | CMP: Rs 443.4

Birlasoft broke out of its downward-sloping trendline on December 2 and witnessed a strong follow-through move, rallying above its 200-day EMA and advancing towards the Rs 459 level. Subsequently, profit-booking pulled the stock back to the 200-day EMA, a key long-term trend indicator that often acts as a strong demand zone. A sharp rebound on Wednesday, with the stock closing over 5.25 percent higher, signals fresh buying interest.

The DI+ crossover above DI– on the ADX reflects strengthening bullish momentum, while a close above the Bollinger Band midline further reinforces the positive near-term outlook. Hence, we recommend accumulating the stock in the zone of Rs 445–440 with a stop-loss of Rs 430. On the upside, it is likely to test the Rs 475 level in the short term.

Strategy: Buy

Target: Rs 475

Stop-Loss: Rs Rs 430

Rupak De, Senior Technical Analyst at LKP Securities

BSE | CMP: Rs 2,744.9

BSE has broken out of a downward consolidation on the daily chart, signalling a shift in momentum. The price continues to hold above the 21 EMA, and both the 21 EMA and 50 EMA are in a bullish crossover.

Additionally, the RSI is in a bullish crossover and trending higher. In the short term, the stock may continue to remain strong, with upside potential towards Rs 2,900. Support is placed at Rs 2,684, below which a correction cannot be ruled out.

Strategy: Buy

Target: Rs 2,900

Stop-Loss: Rs 2,684

Bharat Petroleum Corporation | CMP: Rs 368.2

BPCL has slipped from its recent rising consolidation, pointing towards emerging weakness. The decline has been accompanied by healthy volumes, indicating active selling pressure. The RSI has also broken down from consolidation, reinforcing the bearish view. In the near term, the stock may drift lower towards Rs 354, while resistance is seen around Rs 373.

Strategy: Sell

Target: Rs 354

Stop-Loss: Rs 373