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Sudeep Shah of SBI Securities has recommended one largecap and one midcap for January. “The stock has given a 28-week consolidation breakout on a weekly scale. This breakout is confirmed by above 50-week average volume. The weekly RSI is surged above 60 mark and it is in a rising mode,” he explains reasons for betting on Eicher Motors.
In case of Jubilant Ingrevia, “as the stock is trading at all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum,” said the Head of Technical and Derivative Research at SBI Securities in an interview to Moneycontrol.
Further, on the ONGC and Oil India which have surged more than 9% and 13% respectively last week, he said both stocks have surged above their short-term moving averages, which is a bullish sign. The momentum indicators and oscillators also suggest strong bullish momentum, he added.
Do you think the Nifty 50 is likely to hit the 25,000 mark in the next couple of weeks?
The benchmark index Nifty has wrapped up the calendar year 2024 on a strong note, marking its 9th consecutive year of positive returns. Additionally, 2024 stands out as the 8th straight year in which the index has recorded a fresh all-time high. Despite experiencing profit booking in the final quarter, Nifty ended 2024 at the 23,644 level, reflecting an 8.80% gain for the year. The standout heroes of the year were undoubtedly Nifty Midcap 100 and Nifty Small Cap 100, delivering substantial returns of 23.86% and 23.94% respectively in CY 2024.
Carrying this momentum forward, Nifty established a solid base around its 200-day EMA (Exponential Moving Average) zone, kicking off the calendar year 2025 on a bullish note. The rally extended into the weekly expiry session, driving the index above its 20-day EMA. However, minor profit booking on Friday resulted in the formation of a High Wave-like candle on the weekly chart, signaling some indecision. Despite this, the underlying trend remains strong, with bulls actively defending key support levels. Dips are likely to attract buying interest, reinforcing the overall positive outlook for the near term.
Going ahead, the 50 and 100-day EMA zone of 24,200-24,250 will act as an immediate hurdle for the index. Any sustainable move above the level of 24,250 will lead to a sharp upside rally upto the 24,400 level. The major reversal in the index will come above the 24,500 level. In that case, the index is likely to test the level of 24,800.
On the downside, the support has shifted higher in the zone of 23,850-23,800 level.
Are you a buyer in ONGC and Oil India?
Yes, both the stocks have seen strong bullish momentum in the last two trading sessions along with the robust volume. Also, both stocks have surged above their short-term moving averages, which is a bullish sign. The momentum indicators and oscillators also suggest strong bullish momentum.
Do you see more upside potential in Avenue Supermarts?
On a daily scale, the stock has given the Descending Broadening Wedge pattern breakout on Friday. This breakout is confirmed by robust volume. Also, the stock has surged above its 20 and 50-day EMA level. Further, the daily RSI (Relative Strength Index) is in bullish territory, and it is in rising mode.
Hence, we believe it is likely to continue its northward journey in the next couple of trading sessions. As per the measure rule of Broadening Wedge pattern, the upside target is placed at Rs 4,260 level.
What are your top two stock picks for January?
The stock has given a 28-week consolidation breakout on a weekly scale. This breakout is confirmed by above 50-week average volume. In addition, it has formed a sizeable bullish candle on a weekly scale. The weekly RSI is surged above 60 mark and it is in a rising mode. Hence, we recommend accumulating this stock in the zone of Rs 5,310-5,250 level with the stop-loss of Rs 5.020 level. On the upside, it is likely to test the level of Rs 5,750, followed by Rs 5,900 in the short term.
The stock is on the verge of giving consolidation breakout on a daily scale. As the stock is trading at all-time high, all the moving averages and momentum-based indicators are suggesting strong bullish momentum. Hence, we recommend accumulating this stock in the zone of Rs 860-850 level with the stop-loss of Rs 810 level. On the upside, it is likely to test the level of Rs 940, followed by Rs 970 in the short term.
Do you see a Tweezer Bottom pattern in the FMCG index on the monthly charts? If so, does this indicate it is time to start accumulating the sector?
Yes, the index has formed a Tweezer Bottom pattern on a monthly scale, and on a daily scale, it has formed an Adam & Adam Double bottom pattern. However, the confirmation of both patterns will come if the index surges above 58,800 level. Hence, we recommend accumulating stocks from this sector if the index surges above 58,800 level.
In that case, as per the measure rule of Double bottom pattern, the upside target is placed at 62,107 level.
Are the charts signaling a rally in the Nifty Pharma index?
Following a sharp rally in the last few trading sessions, we anticipate the Nifty Pharma index may enter a consolidation phase over the next 4-5 sessions. However, the broader trend remains bullish, with the index likely to resume its upward trajectory if it sustains above the 23,700 level.
Is it a good time to buy Tata Motors and REC?
Both Tata Motors and REC have shown strong bullish momentum over the last two trading sessions, supported by robust volumes. However, given the current chart structure, we recommend waiting for 2-3 trading sessions before considering entry into these stocks.
