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The benchmark indices showed a healthy recovery from the day’s low, with the Nifty 50 closing flat with a positive bias on December 31. The market breadth was positive, as a total of 1,572 shares gained against 931 declining shares on the NSE. The market is expected to remain rangebound until it decisively rebounds and sustains above the 200-day SMA. Below are some trading ideas for the near term:
Amol Athawale, VP Technical Research at Kotak Securities
Balkrishna Industries | CMP: Rs 2,910
Balkrishna Industries has shown a robust rally from the lower levels in recent sessions. Moreover, there is a fresh breakout along with decent volume from the ascending triangle chart formation on the daily scale. As a result, the comfortable close above its breakout zone suggests that upward momentum is likely to persist in the coming sessions.
Strategy: Buy
Target: Rs 3,110
Stop-Loss: Rs 2,810
United Breweries | CMP: Rs 2,037
On the daily and weekly scale, United Breweries is in a rising channel chart formation with a higher high and higher low series pattern. The stock witnessed a steady recovery from lower levels. Additionally, technical indicators like the ADX (Average Directional Index) and RSI (Relative Strength Index) are indicating further upside potential, which could boost the bullish momentum in the near future.
Strategy: Buy
Target: Rs 2,180
Stop-Loss: Rs 1,970
Zydus Lifesciences | CMP: Rs 971.7
Zydus Life is in an accumulation zone where it has been trading in a rangebound mode for many sessions. The texture of the chart formation and the RSI indicator suggest that the stock is likely to break out from the rectangle formation, leading to a new leg of upward movement in the near term.
Strategy: Buy
Target: Rs 1,040
Stop-Loss: Rs 935
Ashish Kyal, CMT, Founder / CEO of Waves Strategy Advisors
Sun Pharmaceutical Industries | CMP: Rs 1,886.35
The Pharma sector has outperformed other sectors in the past four consecutive trading sessions, with Sun Pharmaceutical in sync with this performance. The stock has been trading within an upward-sloping channel for over a year. It has not closed below its prior day’s low since December 18, keeping the daily tone on the positive side as long as no close occurs below the previous day’s low. The Bollinger Bands have recently started expanding, which is a positive sign. In summary, the current trend for Sun Pharmaceutical is positive. A breach above the Rs 1,920 level can lift prices towards Rs 2,000, followed by Rs 2,090, as long as Rs 1,835 holds as support on the downside.
Strategy: Buy
Target: Rs 2,000, Rs 2,090
Stop-Loss: Rs 1,835
Jubilant Foodworks | CMP: Rs 718.1
Jubilant Foodworks has protected its prior day’s low since December 20, which keeps the daily bias in favour of the bulls. The stock has also formed a Cup and Handle pattern. A price close above Rs 712 confirms the breakout of this pattern. The ADX on the daily chart indicates strong momentum, with readings at 30.30 (above 25), supporting the continuation of the bullish trend. A breach above Rs 725 can lift prices toward Rs 750, followed by Rs 780. On the downside, Rs 690 is the nearest support.
Strategy: Buy
Target: Rs 750, Rs 780
Stop-Loss: Rs 690
Kalyan Jewellers India | CMP: Rs 766.25
Kalyan Jewellers was consolidating near the Ichimoku cloud support. Recently, the stock broke out of the consolidation and saw a bounce on the upside. Volumes have started picking up, which is a positive sign. Prices are now approaching the previous swing high, located near Rs 784. A decisive breakout above Rs 784 is needed for the bullish momentum to continue. In summary, the trend for this stock is bullish. A break above Rs 784 can push the price higher toward Rs 810-820, as long as Rs 745 holds on the downside.
Strategy: Buy
Target: Rs 784, Rs 820
Stop-Loss: Rs 745
Om Mehra, Technical Analyst at Samco Securities
JSW Holdings | CMP: Rs 15,346.5
JSW Holdings is showing promising signs of a breakout as it wraps up 2024 with renewed momentum. The stock surged 5% in the last trading session of the year, supported by strong price action and increasing volumes. After a sharp rally in November, which pushed the stock to Rs 18,000, it entered a consolidation phase with robust support around Rs 14,000. The recent upsurge points to a potential breakout, with the Supertrend indicator continuing to signal an uptrend, further strengthening the bullish outlook. The rising volume further supports the continuation of the upward trend. Immediate support is seen in the Rs 14,500-14,400 zone. Hence, one can initiate a long position at the CMP (current market price).
Strategy: Buy
Target: Rs 17,200
Stop-Loss: Rs 14,250
Escorts Kubota | CMP: Rs 3,332.55
Escorts Kubota has shown a promising recovery from its recent lows around the Rs 3,150 level, which acted as a strong demand zone, supported by robust volumes. The stock has managed to reclaim the Rs 3,300 mark and was up 2.03% on Tuesday, reflecting renewed buying interest. A higher high-higher low formation in the hourly chart signals the beginning of a potential uptrend. A break above Rs 3,360, backed by sustained volumes, could open the gates for further rally. Hence, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 3,600
Stop-Loss: Rs 3,180
Muthoot Finance | CMP: Rs 2,136.15
Muthoot Finance is exhibiting strong bullish signals, with higher highs and higher lows indicating a sustained upward trend. The stock is trading near its 52-week high, signaling strong upward momentum. Strong volume further supports the bullish trend. The RSI above 65 and the recent bullish engulfing pattern strengthen this outlook. Additionally, the MACD (Moving Average Convergence Divergence) bullish crossover adds further validation to the positive momentum. Hence, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 2,350
Stop-Loss: Rs 2,020
