- US tariff drop to 18% reignites momentum across the NSE.
- Eight stocks are breaking out of consolidation with strong EMA and volume signals.
- Key technical setups: trendline breakouts, bullish RSI divergences, MACD crossovers.
- Sector‑wide implications: IT services, chemicals, automotive, energy, and industrials stand to benefit.
- Clear entry, target, and stop‑loss levels for each recommendation.
You missed the trade‑deal rally—now's the moment to act.
Why the India‑US Tariff Cut Sparks a Fresh Upswing in Indian Equities
On February 2 the NSE rebounded more than 1%, erasing much of the prior day’s sell‑off. The rally is not a random bounce; it is anchored by the United States slashing tariffs on Indian imports from 50% to 18%. Lower duties improve export margins for Indian manufacturers, boost demand for services that support global supply chains, and free up capital for domestic investment. In practice, that translates into stronger earnings forecasts for sectors ranging from IT‑enabled services to petrochemicals.
Technical Blueprint: How EMA, RSI, and MACD Align for a Bullish Play
Across the board, the highlighted stocks share three technical hallmarks:
- EMA dominance: Prices sit above the 20‑, 50‑, 100‑ and 200‑day exponential moving averages, a classic sign of a sustained uptrend.
- Volume expansion: Breakouts are confirmed by higher-than‑average traded volume, indicating genuine buying pressure.
- Momentum catalysts: Bullish divergences on the 14‑period RSI, MACD crossovers above the zero line, and stochastic reversals near the 30‑level all point to accelerating upside.
These indicators are not isolated; they converge to form a high‑probability “buy‑on‑breakout” environment.
eClerx Services – IT‑Enabled Growth Engine
eClerx has shattered a falling trendline while the 14‑period RSI surged above 50. The stock now trades above all major EMAs, with each line sloping upward. Volume spikes on the breakout add conviction.
- Entry: Market price
- Target: ₹5,350
- Stop‑Loss: ₹4,549
Acutaas Chemicals – Chemical Play Riding Export Incentives
A classic box‑range breakout on January 29, accompanied by a shake‑out of weak hands, set the stage for a new leg up. All EMAs are in bullish alignment, confirming a higher‑high, higher‑low structure.
- Entry: Market price
- Target: ₹2,250
- Stop‑Loss: ₹1,780
JK Tyre & Industries – Wheels Turning Faster
After a prolonged consolidation, JK Tyre broke above its recent high of ₹528.95 on expanding volume. The stock remains above its 20‑, 50‑, 100‑ and 200‑day EMAs, signaling a robust uptrend.
- Entry: Break above ₹530
- Target: ₹578
- Stop‑Loss: ₹506
Blue Star – Air‑Conditioning Giant Nearing a Breakout
Blue Star is perched on a strong support band of ₹1,800‑₹1,830. A nascent bullish flag suggests a short‑term rally, while a decisive breach of ₹1,850 could trigger a run toward ₹1,980‑₹2,000.
- Entry: Around ₹1,840
- Target: ₹1,995
- Stop‑Loss: ₹1,782
Mahindra & Mahindra – Auto & Farm Equipment Beneficiary
The stock rebounded off its 200‑day DEMA, a dynamic support zone that also aligns with a historic breakout corridor. A bullish RSI divergence on the hourly chart signals weakening downside momentum.
- Entry: ₹3,340‑₹3,470
- Target: ₹3,650
- Stop‑Loss: ₹3,340
Indian Oil Corporation – Energy Tailwinds
IOC formed a solid base near its 100‑day DEMA and executed a clean trendline breakout. MACD bullish crossover and a stochastic rise from the 30‑zone confirm the momentum shift.
- Entry: ₹163‑₹165
- Target: ₹172
- Stop‑Loss: ₹159
Supreme Industries – Consumer Durables on the Rise
The Williams Alligator indicator now shows all three lines aligned, a textbook sign that the “Alligator” is opening its mouth. A MACD crossover above zero adds extra bullish force.
- Entry: ₹3,550‑₹3,600
- Target: ₹4,000
- Stop‑Loss: ₹3,350
Ashok Leyland – Commercial Vehicle Momentum
Weekly charts reveal a steady uptrend above the 5‑week and 12‑week EMAs, with typical 5‑7% pullbacks that quickly resume higher lows. MACD stays firmly positive.
- Entry: Around ₹190
- Target: ₹214
- Stop‑Loss: ₹186
Mangalore Refinery & Petrochemicals – Oil‑Based Growth
MRPL’s monthly resistance from the 2008‑2017 peaks now acts as support, confirming a bullish polarity shift. Weekly higher bottoms and a MACD crossover underline the momentum.
- Entry: ₹168‑₹177
- Target: ₹199
- Stop‑Loss: ₹168
GE Vernova T&D India – Power‑Transmission Upside
After 25 weeks of range‑bound action, the stock attempted an upside breakout, trading above its 12‑day and 26‑day DEMAs. The longer‑term 20‑week and 50‑week EMAs stay in bullish alignment.
- Entry: Break above ₹3,300
- Target: ₹3,553
- Stop‑Loss: ₹3,158
Investor Playbook – Bull vs. Bear Cases
Bull Case: The tariff reduction accelerates export‑linked earnings, reinforcing the technical breakouts. Momentum indicators stay bullish, and the broader market breadth turns positive, allowing the listed stocks to run higher.
Bear Case: A sudden reversal in global trade sentiment or a macro‑shock (e.g., oil price spike) could compress margins, pulling the stocks back into consolidation. In that scenario, the stop‑loss levels become critical protection points.
Overall, the confluence of macro‑level tariff relief and micro‑level technical strength makes these ten equities compelling short‑term plays. Align your entries with the breakout levels, respect the stop‑losses, and you could capture a sizable portion of the post‑deal upside.