The Indian market has kept moving higher even with tough global conditions, and the Nifty 50 just broke a bullish cup‑handle pattern. That technical signal points to more upside, and a few well‑chosen stocks could profit in the next couple of weeks.
Market Overview
The Nifty 50 recently hit an all‑time high of 26,340 and rose 1.10% for the week ending 2 January, marking the second week of gains. Despite challenges like US tariffs, a weaker rupee, soft earnings and large foreign outflows, the Sensex is up about 9% and the Nifty over 10% for 2025. This makes it the tenth straight year of positive returns for Indian equities, helped by strong buying from domestic institutions and retail investors.
Nifty Technical Outlook
After opening the week with a gap‑up, the index struggled to stay above the 26,300 resistance and filled that gap, leading to a mild correction. The 25,950–25,850 range acted as a key support level, and as long as the index holds above 25,700 on a closing basis, downside risk stays limited.
The recent price action created a classic bullish cup‑and‑handle pattern, suggesting a potential move of about 400 points toward the 26,500–26,600 zone if the current momentum continues. For now, 26,100 is an important support; a close below that could weaken the bullish setup, so a selective, stock‑specific approach is advised.
Short‑Term Stock Picks (1–2 weeks)
Varun Beverages (VBL)
- Previous close: ₹493.80
- Buy range: ₹495 – ₹485
- Target price: ₹550
- Stop loss: ₹460
- Technical signals: clear trendline & triangle breakout, RSI around 55 (strengthening but not overbought), bullish MACD crossover, price above quarterly VWAP.
Buy on dips within the range and aim for the ₹550 target while keeping the stop loss below ₹460.
Havells India (HAVELLS)
- Previous close: ₹1,439.90
- Buy range: ₹1,445 – ₹1,430
- Target price: ₹1,560
- Stop loss: ₹1,365
- Technical signals: RSI breakout, bullish MACD crossover, price above 10‑ and 20‑day DEMA, and reclaimed monthly VWAP.
Enter on dips in the stated range and target ₹1,560, protecting the trade with a stop loss under ₹1,365.
Indian Renewable Energy Development Agency (IREDA)
- Previous close: ₹146.64
- Buy range: ₹147 – ₹143
- Target price: ₹162
- Stop loss: ₹136
- Technical signals: double‑bottom pattern, bullish divergence, price above 10‑day DEMA, RSI trendline breakout, bullish MACD crossover, close above previous swing high.
Buy on dips within the range, aim for ₹162, and set a stop loss at ₹136 to limit risk.
Key Takeaway
With the Nifty showing a strong bullish pattern, these three quality stocks offer good short‑term upside. Keep an eye on the support levels mentioned and use the stop‑loss points to manage risk.
Remember, this is just an opinion, not a prediction. Do your own research and consider consulting a certified financial advisor before making any trades.