Bulls have been on the go, touching new highs in every session. Benchmark index Nifty on January 13 retraced to 14,440 levels but found support near 38.20 percent Fibonacci  (stock market futures) retracement from its previous intermediate low of 14,039 and witnessed a sharp recovery in the second half of the trading session.

India VIX rose 1.94 percent from 22.85 to 23.29 levels. Volatility is moving upwards because of rising Call implied volatility (IV) and now it needs to cool down below 20 zones to form the higher market base.

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This week, prices have closed above the resistance of the upper band of the rising channel (stock market futures)  pattern on a weekly interval.

Daily RSI (14) has closed above the 80 levels which is an extremely overbought zone. Previously on December 18, 2020, when daily RSI reached near 80 levels, Nifty witnessed a (stock market futures)  sharp single-day fall in the next immediate trading session.


Here are three buy calls for the short-term:

Power Grid Corporation of India | LTP: Rs 205 | Target price: Rs 226 | Stop loss: Rs 193 | Upside: 10%

This stock, on the weekly chart, has witnessed a symmetrical triangle breakout and is (stock market futures)  currently trading above its line of the polarity of the said pattern.

The previous week's strong green candle has almost engulfed its last six weeks' candle which can be called an extremely positive breakout.

Prices are above all major exponential moving averages which indicate that bulls are likely to keep charge in the upcoming sessions as well.

Momentum oscillator RSI (14) is reading in a higher bottom formation and is currently reading above 62 levels with positive crossover on the cards.


Federal Bank | LTP: Rs 74.75 | Target price: Rs 82 | Stop loss: Rs 71 | Upside: 10%

On January 7, this stock finally managed to surpass the multiple resistance zones around Rs 72 –74, which eventually confirmed a trendline breakout on the weekly interval.

Since the breakout, the stock has been consolidating (stock market futures)  above its trendline support and is likely to have completed its throwback.

The recent leg of strong up-move is also supported by strong volumes and it also resembles a strong consolidation breakout.

Prices are trading above their exponential moving averages (50 and 100) on the weekly chart.


Aditya Birla Fashion and Retail | LTP: Rs 180.70 | Target price: Rs 195 | Stop loss: Rs 171 | Upside: 8%

After a prolonged consolidation, this stock has witnessed a rectangle pattern breakout (stock market futures)  on the daily interval.

This week, it has given a fresh breakout above the key resistance level of Rs 170.

Additionally, the stock has managed to close above its 50 and 100-day exponential moving averages on the daily chart which is placed above 165 levels.

Positive divergences on secondary oscillators with rising volumes also support the next up-move in the prices.

RSI (14) has also witnessed horizontal trendline breakout above 60 levels with bullish crossover on the daily timeframe.