Investors looking for fresh trading ideas on Wednesday, January 7, 2026, received clear guidance from a leading market expert. Mehul Kothari, DVP of Technical Research at Anand Rathi Shares and Stock Brokers, has identified three stocks that present compelling buy opportunities based on their technical chart structures. The recommended picks are Varun Beverages Ltd, Havells India Ltd, and the Indian Renewable Energy Development Agency (IREDA).
Detailed Technical Outlook for Each Pick
Kothari's analysis provides specific entry levels, stop losses, and price targets for each stock, with a suggested holding period of 30 to 60 days. The recommendations are grounded in classical technical analysis patterns and momentum indicator readings.
Varun Beverages: Riding the Uptrend Resumption
Varun Beverages Ltd (VBL) is positioned for a continuation of its primary upward move. The stock has registered a decisive breakout from a key trendline and a triangle pattern on its charts. Analysts suggest buying in the price band of ₹485 to ₹490, with a protective stop loss set at ₹460. The anticipated target for this trade is ₹550.
The momentum setup appears supportive. The Relative Strength Index (RSI) has also broken out and is hovering near the 55 level, indicating improving strength without entering overbought territory. A bullish crossover on the Moving Average Convergence Divergence (MACD) indicator further reinforces the positive outlook. Adding credibility to the breakout, the stock has closed above its quarterly Volume Weighted Average Price (VWAP), a level often monitored by institutional investors.
Havells: Momentum Breakout in Play
Havells India is exhibiting a clear breakout from a price trendline, accompanied by a simultaneous breakout in its RSI indicator. This dual breakout signals a strengthening technical structure. The recommended strategy is to buy near ₹1430–₹1455, keeping a stop loss at ₹1375. The price target for this setup is ₹1560.
Momentum indicators are aligning positively. The RSI is trending higher, and the MACD has confirmed a bullish crossover. Furthermore, the stock's price action shows it has closed above its 10- and 20-day Exponential Moving Averages (DEMA) and has reclaimed its monthly VWAP. This combination enhances the credibility of the emerging uptrend and suggests improved participation from larger market players.
IREDA: A Promising Reversal Pattern
The Indian Renewable Energy Development Agency (IREDA) is showing encouraging signs of a potential trend reversal. The stock has formed a well-defined double bottom pattern, a classic reversal formation. The trade idea is to buy in the range of ₹142–₹145, with a stop loss below the pattern at ₹135. The target for this reversal play is ₹162.
The pattern is supported by bullish divergence, where the price made lower lows but the momentum indicator did not, hinting at weakening selling pressure. The stock has closed above its 10-DEMA and a prior swing high, which strengthens the bullish argument. Additional positive signals include an RSI trendline breakout and a bullish MACD crossover, improving the probability of the stock moving towards higher levels.
Key Takeaways for Traders
The recommendations from Anand Rathi's technical research desk highlight specific actionable levels for traders. All three picks—Varun Beverages, Havells, and IREDA—are backed by identifiable chart patterns and confirming momentum indicators. The common time horizon of one to two months suggests these are viewed as short-to-medium term tactical trades rather than long-term investments.
It is crucial to remember that stock market recommendations and views are the expert's own. Investors are advised to consider their own risk appetite and conduct independent research or consult with a financial advisor before making any investment decisions. Market conditions can change rapidly, and technical levels are dynamic.
