The benchmark indices closed the volatile session with moderate gains on August 27, with 1,292 shares advancing and 1,075 shares declining on the NSE. The consolidation is expected to continue, although the bulls remain in control. Below are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Century Textiles and Industries | CMP: Rs 2,511.80
In the previous session, Century Textiles gained 5.7 percent with a spike in volumes, which supports the positive momentum. On the daily chart, prices found support near Rs 2,075 levels and bounced back to the upside. Since then, not a single candle has closed below its previous day’s low, indicating increasing bullishness in the stock. Currently trading at lifetime high levels, one should avoid trying to catch tops and instead use dips as a buying opportunity. In summary, the trend for Century Textiles is positive. Use dips towards the Rs 2,450 level as a buying opportunity with targets of Rs 2,650-2,700, as long as Rs 2,390 holds on the downside.
Strategy: Buy
Target: Rs 2,650, Rs 2,700
Stop-Loss: Rs 2,390
KFin Technologies | CMP: Rs 1,148
In the previous session, KFin Technologies witnessed a sharp rally of 13.75 percent. The stock made a lifetime high near the Rs 1,189 level. On the daily chart, prices showed a breakout after 10 sessions of consolidation and have been trading above mid Bollinger Bands since July 26, suggesting strength and affirming the bullish stance. Additionally, the ADX (Average Directional Index) is currently trading above 25, around 52, which indicates that good momentum is expected to continue. In summary, the trend for KFin Technologies is bullish. One can adopt a buy-on-dips approach with a target of Rs 1,200 followed by Rs 1,240, as long as Rs 1,090 remains protected on the downside.
Strategy: Buy
Target: Rs 1,200, Rs 1,240
Stop-Loss: Rs 1,090
ICICI Prudential Life Insurance Company | CMP: Rs 269.25
ADF Foods has been moving higher, closing with a massive gain of 7.76 percent in the previous session. The price closed above the Rs 260 level, confirming a breakout from a rounding bottom pattern. The ADX, showing a reading of 25.65, supports the trend, indicating a trending market. The closest support is placed at Rs 255. In summary, the trend for this stock is positive. Use dips towards Rs 265-267 as a buying opportunity for a move towards Rs 290-295, as long as Rs 255 holds on the downside.
Strategy: Buy
Target: Rs 290, Rs 295
Stop-Loss: Rs 255
Om Mehra, Technical Analyst at Samco Securities
Castrol India | CMP: Rs 274.85
On the daily chart, Castrol India formed a bullish candle with higher volumes, signaling strong momentum. The price action has been confined within a rectangular range in recent sessions, and a close above this range suggests continued strength. The stock is trading above its 20 DMA (Days Moving Average), with a bullish crossover in the daily MACD (Moving Average Convergence Divergence), further underlining the positive outlook. Based on this technical structure, one can initiate a long position at the current market price (CMP) of Rs 274.85, targeting Rs 305. A stop-loss can be kept at Rs 260.
Strategy: Rs 305
Stop-Loss: Rs 260
Birlasoft | CMP: Rs 646.35
Birlasoft, which was in a consolidation phase, is now showing a gradual upward trend with a strong base and the formation of a double bottom. A minor resistance around Rs 650 presents a key level to watch; breaking this level could trigger further gains. The strong volume participation and the stock sustaining above its 20 DMA confirm the bullish trend. Based on this technical structure, one can initiate a long position at the CMP of Rs 646.35, targeting Rs 700.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 610
ICICI Prudential Life Insurance Company | CMP: Rs 744.15
ICICI Prudential Life Insurance Company stock is forming higher highs and higher lows, indicating a sustained uptrend. It is positioned well above its short-term (20-day) moving average, with the RSI (Relative Strength Index) comfortably holding at the 60 level. Moreover, a noticeable increase in volume accompanies the stock's upward movement, further confirming the bullish outlook. The recent formation of a Bullish Engulfing pattern on the daily chart reaffirms this positive setup. Based on this technical structure, one can initiate a long position at a CMP of Rs 744.15, targeting Rs 790.
Strategy: Buy
Target: Rs 790
Stop-Loss: Rs 715
Riyank Arora, Technical Analyst at Mehta Equities
Syngene International | CMP: Rs 826.30
Syngene is exhibiting robust momentum, bolstered by a recent uptick in trading volumes, with an RSI (14) of 55 indicating strength. The stock is likely to extend its upward trajectory towards targets of Rs 880 to Rs 900. However, it has witnessed some profit booking at higher levels and is now approaching a major support zone, making the current level a strategic buying opportunity. A stringent stop-loss at Rs 810 is advised to mitigate risk while leveraging the ongoing positive trend.
Strategy: Buy
Target: Rs 880, Rs 900
Stop-Loss: Rs 810
Jindal Steel & Power | CMP: Rs 968.8
Jindal Steel is demonstrating a solid upward trend, with momentum underpinned by increasing volumes and an RSI (14) of 52, reflecting a balanced yet bullish outlook. The stock is strategically positioned to advance towards targets of Rs 1,010 and Rs 1,026. A strict stop-loss at Rs 940 is recommended to manage downside risk while optimizing potential returns.
Strategy: Buy
Target: Rs 1,010, Rs 1,026
Stop-Loss: Rs 940
Grasim Industries | CMP: Rs 2,699.9
Grasim is showing encouraging momentum, supported by a recent rise in volumes, with an RSI (14) of 53, suggesting steady upward movement. The stock is approaching its AVWAP (anchored volume-weighted average price) support zone, making it well-positioned for an upward movement towards targets of Rs 2,800 and Rs 2,825. It is advisable to consider entry around Rs 2,675, with a strict stop-loss at Rs 2,625 to safeguard against potential downside, ensuring a balanced approach to capitalize on the anticipated gains.
Strategy: Buy
Target: Rs 2,800, Rs 2,825
Stop-Loss: Rs 2,625
Dixon Technologies | CMP: Rs 13,227.55
Dixon Technologies has recently broken out above the Rs 12,879 mark, with an RSI (14) near 67, reflecting strong momentum. The stock is currently experiencing a pullback towards its support zone, presenting a promising buying opportunity. It is advisable to buy on declines, with a strict stop-loss at Rs 12,750 to manage risk, aiming for a target of Rs 14,000.
Strategy: Buy
Target: Rs 14,000
Stop-Loss: Rs 12,750
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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