Equity benchmarks remained under pressure for the second consecutive session, correcting half a percent on September 22 with negative market breadth. A total of 1,790 shares were backed by bears, against 1,037 shares that were supported by bulls on the NSE. Rangebound trading may continue, and Monday's low could be crucial for further direction. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
UCO Bank | CMP: Rs 30.7
UCO Bank has recently confirmed the completion of Wave 2 on the weekly Elliott Wave structure, as highlighted in the chart, setting the stage for a potential Wave 3 rally. Supporting this outlook, bullish divergence is observed on both the MACD line and histogram, indicating improving momentum.
Alongside this, a noticeable surge in volumes and a trendline breakout further validate the strength of the ongoing move. These technical signals collectively point to a favourable risk-reward setup. Traders may consider entering long positions in the Rs 31–30 zone, with an upside target of 36.
Strategy: Buy
Target: Rs 36
Stop-Loss: Rs 28
Hindustan Zinc | CMP: Rs 459.25
Hindustan Zinc has recently broken out of its consolidation range and is now trading comfortably above it, signalling renewed strength in price action. On the weekly chart, the stock has registered a bullish crossover on the MACD indicator, which typically indicates a shift in momentum in favour of the bulls. This technical setup suggests the possibility of a further upside move in the coming sessions.
Sustaining above the breakout zone will be key for the continuation of the rally, while any dips toward immediate support levels may attract fresh buying interest. Overall, the trend looks constructive with a positive bias. Traders may consider entering long positions in the Rs 460–450 zone, with an upside target of Rs 505.
Strategy: Buy
Target: Rs 505
Stop-Loss: Rs 430
Sequent Scientific | CMP: Rs 203.59
Sequent has shown encouraging signs on the weekly chart, where a trendline breakout accompanied by a noticeable surge in volumes has been observed. This combination typically signals strong buying interest and validates the breakout’s reliability. Adding to the bullish outlook, the MACD has registered a bullish crossover just above the zero line on the weekly scale, which strengthens the momentum setup and indicates a shift in favour of the bulls. This alignment of price action with supporting indicators suggests that the stock may continue its upward trajectory in the near term.
Overall, the technical structure remains constructive, favouring a sustained bullish move. Traders may consider entering long positions in the Rs 204–200 zone, with a target of Rs 240.
Strategy: Buy
Target: Rs 240
Stop-Loss: Rs 180
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Bajaj Finance | CMP: Rs 1,006.5
Bajaj Finance has provided a breakout from a consolidation due to short covering, and it has been one of the best performers in the NBFC space in recent times. The stock is trading well above its 20-day VWAP (volume-weighted average price) of Rs 950, and it has just inched above its maximum pain level of Rs 1,000, so this is an immediate support range.
The PCR (Put-Call Ratio) has jumped to 0.92 levels now, and the Rs 1,120 strike has the highest Call base, beyond which there will be a further round of up move. So, we advise buying Bajaj Finance Futures in the range of Rs 1,000–1,110.
Strategy: Buy
Target: Rs 1,150, Rs 1,180
Stop-Loss: Rs 965
Tata Motors | CMP: Rs 696.25
Tata Motors has broken its critical support level of Rs 700 and closed below it as well, which is a negative sign in the near term. Overall, the stock has been an underperformer in its sector, and now it has closed below the 20-day VWAP level as well.
Hence, the overall bias has turned negative for the stock. There have been significant Call additions at the higher levels from the Rs 700 to Rs 730 strikes, with the highest Call open interest at the Rs 720 strike. So, the risk-to-reward is quite favourable on the short side. We advise selling Tata Motors Futures in the range of Rs 694–698.
Strategy: Sell
Target: Rs 675, Rs 665
Stop-Loss: Rs 710
United Spirits | CMP: Rs 1,339.9
United Spirits has witnessed a unidirectional fall from Rs 1,650 to Rs 1,280 with an increase in open interest, indicating short build-up, and now there has been a reduction in the open interest, indicating short covering. The stock price has, however, not bounced much, so there is more room left on the upside.
The stock has witnessed Call unwinding at the Rs 1,320 and Rs 1,340 strikes; however, Rs 1,340 to Rs 1,400 strikes still have significant Call base, which may act as resistance. The stock has witnessed Put additions from the Rs 1,300 to Rs 1,340 strikes, so this range will act as support. This increases the probability of a retracement or a bounce-back in the last week of the September series due to short covering. So, we advise buying United Spirits Futures in the range of Rs 1,340–1,350.
Strategy: Buy
Target: Rs 1,400, Rs 1,430
Stop-Loss: Rs 1,295
Vidnyan S Sawant, Head of Research at GEPL Capital
BHEL | CMP: Rs 239.60
Bharat Heavy Electricals on the weekly scale has exhibited a bullish hidden divergence, aligning with the 61.80% Fibonacci retracement level and the 100-week EMA. From this confluence zone, the stock has formed three consecutive bullish candlesticks. On the daily scale, it is trading firmly above the key 12-, 26-, and 50-DEMA levels, underscoring strong trend strength.
Strategy: Buy
Target: Rs 264
Stop-Loss: Rs 230
Belrise Industries | CMP: Rs 154
Since listing, the stock has maintained strong momentum with a higher-high, higher-low structure on the monthly scale. In the prior week, it hit a fresh lifetime high, breaking out of a four-week consolidation with strong volume support. On the daily scale, a base around the 26-day EMA highlights healthy price action, while the MACD in buy mode confirms sustained bullish momentum.
Strategy: Buy
Target: Rs 171
Stop-Loss: Rs 147
Cholamandalam Investment and Finance Company | CMP: Rs 1,630
Cholamandalam Investment has been forming higher bottoms and recently established a base at the 50-week EMA, where the MACD has given a bullish crossover, indicating improving momentum. On the daily scale, the stock has broken its lower-top formation, suggesting continuation of the upward trajectory.
Strategy: Buy
Target: Rs 1,825
Stop-Loss: Rs 1,548
Godawari Power and Ispat | CMP: Rs 263.6
On the weekly scale, GPIL has registered a decisive breakout above the December 2024 swing top, supported by strong volume activity, with volumes surpassing the 20-day average — a sign of robust participation behind the move. On the daily scale, the stock continues to trade firmly above its key 12-, 20-, and 50-DEMA levels, highlighting a well-established bullish trend and reinforcing the potential for sustained upward momentum.
Strategy: Buy
Target: Rs 295
Stop-Loss: Rs 250
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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