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Last Updated : Sep 16, 2020 09:02 AM IST | Source: Moneycontrol.com

'Choppy trade may continue with 11,250 acting as crucial level; 3 buy ideas for short term'

In case 11,250 is breached, the downside remains open towards 11,000-10,900 zone.

Sacchitanand Uttekar
 
 
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With no major price development off late, we expect market to remain choppy throughout the week. Most of the price-based evidence is pointing towards a broad range action within 11,250-11,750 with 11,550 as its break even zone.

On daily scale, the rebound has been primarily led by banking & pharma sector with broader market continuing to outperform benchmark indices. With SEBI's new norms for multi-cap in focus, it's better to pick selective midcap & smallcap stocks which could provide the necessary alpha in the short term.

In case 11,250 is breached, the downside remains open towards 11,000-10,900 zone which can be participated via banking names which have been underperforming.

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Here is the list of three stocks recommendations for short term:

Sun Pharma: Buy

Positive sector outlook & occurrence of an Engulfing Bullish formation on its daily scale reaffirms the support of its ongoing Broadening formation. We expect the stock to display a strong rebound once above Rs 518 zone. Trading longs could be deployed with a stop below Rs 499 from hereon with an anticipation of a move towards Rs 540 zone.

Indraprastha Gas: Buy

'Bullish Hammer' on its weekly scale reconfirmed the strength of its support been placed around Rs 380 zone. The follow through move resembles like a 'Rising Three' formation on the weekly scale. With its weekly RSi displaying renewed strength IGL could see a fresh breakout from its ongoing declining channel formation. Fresh longs could still be considered with a stop below Rs 405 with an expectation of a move towards Rs 440.

Ceat: Buy

Fresh breakout from its 14-week consolidation is well supported with volumes. The contraction looks like a matured Triangular formation with its probable target zone placed around Rs 1,050 which also coincides with its 200-week EMA. Trading longs should be maintained with a stop below Rs 910 to participate the ongoing momentum towards Rs 1,050.

(The author is DVP – Technical (Equity) at Tradebulls Securities.)

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Sep 16, 2020 09:02 am
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