Hot Stocks | Technical charts show Britannia, Tech Mahindra and Lupin can gain up to 10%

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Nilesh Jain

The market continued to lose for the third consecutive week. However, Nifty has found support near 8,800 levels and a small recovery was seen.

Due to the recovery, the Nifty index formed a hammer candlestick pattern with a long lower shadow which is considered as a trend reversal pattern.

So, we might see some pullback towards 9,200 levels which is a major resistance level and if Nifty manages to sustain above the same, then we can expect a continuation of a current pullback towards 9,350 and then 9,500 levels.

On the contrary, If Nifty breaks below 9,000, then it may retest 8,800 levels.

In this truncated week, we have F&O expiry for the May series. The options data indicates that the maximum Put base is placed at 9,000 followed by 8,800 strikes.

We have also seen fresh Put writing in 9,000 and 8,800 Put strikes, which are likely to act as a support zone.

The Call writers were active in 9,300 and 9,500 strikes, where 9,500 holds the second-highest open interest.

So continuous call writing at 9,500 hints that Nifty may find it difficult to surpass 9,500 in the May series.

The options data indicates a broader range of 8,800 to 9,500. Based on the data, we are expecting some broader consolidation this week.

However, the broader structure continues to remain weak as Nifty is making a lower top and lower bottom formation.

We can expect Nifty to test 8,600 levels once this pullback gets over. The formation will be negated if Nifty takes out 9,600 decisively which is a previous swing high.

So, as long as Nifty trades below these levels, every bounce should be utilised as a selling opportunity.

The volatility index India, VIX, fell 15 percent to end near 32 levels. The cooling-off in the volatility is giving comfort to the bulls and thus, we can expect some stability and pullback this week.

Bank Nifty continued its underperformance and breached its psychological support of 18,000 levels.

We have seen a build-up of a short position throughout last week. So, now if the Bank Nifty takes out 18,000 levels on the higher side, then a short-covering rally towards 19,000 can't be ruled out.

However, the broader structure continues to remain weak as long as it trades below 20,000 levels. The immediate support now is placed at 17,000 level and below that it can retest the previous swing low of 16,100 levels.

Here are three buy calls for the next 3-4 weeks:

Britannia Industries | Buy | LTP: Rs 3,180 | Target price: Rs 3,450 | Stop loss: Rs 3,040 | Upside: 8%

On the daily chart, the stock has witnessed some pullback post-breakout from the levels of Rs 2,900 and now after retesting the breakout levels, it has again started its up move.

It is also taking the support at its 21-DMA on the daily chart which is currently placed at Rs 3,080.

So based on the above rationale, we expect Britannia to test the upper end of the broadening formation as visible on the chart.

The placement of weekly RSI and MACD indicates towards fresh upside in the counter.

Tech Mahindra | Buy | LTP: Rs 529.35 | Target price: Rs 581 | Stop loss: 501 | Upside: 10%

The monthly chart of Tech Mahindra shows that the recent crack in the stock stopped exactly at the 78.6 percent retracement of the rally which started in the year 2017.

The support of this retracement coincides with the 100 months EMA which is strong support for the coming weeks.

Also, there is a placement of a rising trendline which indicates the possibility of turnaround from here on.

The monthly RSI is hovering near the support zone which has been intact over a period of 10 years. Thus the above-mentioned rationale hints towards the base formation in Tech Mahindra.

Lupin | Buy | LTP: Rs 892.75 | Target price: Rs 970 | Stop loss: Rs 850 | Upside: 9%

The entire pharma pack has been an outperformer for the last few weeks. In line with that, Lupin also underwent a sharp recovery from the zone of Rs 500 and is now trading above Rs 800 levels.

During the process, the stock has managed to close well above its short term and long term moving average which is a sign of strength.

Also, we are witnessing a trendline breakout and that adds more conviction for the bullish biased.

(The author is Derivative and Technical analyst at Anand Rathi)

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.