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M&M and ACC among top 10 short-term trading ideas for the next 3-4 weeks

All Nifty 50 components are trading above their 200 days SMA, highlighting robust market breadth which gauges the inherent strength of the market, suggest experts.

January 11, 2021 / 09:56 AM IST
 
 
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Indian market rallied by about 2 percent each for the week ended January 7 but bulls helped benchmark indices to conquer crucial resistance levels. The Nifty50 climbed above 14,300 levels while the S&P BSE Sensex inched closer towards 49,000.

The big support came from foreign institutional investors (FIIs) which have poured in more than Rs 9,000 crore in the cash segment of the Indian equity markets so far in January.

Positive global cues, the rollout of the vaccine in many parts of the globe including India, stable microdata as well as strong expectations with regards to December quarter results fuelled sentiment.

As we inch closer towards 14,500-14,600 the big support for the index is placed at 14,150-14000 levels. It is still buy on dips market as long as the index holds above 14K suggest experts.

“As we are in uncharted territory, momentum traders should look for upward levels step by step. As of now, 14400-14550 are the levels to watch,” Sneha Seth, Derivatives Research Analyst, Angel Broking Ltd told Moneycontrol.

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“On the flip side, the cluster of supports is clearly visible at every 150 points. 14300-14150-14000 to be seen as key supports,” she said.

The broader market which also hit fresh record highs in the previous week will be in focus, suggest experts. The weekly price action formed a sizable bull candle carrying a higher high over the 10th consecutive week, indicating an extension of upward momentum.

Currently, all Nifty 50 components are trading above their 200 days SMA, highlighting robust market breadth which gauges the inherent strength of the market, suggest experts.

“The rejuvenation of upward momentum backed by across sector participation signifies inherent strength that makes us confident to revise our target towards 14600 in coming weeks,” Dharmesh Shah, Head – Technical, ICICI direct told Moneycontrol.

“In the process, we expect broader market to relatively outperform the benchmark as Midcap index clocked a fresh all-time high after three years, highlighting revived buying demand,” he said. Shah further added that support is now seen at 13800.

We have collated a list of top 10 trading ideas by experts for the next 3-4 weeks:

Expert: Sneha Seth, Derivatives Research Analyst, Angel Broking Ltd

M&M: Buy| LTP: Rs 770| Target: Rs 810| Stop Loss: Rs 737| Upside 5%

Recently, M&M surpassed the resistance around 760-765 with decent volumes. We have also observed writing in 740-760 put strikes. Hence, expect the extension of this up move towards 810; traders can buy this counter with a strict stop loss of 737.

ACC: Buy| LTP: Rs 1760| Target: Rs 1870| Stop Loss: Rs 1694| Upside 6%

Recently, ACC slipped towards the support around the falling trend line in the weekly chart. This also coincides with the support at 200-SMA (weekly chart).

In the up move, we also saw decent longs with consistent unwinding in ATM call options. We advised buy on dip strategy for the target of Rs 1,870 and a stop loss can be placed below Rs 1,694.

Torrent Pharma: Buy| LTP: Rs 2850| Target: Rs 2930| Stop Loss: Rs 2800| Upside 3%

Torrent Pharma rallied almost 3 percent due to short covering on Friday. At the same time, meaningful unwinding was seen in the 2800 call option that holds the highest open interest concentration which indicates further strength. Traders can go long for the targets of 2930-2940.

Expert: Gaurav Garg, Head Research, CapitalVia Global Research Limited

Hero MotoCorp: Buy| LTP: Rs 3159| buy above 3165| Stop Loss: Rs 3063| Target: Rs 3310| Upside 5%

The stock has given a consolidation breakout on the daily chart and managed to close above 3150, with the recent swing in the auto sector this seems to be a good pick.

Ajanta Pharma: Buy above 1835| LTP: Rs 1782| Stop Loss: Rs 1748| Target: Rs 1965| Upside 12%

The stock seems to be on a bullish rally and gave a breakout on the daily chart, the recent surge in the Pharma sector is expected to channel volume into this stock.

Maruti Suzuki: Buy above 8060| LTP: Rs 8015| Target: Rs 9575| Stop Loss: Rs 7640| Upside 19%

The stock has given breakout above the monthly level and the momentum in the automobile sector suggests an impending bullish rally.

Brokerage: SMC Global Securities Ltd

Axis Bank: Buy| LTP: Rs 672| Target: Rs 750| Stop Loss: Rs 630| Upside 11%

The stock closed at Rs 672.70 on 08th January 2021. It made a 52-week low at Rs 286 on 25th March 2020 and a 52-week high of Rs. 760.70 on 12th February 2020.

The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 539.72. The short term, medium-term, and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts.

Apart from this, it has formed a “Bull Flag” pattern on charts, which is bullish in nature. Last week, the stock has given the pattern breakout along with high volumes and also has managed to close above the same so buying momentum may continue for coming days.

Therefore, one can buy in the range of Rs 660-665 levels for the upside target of 730-750 levels with a stop loss below Rs 630.

Marico Limited: Buy| LTP: Rs 424| Target: Rs 465| Stop Loss: Rs 400| Upside 10%

The stock closed at Rs 424.70 on 08th January 2021. It made a 52-week low of Rs 234 on 23rd March 2020 and a 52-week high of Rs. 425.80 on 08th January 2021.

The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 364.96. After registering a yearly low of 235 levels, the stock recovered sharply and is now trading in higher highs and higher lows sort of “Rising Channel” on weekly charts.

Apart from this, the stock has formed an “Inverted Head and Shoulder” pattern on weekly charts and has given the neckline breakout of pattern with high volumes so further buying is expected from current levels.

Moreover, the technical indicators such as RSI and MACD are also suggesting buying the stock. Therefore, one can buy in the range of 418-422 levels for the upside target of 455-465 levels with a stop loss below 400 levels.

Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.

Happiest Minds Technologies: Buy around: Rs 337| LTP: Rs 344| Target: Rs 370| Stop Loss Rs 318 | Upside 7%

The stock is expected to give an Inverted Head and shoulder breakout on the hourly chart with decent volume. Bullish crossover in Stochastic and MACD are looking supportive for this upside breakout.

Positive crossover of 20 & 50 DMA's indicating strength. Key support lies at 318-315 zone until this break decisively, long position can be held.

Investors can take entry around 337 levels with a stop loss of Rs 318 on a closing basis for the target of Rs 370 and Rs 390.

Torrent Power Ltd: Buy around: Rs 328| LTP: Rs 335| Target: Rs 360 | Stop Loss: Rs 310 | Upside 10%

The scrip spurted from a low of 293 and formed a hammer candlestick pattern, it showed pullback on the upside marked the high of 323 marks, and started consolidating there.

Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on the daily time frame of the chart is suggesting bullish momentum in the scrip.

Indicators and oscillators are showing conducive scenario in the coming sessions. So based on the mentioned technical structure one can go long in the scrip around 328 for the target of 360 and 380 marks with a stop loss of 310 marks.

Disclaimer: The views and investment tips expressed by 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.
Kshitij Anand is the Editor Markets at Moneycontrol.

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