The Indian market has been volatile lately, but it managed to close flat with negative bias for the month of April. Meanwhile, broader market outperformed benchmarks as the S&P BSE Midcap index rose 0.65 percent, and the S&P BSE Smallcap index closed with gains of about 5 percent in April.
While Rise in COVID cases as well as the possibility of extended localised lockdowns still remains a concern, experts say if Nifty manages to hold 14,300 level, it may retest its previous record high of 15,430.
“The rollover has been very low this time in both Nifty and Bank Nifty and also the open interest in both is not significant. This indicates that markets are light and can turn either way based on the way positions are being built,” Mehul Kothari, AVP – Technical Research at AnandRathi said.
“We hope that things start to settle by the middle of the May series. On the levels front, 14,300–15400 is the range which we are expecting,” he said.
We have collated a list of trading ideas for the May series as recommended by various experts to tide over the volatility and prepare for possibility of a bounce back:
Expert: Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas
Container Corp: Buy| LTP: Rs 587| Stop Loss: Rs 565| Target: Rs 665| Upside 13%
The stock is set to resume the larger uptrend after a short-term consolidation. In the last session, it crossed a falling trendline. The daily momentum indicator has given a fresh bullish crossover
Apollo Tyres: Buy| LTP: Rs 216|Stop Loss: Rs 205| Target: Rs 247| Upside 14%
The stock formed a short-term base near the Rs 200-level and has now started moving higher.
It formed a bullish outside bar in the last session and crossed a falling trendline and the key short-term moving averages.
Tata Chemicals: Buy| LTP: Rs 793| Stop Loss: Rs 750| Target Rs 890| Upside 12%
From the junction of 40-DEMA & the daily lower Bollinger Band, the stock has formed an Impulse on the upside. The daily momentum indicator is in bullish mode.
In the last session, it formed an Engulfing bull candle as well as a bullish outside bar.
Expert: Sameet Chavan, chief analyst-technical & derivatives, Angel Broking
ONGC: Buy| LTP: Rs 108| Target: Rs 115| Stop Loss: Rs 103| Upside 6%
On April 30, a lot of PSU stocks were buzzing throughout the day. In this space, ONGC has been one of our preferred stocks which of late saw some price-wise as well as time correction, said Chavan.
For nearly 3-4 weeks, stock prices rested around the daily '89 EMA' as well as key Fibonacci retracement levels.
On Friday, the counter surged along with reasonable higher volumes, indicating possible resumption of the higher degree uptrend.
We recommend going long for a target of Rs 115 in the coming days. A strict stop loss can be placed at Rs 103.
Expert: Mehul Kothari, AVP – Technical Research at AnandRathi
Amara Raja Batteries: Buy| LTP: Rs 810| Stop Loss: Rs 760| Target: Rs 900| Upside: 11%
In January 2021, the stock was trading above the Rs 1,000-mark and now the stock is hovering near 800-odd levels. We have seen around 20% correction from the top and the stock is still in the long-term uptrend.
At this juncture, the stock is hovering near the potential reversal zone of a bullish harmonic pattern. In addition, it is at the support of a falling trend line on the daily chart.
The risk-to-reward ratio for going long is highly lucrative in this stock. Hence, traders are advised to buy the stock in the range of Rs 810 - 800 with a stop loss of 760 for the upside potential target of 900 in the next 3 – 5 weeks.
Escorts: Buy| LTP: Rs 1118| Stop Loss: Rs 1070| Target: Rs 1190| Upside: 6%
Escorts has corrected from the top of 1400 to the recent bottom near the 1100 mark. This has brought the stock under the oversold zone in the smaller time frame.
At this juncture, the stock is trading near the potential reversal zone of bullish harmonic patterns called Butterfly.
For a medium-term trader, this could be a perfect price to go long with a time frame of 2 – 4 weeks. Thus, traders are advised to buy the stock in the range of 1120 - 1100 with a stop loss of 1070 for the upside potential target of 1190 in the next 2 – 4 weeks.
PFC: Buy| LTP: Rs 108| Stop Loss: Rs 96| Target: Rs 125| Upside: 15%
PFC underwent a significant correction of over 20 percent from the top of 140. At this juncture, it is hovering at the support of 200-DSMA.
In addition, the stock is currently trading near the potential reversal zone of bullish harmonic patterns called Shark.
Traders are advised to buy the stock in the range of 108 - 104 with a stop loss of 96 for the upside potential target of 125 in the next 2 – 4 weeks
Expert: Sumeet Bagadia, Executive Director at Choice Broking
Glenmark Pharma: Buy| LTP: Rs 576| Target: Rs 640| Stop Loss: Rs 530| Upside 11%
On the daily chart, the stock has tested the neckline of the Flag Pattern and gave a closing above it, which suggests that the upside movement in the counter is still intact.
Furthermore, the stock has been trading above its 21-Days Exponential Moving Average, which indicates that the stock can accelerate further.
On the weekly chart, the stock has given a breakout from its "Upper Band of Bollinger band" which suggests an upside movement with high volatility in the counter.
The momentum indicator RSI and MACD both have shown positive crossover on the daily chart, which adds more bullishness to the price.
Mahanagar Gas Ltd: Buy| LTP: Rs 1125| Target: Rs 1230| Stop Loss: Rs 1060| Upside 9%
On the daily chart, the stock has given a breakout from the falling wedge pattern which suggests a bull-run in the Index.
Furthermore, the stock has taken a support at 1060 level which is a 61.80% Retracement level of its previous up move from 960 to 1245 level which shows an upside movement in the counter.
Moreover, the stock has given closing above 100 DMA, which shows a positive trend for the time being.
Eicher Motors: Buy| LTP: Rs 2421| Target: Rs 2580| Stop Loss: Rs 2340| Upside 10%
On the daily chart, the stock has taken support from the horizontal line as well as 38.2% Fibonacci retracement, which suggests a bull-run in upcoming days.
Furthermore, the stock has given closing above 200-DMA, which suggests a positive move in the counter. Additionally, the momentum indicator MACD has given a positive crossover and is about to give closing above the zero-level line, which adds bullishness in the price.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.