Nifty likely to remain in a narrow range; 5 stocks which could give up to 11% return

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26 Aug, 2025 12:21

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Soumen Chatterjee

The Nifty50 snapped its four-day losing streak and closed 30 points higher at 10,124.35 on Tuesday ahead of two-day US Federal Reserve meeting beginning later in the day.

The index opened with negative bias but managed to close with marginal gains of 0.30 percent. During the day, Nifty went higher till 10,155.65 but gave up the gains as it took resistance of its 200-DMA placed around 10,166 mark.

The Relative Strength Index – RSI on the Daily Chart is at 36.01; is in neutral to negative zone with no divergence against the price and MACD is continuously sustaining below zero line with a negative cross.

Meanwhile, -DI is continuously trading above +DI which indicates weakness to continue and Nifty may slide towards the psychological level of 10,000.

On the options front, maximum Put open interest is placed at 10,000 (68.16 lakh contracts) followed by 10,100 strikes (49.07 lakh contracts) while maximum Call open interest is placed at 10500 (64.70 lakh contracts) followed by 10,400 strikes (50.73 lakh contracts).

As per the options data, the support level in Nifty has shifted lower in the March expiry compared to last week. The Nifty is likely to remain in a narrow range for the next few trading sessions with immediate support seen around 10,000-10,100 levels whereas 10,400-10,500 will act as a major hurdle; however, before that Nifty has to manage to close above its 200 DMA.

India VIX marginally fell 1.34 per cent at 15.60; however, it is still trading above the crucial mark of 14.00 which indicates mild volatility to remain in this expiry.

Here is a list of top five trading ideas which could give up to 11% return in the short term:

GM Breweries Ltd: Buy | Target: Rs 1114 | Stop loss: Rs 945 | Return: 11.40%

The stock has given a consolidation breakout above Rs 975-980 levels last Friday with higher volumes in the daily scale. The Relative Strength Index (RSI) and MACD has given positive crossover and are in Buy mode.

Traders can buy the stock at the current level and add on dips around Rs 980-990 with a stop loss below Rs 945 (closing) for the target of Rs 1114.

Bharat Financial Inclusion Ltd: Buy | Target: Rs 1126 | Stop loss: Rs 1030 | Return: 6.02%

The stock has given consolidation breakout on a closing basis with moderate volume in weekly scale. The Weekly Relative Strength Index (RSI) showing upward momentum and +DI continuously trading above -DI while MACD is sustaining above zero line and trying to cross over the signal line, which indicates the stock price has potential to move higher.

Traders can buy the stock in a range of Rs 1063-1054 with a stop loss below Rs 1030 (close) for a target of Rs 1126.

Marico Ltd: Buy | Target: Rs 339 | Stop loss: Rs 306 | Return: 6.29%

The stock has given a breakout from symmetrical triangle pattern above Rs 310 levels with higher volumes in the daily scale.

The Daily Relative Strength Index (RSI) showing upward momentum and MACD trading with positive crossover where OBV—On Balance Volume continuously making higher highs which indicates that the stock has potential to move higher from current levels.

Traders can buy the stock around current levels and add on dips around Rs 312-314 with a stop loss below Rs 306 (closing) for the target of Rs 339.

L&T Finance Holdings: Sell | Target: Rs 137 | Stop loss: Rs 163.30 | Return: 10.81%

The stock has given a breakdown from symmetrical triangle pattern below Rs 158 levels on Monday in daily scale. The Daily Relative Strength Index (RSI) showing downward momentum and -DI continuously trading above +DI while MACD continuously sustaining below zero line with a negative cross, which indicates that the stock is in corrective mode. Traders can sell the stock with a stop loss above Rs 163.50 (closing) for the target of Rs 137.

ONGC: Sell | Target: Rs 165 | Stop loss: Rs 179 | Return: 5.23%

The stock slipped below its crucial long-term support of 200DMA placed around 176-177 levels. Daily Relative Strength Index (RSI) showing downward momentum and MACD continuously sustaining below zero line, signaling weakness.

Traders can sell the stock in the range of Rs 174-176 with a stop loss above Rs 180 (close) for a target of Rs 165.

Disclaimer: The author is HoR, Guiness Securities. The views and investment tips expressed by investment experts 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.