Podcast | Stock picks of the day: 'Nifty to trade with positive bias, 10,700-10,800 key support'

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26 Aug, 2025 12:21

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Shitij Gandhi

Once again Nifty managed to take support at its 200-days exponential moving average on daily interval and bounced back sharply thereon to reclaim 10,900 levels.

On the derivative front, the Put writing was seen in 10,700-10,800 and 10,900 strikes along with Call unwinding in 11000 call strike which can be considered as a positive signal as 11,000 call strike holds with the maximum OI of nearly 41 lakh shares.

We expect Nifty to trade with a positive bias and any decisive move above 11,000 levels will definitely add further buying momentum towards 11,100 levels this week. On technical front, 10,800-10,700 levels will act as major support for the bulls.

Here is a list of top three trading ideas which could give 7-10% return in the next 1 month:

ITC: Buy| Target: Rs 313| Stop Loss: Rs 280| Return 7%

On the daily charts, the stock has been hovering around its 200-days exponential moving average (DEMA) for more than two months in a broader range of 270-290 supported with consistent buying at lower levels.

The consolidation in prices has formed a Symmetrical Triangle pattern on the daily charts and last week also witnessed a fresh breakout above the triangle pattern with marginally higher volumes.

The breakout suggests that follow up buying can move stock toward the north in coming sessions as well. Traders can accumulate the stock in a range of 292-297 for the upside target of 313 levels and a stop loss below 280.

Bharti Airtel: Buy| Target: Rs 366| Stop Loss: Rs 310| Return 10%

The stock made a double bottom pattern around 280 levels on the daily charts and took a V-shaped recovery towards 320 levels.

On the daily interval, the stock has formed an inverted head and shoulder pattern and has also managed to give breakout above the neckline of the pattern this week along with positive divergence on secondary indicators.

Traders can accumulate the stock in a range of 332-338 for the upside target of 366 levels and a stop loss below 310.

Tata Motors - DVR: Buy| Target: Rs 106| Stop Loss: Rs 91| Return 9%

The stock has been consolidating near its lower levels within a broader range of 90-98 for more than four weeks. However, from technical front, the stock has formed an inverted head and shoulder pattern on daily charts and is on verge of a fresh breakout above the pattern.

Additionally, prices are also maintaining well above its short term moving averages which will support the up move in prices going forward. Traders can accumulate the stock in a range of 97-99 for the upside target of 106 levels and a stop loss below 91.

(The author is a Senior Research Analyst, SMC Global Securities Ltd.)

Disclaimer: 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.