Equity benchmarks BSE Sensex and Nifty 50 continued their northward journey for the third straight session on May 18, while the Nifty Midcap 100 index rallied for seven days in a row, with approximately 1,582 shares advancing and 638 shares declining on the NSE. The upward move towards a record high is expected to be seen in the coming sessions. Here are some trading ideas for the near term.
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Aurobindo Pharma | CMP: Rs 1,202.4
Aurobindo is in a strong uptrend across all time frames, forming a series of higher tops and bottoms, indicating a positive bias. It has registered an all-time high at Rs 1,212, indicating bullish sentiments. The stock has decisively broken out over the past five months' consolidation range (Rs 1,180-985) on a closing basis, indicating the resumption of the prior uptrend.
The stock has been well placed above its 20, 50, 100, and 200-day SMA (simple moving average), and these averages are also inching up along with the price rise, which reaffirms the bullish trend. The daily, weekly, and monthly strength indicator RSI (relative strength index) is in positive terrain, justifying rising strength across all time frames.
Investors should buy, hold, and accumulate this stock with an expected upside of Rs 1,285-1,330, with a downside support zone of Rs 1,165-1,145 levels.
Strategy: Buy
Target: Rs 1,285, 1,330
Stop-Loss: Rs 1,145
TVS Motor Company | CMP: Rs 2,191.5
With the past couple of sessions' up move, TVS has decisively broken out of the past couple of months' multiple resistance zone at Rs 2,180 levels, indicating a positive bias. Rising volumes over the past couple of weeks signify increased participation at breakout zones.
The daily and weekly strength indicator RSI is in positive terrain, which justifies rising strength on short to medium-term time frames. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 2,300-2,385, with a downside support zone of Rs 2,100-2,060 levels.
Strategy: Buy
Target: Rs 2,300, 2,385
Stop-Loss: Rs 2,060
Indian Railway Finance Corporation | CMP: Rs 173.25
Since the past three months, IRFC was consolidating within Rs 165-130 levels. However, with the current week's strong gains, the stock has witnessed a strong breakout at Rs 165 levels. This breakout is accompanied by huge volumes, indicating increased participation.
The stock has been well placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, which reaffirms the bullish trend. The daily, weekly, and monthly strength indicator RSI are in positive terrain, which justifies rising strength across all time frames.
Investors should buy, hold, and accumulate this stock with an expected upside of Rs 197-218, with a downside support zone of Rs 164-155 levels.
Strategy: Buy
Target: Rs 197-218
Stop-Loss: Rs 155
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
MTAR Technologies | CMP: Rs 2,042.3
MTAR Technologies has seen a decent rebound in the last couple of trading sessions, soaring nearly 14 percent in the week ending May 18. Additionally, the counter substantially surpassed its major short-term EMAs (exponential moving averages) on the daily time frame chart, suggesting inherent strength.
Simultaneously, with the recent move, the counter witnessed a ‘Symmetrical Triangle’ pattern breakout, indicating a bullish quotient in the counter. On the technical parameters, the MACD (moving average convergence divergence) has seen a positive crossover, adding robust development to the counter.
Hence, we recommend buying MTAR Technologies around Rs 2,020-2,000, with a stop-loss at Rs 1,900, and a target at Rs 2,180-2,200.
Strategy: Buy
Target: Rs 2,180, 2,200
Stop-Loss: Rs 1,900
Paras Defence and Space Technologies | CMP: Rs 774.85
Paras witnessed a decisive spurt in price volume in the last couple of trading sessions, soaring over 10 percent on a WoW basis. The counter is in a cycle of higher highs, higher lows in the current financial year, hovering above all its major EMAs on the daily chart, adding a bullish undertone.
From a technical standpoint, the counter has witnessed an ‘Inverted Head & Shoulder’ pattern breakout, backed by decent volumes. On the oscillator front, the 14-period RSI (relative strength index) and MACD both signal a continuation move, suggesting a potential upside journey in a comparable period.
Hence, we recommend buying Paras around Rs 750-740, with a stop-loss at Rs 700 and a target at Rs 845-850.
Strategy: Buy
Target: Rs 845-850
Stop-Loss: Rs 700
Tata Communications | CMP: Rs 1,807.60
Tata Communications has nosedived from its lifetime high of the Rs 2,084 zone to below its 200 SMA on the daily chart, eroding almost 20 percent. However, after the correction, the counter stabilized near its previous consolidation zone and started retracting in the last couple of sessions. The stock price has seen a decent move to surpass the critical zone of the 200 SMA and is now eyeing a gradual reversal over a period of time.
On the oscillator front, the 14-period RSI and MACD both signal a reversal from the oversold terrain, suggesting a potential upside journey in a comparable period.
Hence, we recommend buying Tata Communications around Rs 1,800, with a stop-loss at Rs 1,700 and a target at Rs 1,960-2,000.
Strategy: Buy
Target: Rs 1,960-2,000
Stop-Loss: Rs 1,700
Vinay Rajani, CMT, Senior Technical & Derivative Analyst at HDFC Securities
Mishra Dhatu Nigam | CMP: Rs 476.55
MIDHANI has broken out from the multiple top resistance of Rs 455 and has been sustaining above it. Resistance has been taken out with a jump in volumes, confirming the bullish trend. It has been forming higher tops and higher bottoms on the daily and weekly charts.
It is placed above all important moving averages, indicating a bullish trend on all time frames. Indicators and oscillators have been showing strength in the current uptrend.
Strategy: Buy
Target: Rs 525
Stop-Loss: Rs 450
Computer Age Management Services | CMP: Rs 3,316.95
CAMS has been consolidating in the range for the last four consecutive weeks. The primary trend of the stock has been bullish as the stock is trading above all important moving averages. Indicators and oscillators like RSI and MACD have been showing strength in the current uptrend.
Strategy: Buy
Target: Rs 3,600
Stop-Loss: Rs 3140
Tech Mahindra | CMP: Rs 1305.65
On April 26th, Tech Mahindra broke out from the downward sloping trendline on the daily chart. The price rise was accompanied by a rise in volumes. Post-breakout, it witnessed a correction and reached a gap support on the daily chart.
After taking support in the gap, the stock resumed its primary uptrend. Indicators and oscillators have turned bullish on the daily charts.
Strategy: Buy
Target: Rs 1,380
Stop-Loss: Rs 1,215
Axis Bank | CMP: Rs 1,143.75
Axis Bank registered a running correction and now seems to have resumed its uptrend. It has taken support near its previous swing high on the daily chart.
The primary trend of the stock has been bullish with higher tops and higher bottoms. The stock is placed above all important moving averages, indicating a bullish trend on all time frames.
Strategy: Buy
Target: Rs 1,210
Stop-Loss: Rs 1,048
Disclaimer: The views and investment tips expressed by investment 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
