The benchmark indices hit a more than four-month low, closing with nearly a 6 percent loss on June 4, with about 2,207 equity shares declining and 110 shares advancing on the NSE. The market is likely to be volatile with a negative bias in the coming sessions. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder & CEO of Waves Strategy Advisors
Sun TV Network | CMP: Rs 692
Sun TV Network ended the previous trading session on a positive note despite major indices falling. The stock closed with a gain of 2.90 percent. Prices gave a close above the previous swing high, which was near Rs 680 levels.
On the below chart, we can see how the Ichimoku cloud has acted as a support cushion, as prices bounced back from it precisely. Also, volumes have increased, which is supporting the trend. Hence, the trend for Sun TV Network is positive. A break above Rs 700 can lift prices higher towards Rs 780 as long as Rs 655 holds on the downside.
Strategy: Buy
Target: Rs 780
Stop-Loss: Rs 655
Godrej Consumer Products | CMP: Rs 1,348.45
In the previous trading session, Godrej Consumer Products closed on a positive note with a gain of 3.21 percent. On the daily chart, prices took support from the Supertrend line, and a sharp bounce on the upside was seen. It is currently approaching the previous swing high, which is near Rs 1,373 levels. A decisive breakout above it can result in a fresh rise in this stock.
The trend for Godrej Consumer Products is bullish. A break above Rs 1,373 can lift the prices higher towards Rs 1,480 as long as Rs 1,270 holds on the downside.
Strategy: Buy
Target: Rs 1,480
Stop-Loss: Rs 1,270
Britannia Industries | CMP: Rs 5,325
Britannia has been moving higher and is intact in a strong uptrend. In the previous session, it closed with a gain of 3.04 percent and formed a bullish candle. A daily close above Rs 5,420 level will confirm the breakout of the rounding bottom pattern. We have applied Parabolic SAR (Stop And Reverse). A series of dots placed below the price which is deemed to be a bullish signal.
The trend for this stock is positive. A break above Rs 5,420 can lift price higher towards Rs 5,800 levels as long as Rs 5,120 holds on the downside.
Strategy: Buy
Target: Rs 5,800
Stop-Loss: Rs 5,120
Om Mehra, Technical Analyst at SAMCO Securities
United Spirits | CMP: Rs 1,204
United Spirits stock price has been consolidating within a broad range, consistently finding support along a rising trendline. It is currently trading above its 50-day moving average (DMA). The stock is sustaining above the critical resistance zone of Rs 1,190, suggesting potential for further upward movement.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 1,204 for a target price of Rs 1,280. The stop-loss can be kept at Rs 1,150.
Strategy: Buy
Target: Rs 1,280
Stop-Loss: Rs 1,150
Avenue Supermarts | CMP: Rs 4,549
Avenue Supermarts stock experienced a correction from its peak and has established strong support at the 38.2 percent Fibonacci retracement level. The Relative Strength Index (RSI) has stabilized, holding near the 48 level, indicating a potential consolidation phase. Additionally, the stock continues to trade above its 100-day daily moving average (DMA).
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 4,549 for a target price of Rs 5,000. The stop-loss can be kept at Rs 4,200.
Strategy: Buy
Target: Rs 5,000
Stop-Loss: Rs 4,200
Riyank Arora, Technical Analyst at Mehta Equities
Power Finance Corporation | CMP: Rs 427
PFC reached the lower boundary of its rising wedge support at Rs 425 and managed to close above it. Given the positive overall trend and the attractive risk-reward ratio at current levels, it appears to be a strong buy. A strict stop-loss is set at Rs 400, aiming for a target of Rs 500 and potentially higher.
Strategy: Buy
Target: Rs 500
Stop-Loss: Rs 400
Bharat Electronics | CMP: Rs 255.55
Bharat Electronics touched its trendline support at Rs 240 on the daily charts and closed above this level. With a positive overall trend and the stock forming higher highs and higher lows, it offers an appealing risk-to-reward ratio at current levels. A strict stop-loss is placed at Rs 225, with an upside target of Rs 300 and potentially more.
Strategy: Buy
Target: Rs 300
Stop-Loss: Rs 225
Shriram Properties | CMP: Rs 96
Shriram Properties has reached its significant anchor VWAP (volume-weighted average price) support level of Rs 95 on the technical charts. On the weekly timeframe, a major swing low support is marked at Rs 94.15, which is also holding strong. With the price aligning well with both the anchor VWAP and the swing low support, the stock is likely to move towards potential targets of Rs 125 and above. To manage risk effectively, a strict stop-loss should be set at Rs 89 for this trade.
Strategy: Buy
Target: Rs 125
Stop-Loss: Rs 89
Bajel Projects | CMP: Rs 246.5
Bajel Projects has reached its trendline support at Rs 247 on the daily charts, presenting an attractive risk-reward opportunity at the current levels. With minimal downside risk and the RSI (14) near 45.45 indicating an oversold condition, the stock appears poised for an upward move towards Rs 295 and Rs 300. To manage risk effectively, a strict stop-loss should be set at Rs 230.
Strategy: Buy
Target: Rs 300
Stop-Loss: Rs 230
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.
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