Trade Spotlight: How should you trade Axis Bank, United Spirits, Aarti Industries, IEX, Coromandel, and others on Thursday?

Stock Market Ideas

The market rallied by more than 300 points on August 7 after losing over 1,000 points in the previous three consecutive sessions from the psychological 25,000 mark, tracking an upward move in global peers. The 24,400 level is expected to be key for the index, as consolidation may be seen below this level with support at the 24,000 mark. However, above the same, the index may march towards the 24,700 level, experts said. On the NSE, about 1,967 shares advanced against 390 declining shares. Here are some trading ideas for the near term:

Jatin Gedia, Technical Research Analyst, Capital Market Strategy at Sharekhan by BNP Paribas

Balrampur Chini Mills | CMP: Rs 492.15

Balrampur Chini Mills has been in an uptrend and recently underwent a brief consolidation. It has witnessed a fresh breakout from this consolidation with good volumes, suggesting increased participation and confirming the genuineness of the breakout. We expect the stock to continue its upward move towards Rs 530 – 550 from a short-term perspective. One should keep a stop-loss of Rs 470 for long positions.

Strategy: Buy

Target: Rs 530, 550

Stop-Loss: Rs 470

Axis Bank | CMP: Rs 1,136.8

Axis Bank has completed a five-wave decline on the daily charts and is due for a trend reversal. We expect the stock to retrace the fall. On the upside, we anticipate it to retrace towards Rs 1,208 – 1,231. Support is placed at Rs 1,100.

Strategy: Buy

Target: Rs 1,208, Rs 1,231

Stop-Loss: Rs 1,100

Vidnyan S Sawant, Head of Research at GEPL Capital

United Spirits | CMP: Rs 1,462.8

United Spirits has demonstrated clear outperformance against broader market volatility, showcasing high relative strength over the recent week. On the weekly scale, the stock has maintained a gradual rising trajectory since March 2023, indicating a bullish trend. On the daily scale, the stock exhibited bullish mean reversion from the 12-day EMA (Exponential Moving Average) and swiftly recovered a 7-day decline in just 2 days, showing robust momentum and propelling the stock to new all-time highs. Throughout this rising trend, the stock has consistently rebounded from minor dips, with buying interest around the 12-week and 26-week averages, underscoring strong price structural development. Looking ahead, there is potential upside for the stock, with a target of Rs 1,710. It is advisable to set a stop-loss at Rs 1,345 on a closing basis to manage risks effectively.

Strategy: Buy

Target: Rs 1,710

Stop-Loss: Rs 1,345

Coromandel International | CMP: Rs 1,625.85

Despite current market weakness, Coromandel International has consistently remained within its range, indicating high relative strength. On the weekly scale, the stock has been trending in a rising channel since December 2021 and broke out in June 2024, demonstrating positive price stability. It continues to hold above key moving averages, including the 12-week and 26-week averages. Additionally, the MACD (Moving Average Convergence Divergence) momentum indicator is trending higher, signaling a positive trend supported by bullish momentum. Looking ahead, there is potential upside for the stock with a target of Rs 1,962.

Strategy: Buy

Target: Rs 1,962

Stop-Loss: Rs 1,500

Indian Energy Exchange | CMP: Rs 197.87

IEX has formed a base in the demand zone of Rs 116-120 and recently moved out of this range, indicating the completion of stage 1 accumulation. Price stability above Rs 200 would signal the start of stage 2, the advance phase. This week, the stock has shown high relative momentum compared to the broader market. IEX has successfully stayed above key moving averages, such as the 21 and 34 EMAs. The momentum indicator remains positive, reflecting a strong alignment of trend and momentum on higher timeframes. Looking ahead, the stock appears poised for further gains, with a target set at Rs 233.

Strategy: Buy

Target: Rs 233

Stop-Loss: Rs 180

Bharat Petroleum Corporation | CMP: Rs 343.65

BPCL's stock has emerged from a period of underperformance spanning approximately seven years, with a significant breakout observed in November 2023. This breakout suggests that the stock is poised to enhance its momentum moving forward. In the July monthly close, the stock maintained its position above a five-month congestion zone. Momentum and trend indicators are also supportive of this bullish outlook. The RSI has exhibited a bullish crossover on the weekly scale, indicating positive momentum. Additionally, the range shift formation aligns with price action supported by momentum. Looking ahead, there is potential upside for the stock, with a target of Rs 420.

Strategy: Buy

Target: Rs 420

Stop-Loss: Rs 315

Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities

Aarti Industries | CMP: Rs 754

Aarti Industries has faced significant pressure, dropping from Rs 1,000 to around Rs 450 over the past few years. In the last six months, it has been consolidating within a broader range of Rs 450 to Rs 700, fluctuating around its 200-day exponential moving average (DEMA). After this extended consolidation phase, the stock has recently demonstrated renewed bullish momentum by surpassing the Cup & Handle pattern and breaking through the key resistance level of Rs 700. Therefore, one can buy, hold, or accumulate the stock for the expected upside of Rs 920-935 levels with a downside support zone of Rs 750-730 levels.

Strategy: Buy

Target: Rs 920, Rs 935

Stop-Loss: Rs 660

Mahindra & Mahindra Financial Services | CMP: Rs 303.8

After making its 52-week high of Rs 316.35, Mahindra & Mahindra Financial Services has experienced a steady pullback, with prices correcting from Rs 316 to Rs 281 over the past four weeks, forming a pattern of lower highs and lower lows on the daily chart. Despite this, the stock found support at its 200-day exponential moving average and subsequently saw a sharp bounce. This led to a breakout above the falling trendline of the downward-sloping channel on the medium-term chart. The recent momentum above this bearish channel suggests a potential continuation of the uptrend. Therefore, one can buy, hold, or accumulate the stock for the expected upside of Rs 338-340 levels with a downside support zone of Rs 300-295 levels.

Strategy: Buy

Target: Rs 338, Rs 340

Stop-Loss: Rs 285

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.