The benchmark indices remained under pressure for the eighth consecutive session amid rising volatility, with breadth strongly favouring bears. About 2,262 shares declined, while 340 shares advanced on the NSE. The market is expected to consolidate further, with last week's low acting as support. Below are some trading ideas for the near term:
Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox
Redington | CMP: Rs 245.3
Redington closed at Rs 245 after a breakout above the Rs 225 resistance, supported by strong volumes, indicating bullish momentum. The stock is above its 20, 50, 100, and 200-day EMAs (exponential moving averages), confirming a positive trend, with these moving averages acting as dynamic support.
Momentum indicators are favourable—RSI (relative strength index) is in the bullish zone, reflecting strength, MACD (moving average convergence divergence) is in positive territory, signaling a buy, and ADX (average directional index) is rising, suggesting a strengthening trend.
Investors can accumulate in the Rs 230-240 zone, aligning with support levels, while maintaining a stop-loss below Rs 213, as a breach may reverse the trend. Upside targets are Rs 268 and Rs 282, based on breakout projections and prior resistance zones. This technical setup indicates Redington is well-positioned for further upside, making it an attractive "buy on dips" opportunity.
Strategy: Buy
Target: Rs 268, Rs 282
Stop-Loss: Rs 213
ICICI Bank | CMP: Rs 1,260.1
ICICI Bank is consolidating within a pennant-like pattern marked by lower highs and higher lows, indicating a potential breakout. It is holding key support levels at the 200, 100, and 50-day EMAs, and a recent close above the 10-day EMA suggests a shift in momentum. The 20-day EMA acts as near-term resistance.
Momentum indicators support a positive outlook—MACD has formed a bullish crossover, RSI is at 52, reflecting neutral to bullish strength, while ADX is at 16, signaling a developing trend.
A buy is recommended at current levels, with an initial target of Rs 1,320 and an extended upside to Rs 1,342. A decisive breakout above Rs 1,280 will further strengthen bullish momentum. A stop-loss below Rs 1,230 is advised to protect against downside risks.
Strategy: Buy
Target: Rs 1,320, Rs 1,342
Stop-Loss: Rs 1,230
Reliance Industries | CMP: Rs 1,217.25
Reliance Industries is holding a critical support zone near Rs 1,200 for the past two months, indicating strong accumulation and a low-risk entry point. The stock is rangebound between Rs 1,200 and Rs 1,290. RSI is at 39, reflecting consolidation with oversold tendencies, favouring a potential rebound.
Buying is suggested at current levels for short-term targets of Rs 1,280 and Rs 1,315. A stop-loss below Rs 1,180 is advised, as a breach could invalidate the bullish structure. The risk-reward ratio is favourable, with the stock positioned for a range breakout upon sustained strength above Rs 1,290.
Strategy: Buy
Target: Rs 1,280, Rs 1,315
Stop-Loss: Rs 1,180
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Sundaram Finance | CMP: Rs 4,565.2
Sundaram Finance has faced decent profit booking after peaking at Rs 5,518 in September 2024. Currently, the counter is hovering near the cluster of its EMAs and 200 DSMA, portraying a time-wise corrective phase. Though in the shorter duration, the counter has been witnessing some buying traction and is hovering within a symmetrical triangle, with a supportive bullish trend indicated by the SuperTrend indicator. Also, the 14-period RSI and MACD align well with the undertone, adding a bullish quotient. Hence, we recommend buying Sundaram Finance around Rs 4,550-Rs 4,500.
Strategy: Buy
Target: Rs 5,000
Stop-Loss: Rs 4,220
Tata Consumer Products | CMP: Rs 1,022.55
Tata Consumer Products has begun to gain traction over the past few trading months, demonstrating a cycle of higher highs and higher lows. The stock is currently positioned above the mean of the Bollinger Band, which helps cushion any potential setbacks. It is trading within a broad range, and a decisive surge could trigger further momentum in the near future. Additionally, the momentum indicators align with the price action, contributing to a bullish outlook. Hence, we recommend buying Tata Consumer Products around Rs 1,010-Rs 1,000.
Strategy: Buy
Target: Rs 1,100
Stop-Loss: Rs 960
Kaveri Seed Company | CMP: Rs 935.75
Kaveri Seed Company has experienced a significant correction of over 30% from its peak of Rs 1,201, dipping below the 200-DSMA. However, in the past couple of trading weeks, the stock has regained some of its lost value, indicating an initial sign of reversal. Currently, the stock is trading near a cluster of its EMAs and the 200 DSMA, suggesting a positive development. Additionally, the SuperTrend indicator points to a potential trend reversal, which aligns with other technical signals. From a risk-reward perspective, the stock is in an attractive zone and is likely to continue its upward movement in the near future. Hence, we recommend buying Kaveri Seed Company around Rs 920-900.
Strategy: Buy
Target: Rs 1,020
Stop-Loss: Rs 860
Anshul Jain, Head of Research at Lakshmishree Investments
Shree Cement | CMP: Rs 28,556
Shree Cement is forming a bullish Volatility Contraction Pattern (VCP) on the daily chart, signaling a breakout above Rs 28,800. The pattern shows reduced volumes, indicating strength, while sectoral momentum adds to its appeal. A breakout above Rs 28,800 could drive the stock toward Rs 33,000. With increasing buying interest in the cement sector, a surge in volumes is expected, making this a high-probability breakout setup.
Strategy: Buy
Target: Rs 31,500
Stop-Loss: Rs 27,000
Bajaj Finance | CMP: Rs 8,392.3
Bajaj Finance has broken out of a 76-week bullish Volatility Contraction Pattern (VCP), signaling a strong uptrend. The breakout is backed by a 3.5x surge in daily volumes, indicating institutional buying. Such volume expansion confirms conviction-driven accumulation, often preceding strong price moves. After a successful retest of support, the stock is gaining momentum for a swift upmove. With institutional backing and prolonged consolidation, Bajaj Finance presents a high-probability technical setup for further upside.
Strategy: Buy
Target: Rs 8,690
Stop-Loss: Rs 8,300
Kotak Mahindra Bank | CMP: Rs 1,952.4
Kotak Mahindra Bank has formed a 600-day Cup and Handle pattern on the daily chart and is on the verge of a breakout. The right-side development just below the neckline shows strong accumulation, with high volumes on up days and lower volumes on down days. This volume action signals strong institutional interest. A decisive breakout and sustained move above Rs 1,980 will confirm the pattern, potentially triggering a strong upside rally. Given the stock’s prolonged consolidation and bullish structure, traders should watch for follow-through buying. If momentum builds post-breakout, Kotak Bank could enter a high-probability uptrend, offering an attractive trading opportunity.
Strategy: Buy
Target: Rs 2,200
Stop-Loss: Rs 1,880
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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