The benchmark indices nosedived on February 3, with the Nifty 50 declining 0.5 percent. The market breadth was also in favour of the bears, as a total of 1,931 shares were under pressure against 649 shares that advanced on the NSE. As long as the market defends the midline of Bollinger Bands, the trend may remain in favour of bulls despite Monday's profit booking. Below are some trading ideas for the near term:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Colgate Palmolive | CMP: Rs 2,763.5
Colgate Palmolive has been in a corrective phase since its peak near Rs 3,890 and recently tested the Rs 2,600 level. A double-bottom formation has emerged around this zone, followed by a confirmed breakout on the daily chart, signaling a potential trend reversal. Additionally, the daily RSI (Relative Strength Index) is positively aligned, indicating strengthening bullish momentum and a likely pullback. Given these technical factors, traders may consider entering long positions in the Rs 2,675-2,775 zone, with an upside target of Rs 3,133.
Strategy: Buy
Target: Rs 3,133
Stop-Loss: Rs 2,510
Mankind Pharma | CMP: Rs 2,581.8
Mankind Pharma has undergone a significant correction from its Rs 3,054 peak, briefly dipping below Rs 2,400. The stock found strong support near its previous swing low, aligning with the 200 DEMA, reinforcing this level as a key support zone. Additionally, it has reversed from the 61.8% Fibonacci retracement of its prior move, suggesting a potential rebound in the coming weeks. These technical signals indicate a likely recovery, making this an important level to watch for bullish momentum ahead. Traders may consider entering long positions in the Rs 2,500-2,590 zone, with an upside target around Rs 2,926.
Strategy: Buy
Target: Rs 2,926
Stop-Loss: Rs 2,340
ITC | CMP: Rs 454.35
After a significant correction of nearly 18% from its peak of approximately Rs 499, ITC has established a strong base near the Rs 430 level. This area coincides with the previous breakout zone and aligns with the S3 quarterly levels of the Camarilla Pivot, providing solid support. Additionally, the stock has displayed a bullish divergence on the Stochastics on the daily chart, which signals a potential reversal and strengthens the case for an upward move. Traders may consider entering buy positions in the Rs 450-455 zone, with a target of Rs 500 on the upside.
Strategy: Buy
Target: Rs 500
Stop-Loss: Rs 427
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Deepak Nitrite Futures | CMP: Rs 2,336.35
Deepak Nitrite has taken good support at the lower end of the rising trendline, and the momentum indicator MACD (Moving Average Convergence Divergence) has turned bullish on the daily charts. The stock has witnessed the major part of the correction due to long unwinding, and the open interest (OI) in the Futures segment has reached almost three-year lows, indicating that positions are light right now. This suggests the stock can witness fresh additions from the current levels, as the risk-reward ratio is also favourable.
There has been good Put OI from the Rs 2,300 strike to Rs 2,100 strike, and on the upside, there is significant Call addition at the Rs 2,400 strike. Once these resistances are taken off, the stock could experience a sharp uptrend. The stock is trading below its maximum pain and modified maximum pain levels of Rs 2,350 and Rs 2,407 levels, so it is necessary for it to break these resistances to gain further strength. The 30-day VWAP (volume-weighted average price) is also near Rs 2,400, so a close above these levels will likely lead to a sharp run-up, as the sector has been performing well recently. Hence, based on the OI in futures as well as the positive divergence, we anticipate an up move.
Strategy: Buy
Target: Rs 2,370, Rs 2,460
Stop-Loss: Rs 2,240
Bajaj Auto Futures | CMP: Rs 8,944.85
Bajaj Auto has witnessed short covering in the last trading week, and the same was well anticipated based on the overall OI in futures. The stock has also provided a breakout above its 30-day VWAP (i.e., above Rs 8,750) with a bullish crossover in its daily MACD, supported by a positive divergence, suggesting high upside probability. The PCR (Put Call Ratio) is still at 0.76, which is bearish due to significant Call additions at the Rs 9,000, Rs 9,200, and Rs 9,500 strikes. However, significant Put additions have been seen at Rs 8,500 and Rs 9,000, showing support from these levels. There have been positive announcements in the Budget regarding the improvement in demand in consumption, which will likely benefit the auto sector, particularly two-wheelers. Hence, there is a good probability of an upside.
Strategy: Buy
Target: Rs 9,300, Rs 9,500
Stop-Loss: Rs 8,750
IndusInd Bank Futures | CMP: Rs 1,016.55
IndusInd Bank has recently shown signs of short covering, with the stock closing in positive territory. There have been significant short additions in this stock over the past couple of months, and now there is a high chance of a bounce-back from the current levels. The stock has surpassed its 30-day VWAP, and this will now act as support. Traders can place a stop-loss below these levels and initiate longs from the current levels. There has been a positive divergence in the daily MACD, indicating that the short-term trend is positive.
On the upside, there is significant Call writing at the Rs 1,000 level, but the stock has managed to close above this level. If it continues to make higher highs from here, further upward momentum will likely be driven by short covering in the Rs 1,000 strike by the Call writers. The stock is trading well above its maximum pain and modified maximum pain levels of Rs 1,000 and Rs 1,013, which is positive for it in the short term. Also, the PCR is now at 0.97, which is neutral, having turned from bearish.
Strategy: Buy
Target: Rs 1,068, Rs 1,090
Stop-Loss: Rs 970
Anshul Jain, Head of Research at Lakshmishree Investments
Bajaj Finance | CMP: Rs 8,425.8
Bajaj Finance has finally broken out of a massive 76-week bullish Volatility Contraction Pattern (VCP), signaling a strong uptrend. The breakout is backed by a 3.5x surge in daily volumes compared to the 50-day average, indicating significant institutional participation. Such volume expansions confirm conviction-driven buying, often preceding strong price momentum. The prolonged consolidation suggests substantial accumulation, setting the stage for a sustained move. Traders and market participants should monitor price action for follow-through strength. With institutional backing, Bajaj Finance could be entering a high-probability uptrend, offering a compelling technical setup for the coming sessions.
Strategy: Buy
Target: Rs 9,200
Stop-Loss: Rs 8,200
L&T Technology Services | CMP: Rs 5,500.85
L&T Technology Services (LTTS) has successfully broken out of a 39-day bullish Cup & Handle pattern, a classic continuation setup indicating renewed upside momentum. While the breakout volume was around average, the entire right side of the pattern witnessed multiple high-volume sessions, suggesting strong institutional accumulation leading up to the move. This steady accumulation phase often precedes sustained rallies as supply dries up and demand takes over. Traders should track price action for confirmation and potential retests, as a well-formed Cup & Handle breakout typically results in a strong trending move if the stock holds above the breakout zone.
Strategy: Buy
Target: Rs 5,750
Stop-Loss: Rs 5,400
SBI Cards and Payment Services | CMP: Rs 825.3
SBI Card has finally broken out of a 323-day-long rectangle pattern, signaling the end of prolonged consolidation. The breakout is accompanied by volumes exceeding 3x the 50-day average, a strong indication of institutional accumulation. Such volume expansion during a breakout often leads to sustained trends, as smart money positions itself for higher levels. If the stock sustains above Rs 825, momentum could accelerate toward Rs 1,000, marking a significant upside move. The extended base formation suggests well-absorbed supply, positioning SBI Card for a strong rally if follow-through buying continues in the coming sessions.
Strategy: Buy
Target: Rs 900
Stop-Loss: Rs 775
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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