Bulls seem to be getting no chance to take control over Dalal Street as the benchmark indices extended their downtrend for seven days in a row, with negative market breadth. A total of 1,357 shares saw a correction compared to 1,217 shares that advanced on the NSE. While the market may rebound amid consolidation, sustaining the expected recovery is key to watch. Below are some trading ideas for the near term:
Mandar Bhojane, Equity Research Analyst at Choice Broking
Bajaj Finserv | CMP: Rs 1,849.25
Bajaj Finserv has shown robust upward momentum. The stock’s recent breakout was supported by significant trading volume, indicating strong investor interest. The chart reveals a steady climb, with the 20-day EMA (Exponential Moving Average) trending upward and converging towards the 50-day and 100-day EMAs. This alignment of moving averages suggests a continuation of the bullish trend if supported by further buying pressure, affirming its inherent strength.
While facing minor resistance at the Rs 1,850 level, a breakout beyond this threshold could pave the way for further upward momentum. Sustaining levels above Rs 1,900 may propel the stock towards the next target at Rs 2,000, presenting a promising outlook for investors.
Reinforcing the positive sentiment, the Relative Strength Index (RSI) comfortably rests at 64.15, indicating a favourable balance between buying and selling pressures. The technical parameters collectively suggest a constructive environment for Bajaj Finserv, encouraging potential bullish movements in the near term.
Strategy: Buy
Target: Rs 2,000
Stop-Loss: Rs 1,770
Muthoot Finance | CMP: Rs 2,317.8
Muthoot Finance is exhibiting strong bullish momentum, hitting an all-time high of Rs 2,334.8 on Thursday. This breakout has been accompanied by a consolidation of the upward movement, characterized by higher highs and higher lows, supported by robust trading volumes, reinforcing the strength in the stock. The breakthrough suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
Additionally, Muthoot Finance is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, further affirming its bullish stance. The momentum indicator, RSI, is at 63.44. For traders, keeping an eye on the strong support near the Rs 2,222 level is advisable, as a breach of this level could signal a shift in sentiment. Overall, Muthoot Finance's current technical setup suggests a favourable environment for further upside potential.
Strategy: Buy
Target: Rs 2,500
Stop-Loss: Rs 2,222
Redington | CMP: Rs 244.55
After a period of small falls and sideways consolidation, Redington has recently broken the neckline levels of Rs 230 and is rising quickly on the upside with substantial volume. There are expectations of further upward movement, potentially reaching Rs 265. On the downside, substantial support is evident near Rs 235.
Furthermore, Redington is trading above key exponential moving averages (EMAs), including the 20, 50, 100, and 200-day EMAs. This suggests strong bullish momentum, indicating the potential for continued upward price action. The RSI stands at 65.17, signaling an upward trajectory and confirming an increase in buying momentum.
Strategy: Buy
Target: Rs 265
Stop-Loss: Rs 235
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
SBI Cards and Payment Services | CMP: Rs 860
SBI Card has broken out from a Pole and Flag pattern with a large-bodied bullish candlestick and a surge in volumes to support the up move. The MACD (Moving Average Convergence Divergence) Indicator is rising, which confirms the bullish momentum.
Strategy: Buy
Target: Rs 905
Stop-Loss: Rs 835
Bajaj Finance | CMP: Rs 8,409
Bajaj Finance has taken support and headed up after retesting its 20-day EMA support levels. Higher-than-average traded volumes were visible to support the up move. The ADX (Average Directional Index) line is rising, which confirms the strength of the uptrend.
Strategy: Buy
Target: Rs 8,915
Stop-Loss: Rs 8,145
UPL | CMP: Rs 630
UPL has retested its breakout from a consolidation on the daily chart. It is respecting its 20-day EMA, with slight dips being bought into. The RSI indicator is positively placed, which has bullish implications.
Strategy: Buy
Target: Rs 670
Stop-Loss: Rs 610
Riyank Arora, Technical Analyst at Mehta Equities
Jubilant Foodworks | CMP: Rs 662
Jubilant Foodworks has reached a major support level of Rs 638.65 on its daily charts and formed a bullish Inverted Hammer candlestick pattern. With strong volume and signs of momentum pickup, we anticipate an upside target of Rs 735 and above. The RSI (14) is around 42, showing an upward trend, further strengthening the stock’s outlook. A strict stop-loss of Rs 620 is recommended.
Strategy: Buy
Target: Rs 735
Stop-Loss: Rs 620
Sterling Tools | CMP: Rs 403.1
Sterling Tools has touched its trendline support at Rs 395, forming Doji candlestick patterns, which indicate indecision at current levels. With the risk-reward ratio favouring bulls, it is ideal to take a small position with a strict stop-loss at Rs 380. The stock presents a low-risk setup, and the RSI (14) is recovering from lower levels, signaling strength.
Strategy: Buy
Target: Rs 475
Stop-Loss: Rs 380
Imagicaaworld Entertainment | CMP: Rs 71.81
Imagicaaworld Entertainment has tested its major anchored VWAP (volume weighted average price) support in the Rs 70-71 zone and is showing signs of reversal from lower levels. Technically, a strict stop-loss should be placed at Rs 65 as the stock gains momentum. Following the company's Q3 earnings announcement, the stock surged, and further upside is expected. The Rs 70-71 zone presents a good buying opportunity with a strict stop-loss at Rs 65, targeting Rs 80 and beyond.
Strategy: Buy
Target: Rs 80
Stop-Loss: Rs 65
Kunal Kamble, Senior Technical Research Analyst at Bonanza
Cholamandalam Investment and Finance Company | CMP: Rs 1,390.8
Cholamandalam Investment and Finance Company has formed a base near the Rs 1,184-Rs 1,164 support zone, presenting an accumulation opportunity. The stock recently broke out of resistance at Rs 1,367, and a close above this level indicates that buyers anticipate further upside toward Rs 1,590-Rs 1,650. Higher volumes supported the breakout, reflecting strong participation and buyer interest. Additionally, the price took support at the 50-day EMA and has started moving higher, suggesting continued strength. Moving forward, the 50-day EMA will act as strong support. The RSI remains in the 50-60 range, confirming the uptrend.
Strategy: Buy
Target: Rs 1,590, Rs 1,650
Stop-Loss: Rs 1,280
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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