Bears remained in full action mode as the Nifty 50 saw a gap-down opening and continued its downward move for the fourth consecutive session on May 29. The Nifty 50 formed lower highs and lower lows for the second straight day, with the momentum indicator Relative Strength Index (RSI) showing a negative crossover on the daily and weekly charts, although it still held above all key moving averages. The BSE Sensex was down 0.89 percent, and the Nifty 50 corrected by 0.8 percent, forming a bearish candlestick pattern on the daily timeframe. The market breadth was weak, with about 1,299 equity shares declining against 955 shares advancing on the NSE. Experts expect the Nifty 50 index to take support at the 22,600-22,500 zone, and above these levels, there is a possibility of a resumption of the upmove towards the 23,000 mark. However, below 22,500, a sharp downward move can't be ruled out. Here are some trading ideas for the near term:
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
Bata India | CMP: Rs 1,374
Bata India has broken out of a falling channel and started to form higher tops and higher bottoms on the daily charts, indicating a trend reversal from down to up. The daily momentum indicator has a positive crossover, which is a buy signal. We expect the stock to continue with the positive momentum and target levels of Rs 1,415/1,435 in the short term. One should maintain a stop-loss of Rs 1,350 for long positions.
Strategy: Buy
Target: Rs 1,415, 1,435
Stop-Loss: Rs 1,350
Crompton Greaves Consumer Electricals | CMP: Rs 394
Crompton Greaves has been in an uptrend and, after the recent upmove, has entered a consolidation phase. The consolidation has lasted for seven days and now appears mature to start a fresh leg of upmove. We expect the stock to target levels of Rs 415/425 in the short term. One should place a stop-loss of Rs 385 for long positions.
Strategy: Buy
Target: Rs 415, 425
Stop-Loss: Rs 385
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Metro Brands | CMP: Rs 1,161
Since April 2024, Metro Brands has been trading within a consolidation range of approximately Rs 1,020 to Rs 1,120. Recently, Metro Brands broke out of this range, surpassing the upper limit of Rs 1,120, and maintaining its position above this level. This breakout suggests a potential shift in market sentiment and the beginning of a new upward trend. Additionally, technical indicators provide further bullish signals. Therefore, it is recommended to buy Metro Brands in the price range of Rs 1,135 to Rs 1,155. The target for this trade is set at Rs 1,300. To manage risk, a stop-loss should be placed near Rs 1,068.
Strategy: Buy
Target: Rs 1,300
Stop-Loss: Rs 1,068
Divi's Laboratories | CMP: Rs 4,448.55
In the current month, Divis Labs has surpassed its historical peak, which ranged between Rs 3,920 and Rs 4,075, levels it had reached during 2022 and 2024. This breakthrough indicates the stock has overcome previous resistance levels and is now positioned for further gains. From a technical analysis perspective, the weekly stochastic oscillator has shown a bullish crossover. Based on these observations, it is recommended to take a long position in Divis Labs within the price range of Rs 4,350 to Rs 4,450. The target for this trade is set at Rs 5,000. To manage risk, a stop-loss should be placed at Rs 4,100.
Strategy: Buy
Target: Rs 5,000
Stop-Loss: Rs 4,100
Tanla Platforms | CMP: Rs 939
Since May 2024, Tanla Platforms has been trading within a consolidation range of approximately Rs 880 to Rs 910. Recently, Tanla Platforms broke out of this range, moving above the Rs 910 level and sustaining its upward momentum. This breakout is a positive signal, suggesting the stock may be entering a bullish phase. From a technical perspective, the daily stochastics have shown a bullish crossover. Based on these indicators, it is recommended to buy Tanla Platforms within the price range of Rs 915 to Rs 930. The target for this trade is set at Rs 1,020. To manage risk, a stop-loss should be placed near Rs 875.
Strategy: Buy
Target: Rs 1,020
Stop-Loss: Rs 875
Vidnyan S Sawant, Head of Research at GEPL Capital
Escorts Kubota | CMP: Rs 3,853
Escorts has demonstrated a strong uptrend, with higher highs and higher lows consistently visible on the monthly chart. Analysing the higher scale chart reveals a recurring pattern: each downward correction typically results in a decline of around 20 to 30 percent, followed by a substantial rally averaging a 70 percent gain. Currently, Escorts is trading above its key 20-week and 50-week moving averages, indicating strong bullish sentiment.
The Relative Strength Index (RSI) remains consistently above 60 across various timeframes, reflecting sustained positive momentum. Additionally, the Moving Average Convergence Divergence (MACD) on the weekly scale has formed a bullish wave, further reinforcing the optimistic outlook. The target for the stock is Rs 4,632. It's advisable to set a stop-loss at Rs 3,550 on a closing basis.
Strategy: Buy
Target: Rs 4,632
Stop-Loss: Rs 3,550
Mazagon Dock Shipbuilders | CMP: Rs 3,357
Mazagon Dock's price structure shows resilience with a clear uptrend since July 2022, consistently forming higher highs and higher lows on the monthly timeframe. On a weekly scale, the stock exhibits notable relative strength compared to the broader market. This week, it broke out of a 9-month consolidation period that began in September 2023, indicating a continuation of its upward trend.
Additionally, it has maintained its position above key averages such as the 20-week and 50-week EMAs (Exponential Moving Average), reinforcing the bullish trend. The RSI has also broken out of its downward sloping trendline and now stands above 70, indicating strong bullish momentum.
We anticipate further upward movement in prices, with a target level around Rs 4,218. However, it's essential to monitor the Rs 3,100 level closely; sustained price action below this point could invalidate the bullish outlook.
Strategy: Buy
Target: Rs 4,218
Stop-Loss: Rs 3,100
Exide Industries | CMP: Rs 507
Since July 2022, Exide has exhibited a robust price structure, maintaining an upward trend on a monthly scale and demonstrating strong relative strength compared to the broader market. In March, the stock experienced a polarity at the 2018 swing high, after which it showcased an impressive rising trend. This week, the stock broke out of the congestion zone, indicating its readiness to continue its upward trajectory.
Additionally, the stock has consistently found support at the 20-day EMA. The RSI study indicates a bullish crossover on the daily scale and weekly RSI above 70, further reinforcing the trend supported by strong momentum.
We anticipate continued upward movement in the stock, with a potential target price of Rs 607. To manage risk effectively, it's advisable to set a stop-loss at Rs 465 on a closing basis.
Strategy: Buy
Target: Rs 607
Stop-Loss: Rs 465
Rail Vikas Nigam | CMP: Rs 376
Rail Vikas Nigam has consistently reached higher highs and higher lows, clearly indicating sustained upward momentum. Moreover, volumes have surged beyond the 10-week average volume. On the daily scale, the stock has also broken out of the base pattern with a volume surge, denoting the continuation of the trend.
We anticipate further upward movement in prices, targeting Rs 461. It is recommended to set a stop-loss at Rs 340 based on closing values.
Strategy: Buy
Target: Rs 461
Stop-Loss: Rs 340
Rupak De, Senior Technical Analyst, LKP Securities
Housing & Urban Development Corporation | CMP: Rs 262.5
HUDCO has formed a Piercing Line pattern on the daily chart, indicating the possibility of a bullish reversal in the short term. Additionally, the stock has defied the recent market sell-off, exhibiting resilience. On the higher end, the stock might move towards Rs 280-285, with support placed at Rs 249.
Strategy: Buy
Target: Rs 280-285
Stop-Loss: Rs 249
Biocon | CMP: Rs 324
A bullish candlestick formation is observed on the multi-time frame chart of Biocon, with volume buying emerging from its 14-day EMA support at Rs 311. The stock is maintaining above its short-term moving averages, and the RSI indicates a bullish crossover, forming higher lows. A long position can be initiated in the Rs 318-321 range, with a stop-loss at Rs 310 and targets of Rs 332 and Rs 341.
Strategy: Buy
Target: Rs 332, Rs 341
Stop-Loss: Rs 310
Action Construction Equipment | CMP: Rs 1,423
Following a sharp correction in ACE stock, the possibility of a smart recovery is visible as a Piercing Line pattern has formed on the daily chart. Additionally, the stock has formed a higher swing low on the daily timeframe. The RSI (14) is in a bullish crossover. On the higher end, the stock might move towards Rs 1,470/1,505, with support placed at Rs 1,394.
Strategy: Buy
Target: Rs 1,470, 1,505
Stop-Loss: Rs 1,394
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
