The benchmark indices maintained their uptrend for seven straight sessions, with the Nifty closing just above 25,000, gaining 32 points on September 11, but the market breadth was slightly favouring the bears. About 1,406 shares declined against 1,360 advancing shares on the NSE. The market is expected to extend its bullish bias, given favourable technical and momentum indicators. Below are some short-term trading ideas to consider:
Hardik Matalia, Derivative Analyst at Choice Broking
Berger Paints | CMP: Rs 551.35
Berger Paints saw a breakout from its prolonged consolidation range on the daily chart, supported by a noticeable surge in volumes. This breakout, coupled with a strong close, indicates fresh buying interest and suggests the possibility of a trend reversal. The stock has also crossed above its 20-day, 50-day, and 200-day EMAs, which further confirms a shift in its market structure towards a bullish bias.
Momentum indicators align with this view as the Relative Strength Index (RSI) stands at 54.17, showing early signs of a positive crossover and strengthening momentum. Additionally, the stock has managed to close above its previous swing high, highlighting improving sentiment and increased participation from buyers at current levels.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 527
M&M Financial Services | CMP: Rs 271.5
M&M Financial Services consolidated in a wide range for the past few months and is now forming a Symmetrical Triangle pattern on the daily timeframe. The stock has recently witnessed a strong reversal from the lower trendline of this pattern, indicating renewed buying interest and showing early signs of a potential breakout on the upside.
The momentum setup also supports this view, as the RSI stands at 60.74 and is showing an upward curve, suggesting strengthening momentum. Additionally, the stock is managing to hold above all its key moving averages, which further underlines the strength in its overall structure and supports the possibility of a bullish continuation if the breakout confirms.
Strategy: Buy
Target: Rs 300
Stop-Loss: Rs 256
Cholamandalam Financial Holdings | CMP: Rs 1,881.1
Cholamandalam Financial Holdings witnessed a healthy retracement from its peak towards a key demand zone and is now showing signs of a potential reversal. The stock has recently broken out of a falling trendline while forming a strong bullish candle on the daily timeframe, indicating a shift in sentiment and the possibility of a fresh upward move. This breakout has been supported by a noticeable rise in trading volumes, further strengthening the bullish outlook.
The momentum setup also looks encouraging, with the RSI currently at 56.62 and trending strongly upwards, suggesting improving strength and buying interest. Additionally, the stock has taken support near its 200-day EMA and has recently crossed above its 20-day and 50-day EMAs, reflecting growing positivity in its overall structure and trend dynamics.
Strategy: Buy
Target: Rs 2,100
Stop-Loss: Rs 1,775
Jay Mehta, Technical Research, at JM Financial Services
Havells India | CMP: Rs 1,574
Havells is currently exhibiting a strong bullish bias, supported by multiple technical indicators. The stock has broken out of a declining channel pattern, which was part of a broader triangular consolidation pattern. This channel breakout was confirmed by a notable increase in trading volume, suggesting strong conviction from buyers.
A bullish gap on the chart further reinforces the positive sentiment. The price is trading comfortably above its 20-day and 50-day Exponential Moving Averages (EMAs) and is hovering around its 200-day EMA, a key long-term resistance level. Both the RSI and the Moving Average Convergence Divergence (MACD) are in positive territory, confirming the bullish momentum.
While the Average Directional Index (ADX) at 17 suggests that the trend’s momentum is not yet very strong, the positive Directional Movement Index (+DMI) is dominating the negative Directional Movement Index (-DMI), indicating that bullish pressure is significantly increasing compared to bearish pressure.
Strategy: Buy
Target: Rs 1,600
Stop-Loss: Rs 1,480
Gland Pharma | CMP: Rs 1,965.8
Gland Pharma is exhibiting a significant bullish reversal, supported by a strong technical breakout and a confluence of positive indicators. The stock has broken out of a wedge pattern, with the bottom of the wedge aligning precisely with the 38.2% Fibonacci retracement level. This breakout was confirmed by a notable surge in volume, indicating strong conviction from buyers.
The price is trading well above all its key EMAs, confirming the upward trend. The RSI is also trading in positive territory, and a bullish crossover in MACD and the signal line has occurred in a recent trading session, reinforcing the positive momentum building up.
The trend indicators suggest that the previous negative trend is fading, and a new bullish trend may be about to begin. The positive Directional Movement Index (+DMI) has crossed above the negative Directional Movement Index (-DMI), which is a signal of increasing bullish strength and a potential trend reversal.
Strategy: Buy
Target: Rs 2,050, Rs 2,150
Stop-Loss: Rs 1,845
Amara Raja Energy & Mobility | CMP: Rs 1,051.7
Amara Raja Energy & Mobility is displaying a significant shift in trend, with a strong bullish bias. The stock has recently broken out of a declining channel pattern and, after consolidating in a tight range, has given a fresh breakout above the range. This latest move has also pushed the price above its 200-day EMA, suggesting bullish strength in price.
The breakout is being supported by a notable increase in trading volume, which reinforces the strength of the move. Both the RSI and the MACD are trading in bullish territory, confirming the positive momentum.
The trend indicators suggest that the bullish trend is not only continuing but is also gaining momentum. The positive Directional Movement Index (+DMI) is strong and is positioned well above the negative Directional Movement Index (-DMI), indicating a robust and accelerating upward trend.
Strategy: Buy
Target: Rs 1,120, Rs 1,200
Stop-Loss: Rs 978
Riyank Arora, Technical Analyst at Mehta Equities
Prostarm Info Systems | CMP: Rs 226.42
Prostarm Info has given a good breakout above its immediate resistance mark of Rs 215 and has managed to give a follow-up buying above its immediate highs as well. With the stock trading around Rs 226, the risk-reward ratio seems favourable for buyers. The RSI on the daily timeframe charts, being around 62, is indicating strong momentum conditions for the stock with potential upside targets towards Rs 255 and above.
Strategy: Buy
Target: Rs 255
Stop-Loss: Rs 210
Pondy Oxides and Chemicals | CMP: Rs 1,284.8
Pondy Oxides has successfully managed to re-test the breakout level and form a bullish morning star pattern at its important support levels. With the risk-reward ratio in favour and RSI on daily timeframe charts being around 65, the stock is indicating strong momentum conditions. The stock has additionally seen a good breakout above its multi-year highs on its weekly and monthly timeframe charts.
Strategy: Buy
Target: Rs 1,400, Rs 1,450
Stop-Loss: Rs 1,200
Jayaswal Neco Industries | CMP: Rs 67
Jayaswal Neco has witnessed a strong breakout above its February 2024 highs and managed to close well above the same. With RSI on daily timeframe charts being around 72, the stock is indicating strong momentum conditions. With the price taking off above its multi-year highs, we believe that the stock can move higher towards potential targets of Rs 80 and above.
Strategy: Buy
Target: Rs 80
Stop-Loss: Rs 60
Tata Motors | CMP: Rs 705.85
Tata Motors witnessed a strong breakout above its immediate resistance mark of Rs 706 and is currently seen re-testing its breakout level. With RSI on daily timeframe charts being around 58, the stock is indicating strong momentum conditions, and we believe it can head higher towards Rs 750 and above. With the stock re-testing its breakout level, the risk-reward ratio is in favour of bulls.
Strategy: Buy
Target: Rs 750
Stop-Loss: Rs 680
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!
