The market entered into a consolidation phase after recording more than a 1 percent rally in the previous session, finishing flat on April 29. The market breadth was slightly in favour of bears, as about 1,346 shares declined against 1,185 advancing shares on the NSE. The benchmark indices need to decisively close above the previous day's high for a further upward move; until then, consolidation may be seen. Below are some short-term trading ideas to consider:
Amol Athawale, VP Technical Research at Kotak Securities
Infosys | CMP: Rs 1,497.5
Post a declining trend, Infosys reversed from its important support zone. The stock has formed a rounding bottom chart pattern and is in a steady up move. The technical indicator RSI (Relative Strength Index) is also indicating a further uptrend from current levels, which could boost bullish momentum in the coming horizon, making it a favourable candidate in terms of risk-reward perspective.
Strategy: Buy
Target: Rs 1,600
Stop-Loss: Rs 1,445
Voltas | CMP: Rs 1,264.6
Post a decline from the higher levels, Voltas rebounded from its demand zone and witnessed a steady recovery from the lower levels. Additionally, on the daily charts, the counter has formed a higher-low formation. The gradual up moves in the counter suggest a new leg of a bullish trend from the current levels. As long as the stock is trading above Rs 1,215, the bullish texture is likely to continue, above which the counter could move up to Rs 1,350.
Strategy: Buy
Target: Rs 1,350
Stop-Loss: Rs 1,215
Bharti Airtel | CMP: Rs 1,823.8
After the remarkable up move of the last few weeks, Bharti Airtel witnessed a short-term correction from the higher levels. However, on the daily charts, the counter is available near its important retracement zone. The formation suggests a revival of the uptrend from the current levels. For traders, Rs 1,760 would be the key support level to watch out for, above which the uptrend structure could continue towards Rs 1,950.
Strategy: Buy
Target: Rs 1,950
Stop-Loss: Rs 1,760
Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors
Bharat Dynamics | CMP: Rs 1,536.2
In the previous session, defence sectors showed good buying, wherein Bharat Dynamics managed to outperform its sector. On the daily chart, prices were earlier consolidating near the neckline of a Double Bottom pattern. At the start of this week, prices broke out of it and have shown a rally of more than 11% in just 2 days. The pattern target is much higher, so we can expect fresh highs in this stock in the coming weeks.
Additionally, on the daily chart, prices have just given a breakout above the upper Bollinger Bands, which is also a positive sign. In summary, the trend for the stock is bullish. A break above Rs 1,560 can lift the price further higher towards Rs 1,640 followed by Rs 1,720 levels. On the other hand, Rs 1,480 is the important support.
Strategy: Buy
Target: Rs 1,640, Rs 1,720
Stop-Loss: Rs 1,480
Cochin Shipyard | CMP: Rs 1,652.4
In the previous session, Cochin Shipyard rallied 10% with the largest volume since July 2024. The stock had been trading within a downward-sloping channel for the past 9 months. In the previous session, prices finally managed to give a breakout from it, which is a positive signal.
On the daily chart, prices recently took support from the baseline (red line) of the Ichimoku cloud, and we saw a sharp bounce of more than 18% since. Post the sharp rise, the possibility of profit booking cannot be ruled out. One can use it as an additional opportunity to enter into the trend. The above view is valid as long as we do not see a close below the prior day’s low.
In summary, the current trend for Cochin Shipyard is bullish. Use dips as a buying opportunity with targets of Rs 1,730 followed by Rs 1,800 levels. On the downside, Rs 1,565 is the nearest support to watch out for.
Strategy: Buy
Target: Rs 1,730, Rs 1,800
Stop-Loss: Rs 1,565
Max Financial Services | CMP: Rs 1,306.8
Max Financial Services has been rising steadily since April. In the previous session, the stock made a lifetime high. Also, the stock is following a simple bar technique method as it has managed to close above its prior day’s high for the past two sessions, which keeps the overall tone on the positive side. On the daily chart, the stock has formed a rounding bottom pattern.
Prices have managed to close above Rs 1,306, which confirms the breakout of the said pattern. Since the RSI is also in the overbought zone, instead of catching tops, one should use a buy-on-dips method. In summary, the trend for the stock is on the side of bulls. One can use dips towards Rs 1,260 as a buying opportunity with targets of Rs 1,360 followed by Rs 1,420, as long as Rs 1,240 remains protected on the downside.
Strategy: Buy
Target: Rs 1,360, Rs 1,420
Stop-Loss: Rs 1,240
Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities
CARE Ratings | CMP: Rs 1,209.7
CARE Ratings has broken out from the downward-sloping trendline on the weekly chart. The stock price has also broken out from previous swing highs on the daily chart. The stock price has surpassed both the 20- and 50-day EMAs. The daily RSI has moved above 50, indicating a sustainable uptrend. The daily MACD (Moving Average Convergence Divergence) is now placed above the signal and equilibrium lines.
Strategy: Buy
Target: Rs 1,312, Rs 1,371
Stop-Loss: Rs 1,105
Patanjali Foods | CMP: Rs 1,918.4
Patanjali Foods has broken out from a symmetrical triangle on the weekly chart. The stock price is hovering near its 52-week and all-time highs. The stock is placed above all important moving averages. The weekly RSI has moved above 50, indicating a sustainable uptrend. The weekly MACD is placed above both the equilibrium and signal lines. The stock price has started forming higher tops and higher bottoms on the daily chart.
Strategy: Buy
Target: Rs 2,033, Rs 2,145
Stop-Loss: Rs 1,770
Alkem Laboratories | CMP: Rs 5,030.8
Alkem Laboratories broke out from an Inverted Head and Shoulder pattern on the daily chart and entered a correction phase. The stock price is now placed above the 20- and 50-day EMAs. The daily RSI is placed above 50, indicating a sustainable uptrend. The daily MACD is also placed above the signal and equilibrium lines.
Strategy: Buy
Target: Rs 5,500, Rs 5,704
Stop-Loss: Rs 4,920
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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