The benchmark indices finished the rangebound trading flat on February 25, while the market breadth remained in favour of bears, with about 1,615 shares declining against 988 advancing shares on the NSE. The benchmark Nifty 50 may rebound in the upcoming session, but the 'sell on rally' strategy continues given the prevailing bearish sentiment. Below are some trading ideas for the near term:
Amol Athawale, VP- Technical Research at Kotak Securities
Ashok Leyland | CMP: Rs 227.23
On the daily charts, Ashok Leyland has formed a strong bullish series of higher highs and higher lows. Another important point is that the stock is currently trading well above both short-term and medium-term averages, suggesting that the uptrend is likely to continue in the near term. For positional traders, Rs 219 would be the key support zone. If the stock remains above this level, a strong upward wave is likely to continue. On the higher side, it could rise to Rs 240.
Strategy: Buy
Target: Rs 240
Stop-Loss: Rs 219
Chambal Fertilisers and Chemicals | CMP: Rs 564.2
On Tuesday, Chambal Fertilisers rallied by 4.9 percent and formed a long bullish candle on the daily charts. Technically, the stock is maintaining a higher bottom formation on the daily charts and is currently trading comfortably above the 20-day and 50-day simple moving averages (SMA), which is largely positive. We believe that the short-term trend of the stock is positive, and as long as it trades above Rs 545, the bullish sentiment is likely to continue.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 545
HDFC Bank | CMP: Rs 1,682.35
After a short-term correction, HDFC Bank found support near the 200-day SMA and reversed. Technically, on daily charts, the stock has formed a reversal pattern near the 200-day SMA, which supports a strong possibility of a fresh uptrend rally from the current levels. Looking at the overall pattern, it offers a buying opportunity for positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue up to the Rs 1,750 level.
Strategy: Buy
Target: Rs 1,740, Rs 1,750
Stop-Loss: Rs 1,650
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Cholamandalam Financial Holdings | CMP: Rs 1,568.4
On the daily chart, Cholamandalam Financial Holdings recently broke out of the channel and, since then, has been consolidating in a range of Rs 1,430 to Rs 1,550 levels. In the previous session, prices finally managed to breach its resistance of Rs 1,550 level and also managed to close above it with a significant rise in volume. Also, prices gained more than 4% despite major indices falling, which is a strong bullish sign.
On the daily chart, prices have closed above their upper Bollinger bands, showcasing increasing bullish sentiment in the stock. Along with this, the MACD (Moving Average Convergence Divergence) bullish crossover is acting as a double confirmation for our stance. In summary, the current trend for Cholamandalam Financial Holdings looks to have shifted to the positive side. A decisive break above Rs 1,605 levels is a must for bullish momentum to continue, with targets of Rs 1,680 followed by Rs 1,770 levels. On the downside, Rs 1,530 levels is the nearest support to watch out for!
Strategy: Buy
Target: Rs 1,680, Rs 1,770
Stop-Loss: Rs 1,530
Bajaj Finance | CMP: Rs 8,488.8
n the previous session, Bajaj Finance surged by 1.60%, outperforming both its sector and the Nifty’s performance, which is a strong positive sign. Prices, after 7 sessions, have given a close above their prior candle’s high, which is a bullish sign. Currently, prices are trading near their important resistance of Rs 8,530 levels. A decisive break above it can intensify buying pressure, leading to a move towards fresh highs. Moreover, Parabolic SAR dots have started to trade below the prices, suggesting that bulls are getting active in the stock. Also, the RSI is trading at 67 levels, giving prices the space to trend further.
In summary, the current trend for Bajaj Finance is on the positive side. A break above Rs 8,530 levels can further accelerate positive momentum towards Rs 8,870, followed by Rs 9,260 levels. On the downside, Rs 8,170 levels is the nearest support to watch out for!
Strategy: Buy
Target: Rs 8,870, Rs 9,260
Stop-Loss: Rs 8,170
TCPL Packaging | CMP: Rs 4,152.4
TCPL Packaging closed on a positive note with a massive gain of 7.79% on Tuesday. The stock has formed a rounding bottom pattern. The price has recently closed above Rs 3,830, confirming the breakout of the said pattern. After breaking out of the pattern, prices retested the neckline, and a sharp bounce on the upside was seen in the previous trading session. On the daily chart, the ADX (Average Directional Index) is suggesting strong momentum can continue in this stock, as it is showing readings of 35.70, which is above 25. For now, one should use a buy-on-dips approach to ride the trend instead of catching highs.
In summary, the current trend for TCPL Packaging is bullish. Use dips towards Rs 4,050-4,100 as a buying opportunity for a move towards Rs 4,500-4,550 levels, as long as Rs 3,940 holds on the downside.
Strategy: Buy
Target: Rs 4,500, Rs 4,550
Stop-Loss: Rs 3,940
Om Mehra, Technical Analyst at Samco Securities
Nestle India | CMP: Rs 2,250.4
Nestle India has been consolidating near key support levels, setting the stage for a potential breakout. The stock is trading above the 10-day moving average (DMA), indicating strength in the trend. A steady rise in volumes suggests strong accumulation, reinforcing the bullish sentiment. The RSI is turning upwards, indicating improving momentum, while the stock remains resilient despite broader market fluctuations.
A breakout above its recent swing high could trigger a fresh rally, taking the stock to new highs. Any dip towards Rs 2,235-2,240 zones could offer a better buying opportunity. Hence, based on the technical structure, one can initiate a long position at CMP (current market price) for a target price of Rs 2,380. The stop-loss can be kept at Rs 2,200.
Strategy: Buy
Target: Rs 2,380
Stop-Loss: Rs 2,200
Bharti Airtel | CMP: Rs 1,641.4
Bharti Airtel is exhibiting strong accumulation near support levels, indicating the potential for a fresh uptrend. The stock has formed a bullish engulfing pattern on the daily chart, further strengthening its outlook. Volume expansion aligns with bullish momentum, and the RSI remains in a favourable zone, confirming positive strength. If the stock sustains above Rs 1,645, it may surge further. Additionally, any dip toward the Rs 1,630 zone may offer an opportunity to accumulate. Additionally, the stock is holding above the 23.6% Fibonacci retracement level, which adds to the bullish outlook. Hence, based on the technical structure, one can initiate a long position at CMP for a target price of Rs 1,715. The stop-loss can be kept at Rs 1,605.
Strategy: Buy
Target: Rs 1,715
Stop-Loss: Rs 1,605
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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