In the absence of bulls, bears further strengthened their grip on the market on May 30, the monthly F&O expiry day, and dragged the benchmark Nifty 50 below the 22,500 mark for the first time since May 17. The lower highs-lower lows formation continued with a negative bias in the momentum indicator Relative Strength Index (RSI). However, the positive point is that the index managed to sustain above 50 percent of the Fibonacci retracement level as well as the 20-day SMA (Simple Moving Average). The benchmark BSE Sensex plunged 0.83 percent, and the Nifty 50 slipped 0.95 percent, forming a bearish candlestick pattern on the daily charts. The market breadth remained negative, with 1,757 shares declining against 509 shares advancing on the NSE. The immediate support for the Nifty 50 is likely to be seen at 22,400, followed by 22,300. In case of a bounce back, the 22,600-22,700 levels are the immediate ones to watch. Here are some trading ideas for the near term:
Shrikant Chouhan, Head Equity Research at Kotak Securities
Bharti Airtel | CMP: Rs 1,377
On the weekly charts, Bharti Airtel's counter is in a rising channel chart formation with a higher high-higher low series pattern. Additionally, the technical indicator Average Directional Index (ADX) indicates a further uptrend from current levels, which could boost the bullish momentum in the near future. As long as the stock is trading above Rs 1,330, the uptrend formation is likely to continue. Above this level, the counter could move up to Rs 1,480.
Strategy: Buy
Target: Rs 1,480
Stop-Loss: Rs 1,330
Asian Paints | CMP: Rs 2,883.70
Asian Paints stock is in the accumulation zone, trading in a rangebound mode for the past many sessions. The texture of the chart formation and technical indicator Relative Strength Index (RSI) indicate that the counter is in oversold territory. Therefore, it is very likely to rebound from current levels for a new leg of the up move in the coming horizon.
Strategy: Buy
Target: Rs 3,100
Stop-Loss: Rs 2,790
ICICI Bank | CMP: Rs 1,113.7
After a remarkable up move, ICICI Bank stock has been having a breather for the last few sessions. The consolidation in the rangebound structure suggests a bullish continuation chart formation. Moreover, the stock comfortably closed above its short-term moving average. Therefore, it is likely to resume its uptrend from the current levels.
Strategy: Buy
Target: Rs 1,190
Stop-Loss: Rs 1,080
Virat Jagad, Technical Research Analyst at Bonanza Portfolio
Emami | CMP: Rs 611.85
Emami has given a breakout of the falling trendline in a weekly time frame, indicating an upward move. The rise in volume during the breakout indicates buyers' interest in the security. The price is trading above the 50 EMA (Exponential Moving Average), which indicates an uptrend in the security. The momentum indicator RSI is moving in the northern direction, supporting the price action.
Strategy: Buy
Target: Rs 680, Rs 750
Stop-Loss: Rs 580, Rs 570
Page Industries | CMP: Rs 37,964.75
Page Industries has given a breakout of the Double Bottom pattern, signaling a change in trend (i.e. positive). The increase in volume during the buying days and fall in volume during selling days indicates accumulation in the security. Volume increasing during the breakout indicates that buyers are purchasing the security at CMP and are expecting an upward move. The price is trading above the 21 EMA, indicating an uptrend in the security. The momentum indicator RSI trading in a higher range also indicates an uptrend in the security.
Strategy: Buy
Target: Rs 39,800, Rs 41,350
Stop-Loss: Rs 35,600, Rs 34,200
EID Parry India | CMP: Rs 676.75
On a weekly timeframe, EID Parry has given a breakout of an Ascending Triangle on the upside, indicating a continuation in the uptrend. The spurt in volume during the breakout indicates buyers' interest. The price has taken support at the 50 EMA and moved upward, indicating an up move in the security. The momentum indicator RSI, after cooling off, has started moving in the northern direction, supporting the price action.
Strategy: Buy
Target: Rs 780, Rs 850
Stop-Loss: Rs 613, Rs 560
RHI Magnesita India | CMP: Rs 736.35
RHIM has been able to settle above the 10-week close, indicating a bullish trend. Buyers have shown interest in the security, leading it to close above the resistance. The increase in volume indicates interest in the security. The price has been able to close above the 50 EMA, indicating a bullish trend. On the momentum front, RSI is making higher highs, supporting the price action.
Strategy: Buy
Target: Rs 830, Rs 890
Stop-Loss: Rs 650, Rs 590
Chandan Taparia, Head - Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
Dixon Technologies | CMP: Rs 9,308
Dixon Technologies is in an overall uptrend and holding gains at higher zones. It has given a consolidation breakout on a daily scale and is relatively outperforming within the IT space. The momentum indicator RSI is positively placed, which has bullish implications.
Strategy: Buy
Target: Rs 10,000
Stop-Loss: Rs 9,000
Samvardhana Motherson International | CMP: Rs 151.7
Motherson has given a trendline breakout on the weekly chart and achieved the highest daily close ever. The breakout is supported by a surge in volumes, which may support the ongoing up move. The momentum indicator RSI is positively placed, which has bullish implications.
Strategy: Buy
Target: Rs 165
Stop-Loss: Rs 145
Bajaj Finance | CMP: Rs 6,616.45
Bajaj Finance has given a support trendline breakout on a daily scale and closed below the same. The stock is in an overall downtrend and continuously forming lower top-lower bottom patterns on the daily chart.
Strategy: Sell
Target: Rs 6,100
Stop-Loss: Rs 6,850
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.
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