The benchmark indices continued their upward journey for the second straight session on October 29, rising half a percent with positive market breadth. About 1,520 shares advanced against 980 declining shares on the NSE. The market may consolidate until decisively climbing above short-term moving averages in the upcoming sessions. Below are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors
Multi Commodity Exchange of India | CMP: Rs 6,824.75
Since the past two trading sessions, MCX India has rallied by more than 5 percent, suggesting increasing buying interest in the stock. MCX has managed to outperform despite major indices falling. On the daily chart, prices are moving up in a higher high and higher lows structure, which keeps the overall tone positive. The RSI (Relative Strength Index) is trading near the overbought zone, so one should use a buy-on-dips approach to ride the trend. In summary, the current trend for MCX is bullish. Use dips as a buying opportunity for a move towards Rs 6,950, followed by Rs 7,100. On the downside, Rs 6,540 is the crucial support level.
Strategy: Buy
Target: Rs 6,950, Rs 7,100
Support: Rs 6,540
Bharat Electronics | CMP: Rs 283.65
In the previous session, BEL closed above the previous day’s high and gained more than 5 percent in a single day. Prices reversed from the channel support and completed their journey toward the upper end of the channel. A decisive break above it can confirm that the trend has shifted to the positive side. Additionally, the MACD (Moving Average Convergence Divergence) indicator is about to give a bullish crossover. A follow-up action can confirm the crossover, which can result in a fresh rise in the stock. In summary, BEL showed a sharp rally in the previous session. A break above Rs 285 can confirm a trend reversal, which can lift prices higher towards Rs 300, followed by Rs 315, as long as the Rs 270 level holds on the downside.
Strategy: Buy
Target: Rs 300, Rs 315
Stop-Loss: Rs 270
SJS Enterprises | CMP: Rs 1,149.8
SJS Enterprises showed a sharp rally in the previous session of 11 percent in a single trading day! The stock has formed a rounding bottom pattern. The price has closed above Rs 1,140, confirming the breakout of the said pattern. On the daily chart, the ADX (Average Directional Index) suggests strong momentum can continue in this stock, showing readings of 26.47, which is above 25. After the sharp rally, one should use a buy-on-dips approach to ride the trend. In summary, the current trend for SJS is positive. Use dips towards Rs 1,130-1,140 as a buying opportunity for a move towards Rs 1,210-1,230, as long as Rs 1,100 holds on the downside.
Strategy: Buy
Target: Rs 1,210, Rs 1,230
Stop-Loss: Rs 1,100
Om Mehra, Technical analyst at Samco Securities
Max Healthcare Institute | CMP: Rs 994.5
Max Healthcare Institute has recently broken out from a consolidation range, displaying strength as it trades above its 50-day simple moving average. The daily RSI at 60 indicates that the stock is entering a bullish zone, supported by growing buying momentum. Furthermore, the stock’s breakout above horizontal resistance, accompanied by a noticeable increase in volume, strengthens the bullish outlook. Max Healthcare is also trading above its 100-day moving average, indicating a positive alignment with medium- to long-term trends. Hence, based on the technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 1,090
Stop-Loss: Rs 945
BSE | CMP: Rs 4,284
After a significant correction, BSE has consolidated and formed a strong base around the Rs 4,200 level. The daily RSI stands at 55, indicating healthy momentum, while the double bottom formation adds further strength to the stock’s recovery potential. Trading above both its 9 and 20-day moving averages suggests a sustained uptrend. Moreover, elevated delivery volumes in the past two sessions highlight increased investor interest and possible accumulation at current levels, strengthening a positive outlook. Hence, based on the technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 4,850
Stop-Loss: Rs 3,900
Life Insurance Corporation of India | CMP: Rs 934.4
Life Insurance Corporation has formed a strong base around the Rs 900 level. LIC has shown signs of a potential rebound, with the stock recently bouncing off its lower Bollinger Band. The RSI has begun to recover from oversold territory, indicating a shift in sentiment as buying momentum picks up. Additionally, there has been a slight uptick in volume, supporting a short-term rally. Hence, based on the technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 1,040
Stop-Loss: Rs 885
Riyank Arora, Technical Analyst at Mehta Equities
Bharti Airtel | CMP: Rs 1,637
Bharti Airtel has recently touched its immediate support level at Rs 1,630, showing significant lower-level rejection wicks, which signal strong buying interest. With the RSI (14) around 40 and gradually declining, this wick rejection is expected to renew buying momentum, potentially driving the stock towards Rs 1,700 and higher. A strict stop-loss at Rs 1,610 is recommended to effectively manage risk.
Strategy: Buy
Target: Rs 1,700
Stop-Loss: Rs 1,610
Aditya Birla Capital | CMP: Rs 204.51
Aditya Birla Capital is trading near a key support level of Rs 199, which has demonstrated resilience in recent sessions. A rebound from this level suggests a possible uptrend as buying interest strengthens. With the RSI (14) around 34 and beginning to trend upward, the stock could advance to Rs 215. Implementing a strict stop-loss at Rs 199 is recommended to mitigate potential downside.
Strategy: Buy
Target: Rs 215
Stop-Loss: Rs 199
Trent | CMP: Rs 7,410
Trent is exhibiting strong bullish momentum, maintaining support above Rs 7,150, which underscores a positive trend. Recent price action shows increased buyer confidence, while the RSI (14) supports a bullish stance near 45. Provided this momentum continues, the stock is positioned to reach Rs 7,800. A strict stop-loss at Rs 7,150 is suggested to manage risk effectively.
Strategy: Buy
Target: Rs 7,800
Stop-Loss: Rs 7,150
Dr Reddy's Laboratories | CMP: Rs 1,274.7
Dr Reddy's Laboratories has broken through a critical support level of Rs 1,297.15, closing below this mark—a signal of potential downside continuation. The technical structure appears bearish, with increasing volumes and an RSI indicating a downtrend. With these factors in play, the stock is expected to target levels around Rs 1,200. A stop-loss at Rs 1,300 is advisable to control risk.
Strategy: Sell
Target: Rs 1,200
Stop-Loss: Rs 1,300
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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