Trade Spotlight: How should you trade Britannia, Godrej Properties, ICICI Bank, Bikaji Foods, and others on Wednesday?

Stocks Ideas

The benchmark indices rebounded, tracking positive Asian cues, but could not sustain those gains due to profit booking, ending 0.3 percent down and extending losses for a third straight session on August 6. The Nifty 50 is expected to consolidate with support at the 23,900-23,800 zone, while in case of a rebound, the 24,400-24,500 area is the one to watch, experts said. On the NSE, about 1,550 shares declined against 812 advancing shares. Here are some trading ideas for the near term:

Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors

Jyothy Labs | CMP: Rs 536.35

Jyothy Labs stood out in the previous session, rising by 4.54 percent despite negative market sentiments. The stock also closed above the previous day’s high, which is a positive sign. Prices are moving towards the 52-week high of Rs 573 levels. The stock took support at the middle of the Bollinger band and bounced back on the upside, reflecting an increase in bullish sentiments in the underlying. Support according to the middle band of the Bollinger band is at Rs 515 levels. The ADX (Average Directional Index) is currently trading above 25, and with the DI- (Directional Indicator) also rising, this suggests bullish momentum in the stock. In a nutshell, the overall trend for Jyothy Labs is bullish. Long positions can be created around Rs 545 levels.

Strategy: Buy

Target: Rs 573, Rs 585

Stop-Loss: Rs 515

Britannia Industries | CMP: Rs 5,854.5

Britannia ended the previous session on a positive note despite the major indices falling, amidst overall choppy movement. The stock closed with a gain of 2.75 percent. On the chart, we can see that the baseline (Red) of the Ichimoku cloud has acted as strong support. Recently, prices have bounced back from this level on the upside. The ADX readings are above 25, suggesting that good momentum can continue in the stock and also act as a double confirmation for our bullish stance. In a nutshell, the trend for Britannia remains positive. One can use a buy-on-dips approach for a target of Rs 6,050, followed by Rs 6,300, as long as Rs 5,600 remains protected on the downside.

Strategy: Buy

Target: Rs 6,050, Rs 6,300

Stop-Loss: Rs 5,600

Century Enka | CMP: Rs 665.4

Century Enka has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a massive gain of 13.13 percent. On the daily chart, prices formed a bullish candle in the previous session. The price is moving in a rectangular range over the last few days, indicating accumulation in the stock. If the price closes above this trading range, it will result in a bullish breakout of the rectangular pattern. The price is trading above the Ichimoku cloud, which indicates that the short-term bias is bullish. In short, the trend for this stock is positive. Use dips towards Rs 655-660 as a buying opportunity for a move towards Rs 710-720 levels, as long as Rs 630 holds on the downside.

Strategy: Buy

Target: Rs 710, Rs 720

Stop-Loss: Rs 630

Om Mehra, Technical Analyst at Samco Securities

Bikaji Foods International | CMP: Rs 736

Bikaji Foods International is forming higher highs and higher lows, indicating a sustained uptrend. It is positioned well above its short-term (20-day) moving average. The RSI (Relative Strength Index) comfortably holds at 59 levels. Moreover, a noticeable increase in volume accompanies the stock's upward movement, further confirming the bullish outlook. Based on this technical structure, one can initiate a long position at the current market price (CMP) of Rs 736 with a target price of Rs 800.

Strategy: Buy

Target: Rs 800

Stop-Loss: Rs 700

PI Industries | CMP: Rs 4,264.75

PI Industries broke through the resistance level of Rs 4,200 and has since undergone a minor correction. However, the stock is now transitioning that former resistance into a support zone. The stock is trading well above the 20-day moving average (DMA) with above-average volume. The daily RSI remains stable at 63 levels. Based on this technical structure, one can initiate a long position at the CMP of Rs 4,265 with a target price of Rs 4,500.

Strategy: Buy

Target: Rs 4,500

Stop-Loss: Rs 4,030

Syngene International | CMP: Rs 820.95

Both daily and weekly timeframes indicate that the trend remains strong for Syngene International. The previous resistance has been breached with strong volume, and the stock is trading above its 20-day moving average (DMA). The RSI is holding steady above 65 levels. Based on this technical structure, one can initiate a long position at the CMP of Rs 820.95 with a target price of Rs 910.

Strategy: Buy

Target: Rs 910

Stop-Loss: Rs 780

Riyank Arora, Technical Analyst at Mehta Equities

HDFC Bank | CMP: 1,601

HDFC Bank has reached its anchor VWAP (Volume Weighted Average Price) support level of Rs 1,615, indicating positive momentum and strength at lower levels. Given the current market volatility, we recommend buying HDFC Bank as a safe investment. Maintain a strict stop-loss at Rs 1,585 to manage risk, with a potential upside target of Rs 1,670 and above. The RSI (14) at around 47 suggests that the stock is poised for a momentum pickup in the coming days.

Strategy: Buy

Target: Rs 1,670

Stop-Loss: Rs 1,585

ICICI Bank | CMP: 1,166.85

ICICI Bank has reached a critical support level of Rs 1,170 on the daily timeframe charts, indicating signs of a reversal from lower levels. Despite the volatile market trend, the stock is expected to rise towards the target of Rs 1,200 and above. Implement a strict stop-loss at Rs 1,150 to effectively manage risk. The RSI (14) on daily charts, being around 37, indicates slightly oversold conditions, offering a good risk-reward opportunity.

Strategy: Buy

Target: Rs 1,200

Stop-Loss: Rs 1,150

Godrej Properties | CMP: Rs 2,926.6

Godrej Properties has touched its crucial trendline support at Rs 2,811 and is holding well above this level. With a positive overall trend and a favourable business update, the stock is expected to gradually increase towards the target of Rs 3,100 and above. Maintain a strict stop-loss at Rs 2,775 to manage risk. The RSI (14) at around 39, coupled with an uptick, indicates that momentum is gradually picking up.

Strategy: Buy

Target: Rs 3,100

Stop-Loss: Rs 2,775

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.