The benchmark indices recorded a new closing high amid a volatile session on August 29, with 1,647 shares declining and 715 shares advancing on the NSE. The record-high journey in the markets is expected to continue, but with intermittent consolidation. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
Brigade Enterprises | CMP: Rs 1,202.2
After the recent sell-off from higher levels, the downward momentum has stopped. On the weekly charts, Brigade Enterprises has found support and reversed its trend from an important retracement zone. The chart formation and the technical indicator RSI (Relative Strength Index) suggest further bullish movement from the current levels in the coming horizon.
Strategy: Buy
Target: Rs 1,290
Stop-Loss: Rs 1,160
Wipro | CMP: Rs 538.7
On the daily chart, after a vertical rally from the lows of Rs 450 to Rs 580, Wipro corrected and traded within a broader range for a few sessions. However, a breakout from its Inverse Head and Shoulders chart pattern, along with a close above the 10-day SMA (Simple Moving Average), is evident, indicating a new leg of an uptrend from current levels.
Strategy: Buy
Target: Rs 575
Stop-Loss: Rs 520
State Bank of India | CMP: Rs 814.5
State Bank of India is in an accumulation zone, trading in a rangebound mode for the past several sessions. The texture of the chart formation and the RSI indicator suggests that the counter is likely to break out from the rectangle formation, leading to a new leg of an up move in the near term.
Strategy: Buy
Target: Rs 870
Stop-Loss: Rs 787
Chandan Taparia, Head - Equity Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Hindustan Petroleum Corporation | CMP: Rs 415.85
A Mat Hold Candlestick pattern has appeared with an upside break, indicating bullish sentiment in HPCL. The MACD (Moving Average Convergence Divergence) line has crossed the signal line from below, suggesting upward buying momentum.
Strategy: Buy
Target: Rs 440
Stop-Loss: Rs 402
Bajaj Finserv | CMP: Rs 1,755.65
Bajaj Finserv has broken out of its 5-month long consolidation zone on the upside with higher-than-average buying volumes, supporting the up move. The ADX (Average Directional Index) line is in a strong uptrend, and the positive DI (Directional Indicator) is well above the negative DI, indicating that the bullish trend has support.
Strategy: Buy
Target: Rs 1,830
Stop-Loss: Rs 1,714
Power Finance Corporation | CMP: Rs 554.5
A Pole and Flag pattern has appeared on the daily scale, which is a bullish continuation pattern, taking Power Finance Corporation near its all-time high price. The On-Balance Volume indicator has been making higher highs, indicating rising overall volume, which confirms the up move.
Strategy: Buy
Target: Rs 590
Stop-Loss: Rs 540
Mandar Bhojane, Equity Research Analyst at Choice Broking
ITC | CMP: Rs 505.1
ITC is forming a rounding bottom pattern with accumulation near the breakout level, accompanied by a significant increase in trading volume. This suggests a potential breakout. If the price manages to close above the Rs 510 level, it could potentially reach short-term targets of Rs 560 and Rs 600. On the downside, immediate support is located at Rs 480, which could be considered a buying opportunity on dips. The RSI is currently at 58.37 and trending upward, indicating increasing buying momentum.
Strategy: Buy
Target: Rs 560, Rs 600
Stop-Loss: Rs 460
Cholamandalam Investment and Finance Company | CMP: Rs 1,455.6
Cholamandalam Investment has broken out of a rounding bottom pattern and is consolidating above the breakout level on the weekly chart. This is accompanied by a significant increase in trading volume, suggesting bullish momentum. If the price manages to close above the Rs 1,460 level, it could potentially reach short-term targets of Rs 1,600 and Rs 1,650. On the downside, immediate support is located at Rs 1,310, which could present buying opportunities on dips. The RSI is currently at 62.8 and trending upward, indicating increasing buying momentum.
Strategy: Buy
Target: Rs 1,600, Rs 1,650
Stop-Loss: Rs 1,250
Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio
Britannia Industries | CMP: Rs 5,831.4
Britannia has regained strength in its upward move, taking support at the 0.382 Fibonacci level. The security closed above the previous five days' closes, indicating buyer dominance. The price also found support at the 50-day EMA (Exponential Moving Average), which is expected to act as a strong support level going forward. Trading above all major EMAs further confirms the uptrend in the security. Additionally, the RSI, after a period of consolidation, has started moving upwards, supporting the bullish price action. Based on this technical setup, a long position in Britannia can be considered.
Strategy: Buy
Target: Rs 6,200
Stop-Loss: Rs 5,600
Whirlpool of India | CMP: Rs 2,194.8
Whirlpool has closed at an all-time high with increasing volume, indicating strong buyer interest. It is trading above both the Base Line and the Conversion Line, signaling an uptrend. Additionally, the RSI has started moving northward, supporting the bullish price action. The DI+ is above the DI-, suggesting a continuation of the uptrend, while the ADX trading above the DI- indicates strength in this upward movement. Based on this technical setup, a buying opportunity is identified.
Strategy: Buy
Target: Rs 2,622
Stop-Loss: Rs 1,980
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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