Equity benchmarks - Nifty 50 and BSE Sensex - closed mixed after a volatile session on May 21, with approximately 1,422 equity shares declining and 900 shares advancing on the NSE. The market is expected to consolidate in the coming sessions, though the overall trend remains in favour of bulls. Here are some trading ideas for the near term.
Riyank Arora, Technical Analyst at Mehta Equities
Aditya Birla Fashion and Retail | CMP: Rs 281.40
The stock has given a strong breakout above its resistance level of Rs 276.95 on daily charts and successfully managed to close above it. With the RSI (relative strength index 14) near 71.87, the overall momentum looks strong. The volumes have picked up significantly, rising to nearly 3.5 times its average (30 days) volume. The stock appears poised for an upside move towards Rs 320 and above. A stop-loss should be set at Rs 272 to manage risk effectively.
Strategy: Buy
Target: Rs 320
Stop-Loss: Rs 272
Action Construction Equipment | CMP: Rs 1,570.25
The stock has broken out from its channel consolidation pattern and successfully closed above it. With RSI (14) crossing the 60 mark and showing a strong uptick, along with a sharp increase in volumes (nearly 3 times its average (30 days) volume), the stock looks set for a strong upside move towards Rs 1,700 and above. A strict stop-loss should be set at Rs 1,520 to manage risk effectively.
Strategy: Buy
Target: Rs 1,700
Stop-Loss: Rs 1,520
Azad Engineering | CMP: Rs 1,544.20
The stock has given a strong breakout from an ascending triangle pattern, successfully closing above its swing high resistance level of Rs 1,465. With volumes rising to nearly 3 times its average (30 days) volume and RSI (14) crossing the 75 mark, the overall momentum looks extremely strong. The stock is expected to move towards a calculated price target of Rs 1,800 and above. A strict stop-loss should be set at Rs 1,420 to manage risk effectively.
Strategy: Buy
Target: Rs 1,800
Stop-Loss: Rs 1,420
Om Mehra, Technical Analyst, SAMCO Securities
Aurobindo Pharma | CMP: Rs 1,218.25
The stock is forming higher highs and higher lows, indicating a sustained uptrend. It has broken through the crucial resistance range of Rs 1,185-1,190 and is trading comfortably above its short-term (20-day) and medium-term (50-day) moving averages. The RSI is holding steady at 68 and continues to rise, indicating strengthening momentum.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 1,218.25 for a target price of Rs 1,300. The stop-loss can be kept at Rs 1,180.
Strategy: Buy
Target: Rs 1,300
Stop-Loss: Rs 1,180
Steel Authority of India | CMP: Rs 174.35
The stock experienced a correction from its peak and has established strong support at the 78.6 percent Fibonacci retracement level. The RSI has stabilized, holding above 65 levels. Additionally, the stock continues to trade above the 20-day daily moving average (DMA).
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 174.35 for a target price of Rs 194. The stop-loss can be kept at Rs 165.
Strategy: Buy
Target: Rs 194
Stop-Loss: Rs 165
BHEL | CMP: Rs 319.20
The stock is forming higher highs and higher lows, indicating a sustained uptrend. It is placed well above its short-term (20-day) moving averages. The MACD (Moving Average Convergence Divergence) positive crossover in the daily chart indicates strength in the stock. The former resistance has transitioned into a support level.
Hence, based on the above technical structure, one can initiate a long position at CMP Rs 319.20 for a target price of Rs 352. The stop-loss can be kept at Rs 305.
Strategy: Buy
Target: Rs 352
Stop-Loss: Rs 305
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas
Britannia Industries | CMP: Rs 5,178.1
The stock has broken out of a symmetrical triangle pattern on the daily charts and started the next leg of an upmove. One can buy the stock with a target of Rs 5,350 and a stop-loss of Rs 5,085.
Strategy: Buy
Target: Rs 5,350
Stop-Loss: Rs 5,085
Lupin | CMP: Rs 1,683.85
The stock has formed a Bullish Flag pattern on the weekly charts, and we anticipate a breakout on the upside. One can buy the stock with a target of Rs 1,815 and a stop-loss at Rs 1,621.
Strategy: Buy
Target: Rs 1,815
Stop-Loss: Rs 1,621
Indian Bank | CMP: Rs 575.15
The stock has broken out of an Inverted Head and Shoulders pattern on the weekly charts, indicating a resumption of the upmove. One can buy the stock for a target of Rs 623 and a stop-loss at Rs 555.
Strategy: Buy
Target: Rs 623
Stop-Loss: Rs 555
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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