Trade Spotlight: How should you trade Canara Bank, Aether Industries, SPARC and others?

Stock market trend

The benchmark equity indices closed higher on September 9, despite a volatile trading session. The BSE Sensex rose by 352 points, or 0.43 percent, to end the day at 81,535.80. The NSE Nifty 50 gained 88 points, or 0.36 percent, closing at 24,940. The Bank Nifty also saw a significant increase, rising 520 points, or 1.03 percent, to finish at 51,097.25. The Nifty Midcap 100 also closed 83.40 points, or 0.14 percent, higher at 58,418.55.

All eyes are now focused on the upcoming mid-September FOMC meeting, with expectations of a potential rate cut influenced by U.S. employment data. Domestically, investors will watch the rupee's movement against the dollar, crude oil prices, and the investment activity of FPIs and DIIs.

Mehul Kothari, DVP – Technical Research, shares insights into trading Canara Bank, Aether Industries, and SPARC for today's session:

Aether Industries: Buy Between 970 - 950; Stop Loss 925; Target 1030

Aether Industries recently witnessed a breakdown below the 1000 mark in October 2023. Since then, the stock has made multiple attempts to break out on the upside. Currently, a significant range breakout above 970 is observed, with a rising ADX line and an RSI that has surpassed the 70 level on the daily chart. These technical indicators suggest a bullish trend. Traders are advised to buy between 970 and 950, with a target of 1,030 and a stop loss of 925.

Canara Bank (CANBK): Buy Above 105; Stop Loss 99; Target 114

Recently, PSU bank stocks have been under pressure. However, the PSU Bank index recently rebounded from its 200-day Exponential Moving Average (DEMA) and formed a bullish hammer candlestick pattern, indicating a potential reversal. CANBK shows a similar price pattern, suggesting a possible bounce. Traders should consider buying CANBK if it moves above 105, with a target price of 114. The stop loss should be set at 99.

SPARC: Buy Above 235; Stop Loss 225; Target 255

SPARC has been heavily oversold on both medium- and long-term time frames. On the daily chart, the stock is approaching a critical range breakout, which could confirm a higher bottom formation and signal a reversal. This technical setup indicates potential for upward movement. Traders are advised to buy SPARC above 235, targeting 255, with a stop loss at 225.

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.