The market failed to continue its upward journey for another session, losing half a percent on October 30, despite breadth favouring bulls. About 1,924 shares gained against 593 falling shares on the NSE. The consolidation and rangebound movement are expected to continue, given that volatility has risen to over an 11-week high. Below are some trading ideas for the near term:
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas
Central Depository Services | CMP: Rs 1,519
CDSL has formed an Inverted Head and Shoulders Pattern on the hourly charts and has closed above the neckline, indicating a breakout. The hourly momentum indicator shows a positive crossover, which is a buy signal. We expect the stock to trade with a positive bias and target levels of Rs 1,620 to Rs 1,635 from a short-term perspective. One can go long with a stop-loss of Rs 1,480.
Strategy: Buy
Target: Rs 1,620, Rs 1,635
Stop-Loss: Rs 1,480
Shree Renuka Sugars | CMP: Rs 42.4
Shree Renuka Sugars has completed a five-wave decline on the daily charts and is now poised for a retracement. We expect the stock to test Rs 46 to Rs 47.80, which are the 38.2 percent and 50 percent Fibonacci retracement levels of the recent decline. The daily momentum indicator has a positive crossover, signaling a buy. One should keep a stop-loss of Rs 40.50 for long positions.
Strategy: Buy
Target; Rs 46, Rs 47.80
Stop-Loss: Rs 40.50
Vidnyan S Sawant, Head of Research at GEPL Capital
Balrampur Chini Mills | CMP: Rs 659.55
Balrampur Chini Mills has demonstrated strong resilience across timeframes, maintaining a robust position within a rising trend. On the weekly scale, the stock is positioned above key averages, including the 12, 26, 50, 100, and 200 EMAs (Exponential Moving Averages), reinforcing its positive trend. The MACD (Moving Average Convergence Divergence) indicator is maintaining a rising trajectory, further affirming bullish momentum and the stock's upward movement. Looking ahead, the stock shows potential for an upside target of Rs 793, with a recommended stop-loss at Rs 608 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 793
Stop-Loss: Rs 608
Caplin Point Laboratories | CMP: Rs 1,979.5
Caplin Point Laboratories continues to form higher tops and higher bottoms on the higher timeframes, indicating a sustained uptrend. On the weekly scale, the stock recently experienced a bullish mean reversion from its key 12-week EMA. The MACD remains in buy mode on the weekly scale, reinforcing the stock’s strong upward trajectory in the near term. Looking ahead, the stock has an upside target of Rs 2,358, with a recommended stop-loss at Rs 1,807 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 2,358
Stop-Loss: Rs 1,807
National Aluminium Company | CMP: Rs 227
NALCO is positioned above key moving averages (12, 26, 50, 100, and 200 EMAs), indicating a positive trend. The weekly MACD remains in buy mode, supporting this bullish outlook. Additionally, the NALCO/Nifty ratio chart broke out from a long-term trend line in January 2024 and is currently at a 52-week high, suggesting strong potential for continued outperformance against the broader market. Looking ahead, the stock has an upside target of Rs 283, with a stop-loss set at Rs 208 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 283
Stop-Loss: Rs 208
Federal Bank | CMP: Rs 203
Federal Bank has been a standout performer this week, demonstrating strong resilience amid broader market volatility. The stock's volume has surged above its key 20-week average volume, indicating that bullish price action is supported by robust volume activity. Additionally, the stock is well-positioned above its key averages, reinforcing the positive trend. Looking ahead, the stock shows potential for an upside target of Rs 237, with a recommended stop-loss at Rs 186 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 237
Stop-Loss: Rs 186
Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities
Paradeep Phosphates | CMP: Rs 102
Paradeep Phosphates has been consolidating in the range of Rs 80-95 over the last three to four months, with prices fluctuating within a broader range and sustaining well above its 200-day exponential moving average. This week, a fresh breakout has been observed above the consolidation phase, as the stock has picked up a fresh bullish momentum above its key resistance level of Rs 95 after a prolonged consolidation phase. Positive divergences in secondary oscillators, along with a rise in average volume and positive price action, suggest further upward movement in the stock. Therefore, one can accumulate the stock on dips in the range of Rs 97-95 for the expected upside to Rs 113, with a stop-loss below Rs 85.
Strategy: Buy
Target: Rs 113
Stop-Loss: Rs 85
Ramco Cements | CMP: Rs 882.65
Ramco Cements has been consolidating in the range of Rs 820-880 and has managed to hold above its 200-day EMA on the weekly timeframe. After a prolonged consolidation, the stock has given a fresh bullish momentum above the Ascending Triangle pattern visible on the weekly charts. Positive divergences in secondary oscillators also suggest that the stock is on the verge of a fresh upside after spending nearly four months in a defined range. Therefore, one can accumulate the stock in the range of Rs 870-880 for the expected upside to Rs 950-960, with a stop-loss below Rs 820.
Strategy: Buy
Target: Rs 950-960
Stop-Loss: Rs 820
Borosil | CMP: Rs 461
Borosil has maintained its bullish momentum and has seen the formation of a higher bottom pattern. Last week, the stock marked its 52-week high of Rs 462.15 and witnessed a fresh breakout above the Ascending Triangle pattern on the daily timeframe. A sudden spike in average volumes, along with positive price action, suggests further upside in the stock. Therefore, one can accumulate the stock in the range of Rs 450-460 for the expected upside to Rs 510-520, with a stop-loss below Rs 410.
Strategy: Buy
Target: Rs 510, Rs 520
Stop-Loss: Rs 410
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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