Equity benchmarks fell half a percent on December 10, but the market breadth turned positive. About 1,832 shares advanced compared to 1,019 shares that were supported by bears on the NSE. The market is likely to be rangebound after the correction in the past two sessions. Below are some short-term trading ideas to consider:
Amol Athawale, VP Technical Research at Kotak Securities
Colgate Palmolive | CMP: Rs 2,158.9
After declining from higher levels, Colgate Palmolive rebounded from its support zone and witnessed a gradual recovery from the lower levels. Additionally, on the daily charts, the stock has given a breakout from its sloping channel formation.
The up-move in the stock suggests a new leg of bullish trend from the current levels. For the next few trading sessions, Rs 2,090 could be the trend-decider level for the bulls; if it sustains above the same, we can expect a further uptrend towards Rs 2,320.
Strategy: Buy
Target: Rs 2,320
Stop-Loss: Rs 2,090
Canara Bank | CMP: Rs 146.19
On the weekly scale, after the remarkable up-move, Canara Bank has been taking a breather for the last few sessions. The consolidation structure suggests a bullish continuation chart formation. Moreover, the stock is comfortably trading above its short-term moving averages.
Therefore, the stock is likely to resume its uptrend from the current levels in the coming horizon. As long as the stock is trading above Rs 140, the bullish texture is likely to continue. Above this, the stock could move up to Rs 156.
Strategy: Buy
Target: Rs 156
Stop-Loss: Rs 140
ABB India | CMP: Rs 5,117
After its declining trend, ABB India is in the accumulation zone where it is trading in a range-bound mode on the weekly scale. However, recent bullish activity in the stock indicates good strength. The stock is expected to break out of the range and witness bullish momentum from current levels, with a favourable risk–reward perspective.
For positional traders, Rs 4,930 would be the decisive level. Trading above this level, the uptrend formation will continue till Rs 5,450. However, if it closes below Rs 4,930, traders may prefer to exit long trading positions.
Strategy: Buy
Target: Rs 5,450
Stop-Loss: Rs 4,930
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
AU Small Finance Bank | CMP: Rs 972
AU Small Finance Bank continues to move firmly within an uptrend, forming a consistent pattern of higher highs and higher lows in the form of Wave 3. Despite the PSU Bank index witnessing some profit-booking from its recent highs, the stock managed to surge over 2 percent in the previous session and made a fresh record high near Rs 973.70 levels, showcasing clear outperformance.
Also, since November 24, not a single candle has closed below the prior day’s low, suggesting the robustness of the ongoing trend. For now, one should avoid attempting to catch a top and instead look to accumulate on dips, with an upside aim of Rs 995 initially, followed by Rs 1,020, as long as the range support at Rs 938 stays intact on the downside.
Strategy: Buy
Target: Rs 995, Rs 1,020
Stop-Loss: Rs 938
Emcure Pharmaceuticals | CMP: Rs 1,415.7
Emcure Pharmaceuticals displayed notable strength in the previous session by closing more than 2 percent higher and surpassing the prior day’s high, outperforming broader indices such as the Nifty 50 and Bank Nifty. On the daily chart, the stock has been moving in a triangle pattern with Bollinger Bands contracting, suggesting a reduction in volatility.
Along with this, the ADX is hovering at 18, well below the 25 level, indicating a lack of strong directional momentum and reinforcing the ongoing sideways phase. Prices are now positioned at a crucial point. A break above Rs 1,465 can confirm a breakout of the said pattern, which can trigger a fresh rise with upside targets of Rs 1,520 followed by Rs 1,580, with key support at Rs 1,400.
Strategy: Buy
Target: Rs 1,520, Rs 1,580
Stop-Loss: Rs 1,400
Aditya Birla Capital | CMP: Rs 364
Aditya Birla Capital is trading within a well-defined upward-sloping channel, reinforcing its bullish structure. Recently, prices took support near the mid Bollinger Bands and have rebounded from it, highlighting the continuation of the prevailing trend. A breakout above the upper Bollinger Bands can open the door for a fresh leg of rally on the upside.
Additionally, the KST (Know Sure Thing) indicator has already moved above its signal line (red) and is trading above the zero line, confirming improving momentum. Together, these signals suggest that the positive trend is likely to extend further in the near term once we get a break above Rs 367, which can push prices higher towards Rs 381 followed by Rs 400, as long as Rs 353 remains protected on the downside.
Strategy: Buy
Target: Rs 381, Rs 400
Stop-Loss: Rs 353
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
L&T Finance | CMP: Rs 307.3
L&T Finance has been in an intermediate uptrend over the last six months. The stock price has moved up as per the bullish chart pattern of higher tops and bottoms over time on the weekly timeframe chart.
After showing a consolidation pattern/minor weakness recently, the stock price is now ready to break above the consolidation movement at Rs 310. Volume has contracted during dips in the stock price, and the daily/weekly RSI shows positive indications.
Strategy: Buy
Target: Rs 336
Stop-Loss: Rs 292
IDFC First Bank | CMP: Rs 80.91
IDFC First Bank has been moving within a broader high–low range over the last couple of months. The stock price is currently attempting a decisive breakout of the consolidation band around Rs 82. We also observe a bullish flag-type pattern formation on the weekly chart, and the stock price is now placed at the edge of an upside breakout.
The larger positive sequence of higher tops and bottoms is intact on the weekly timeframe chart. Volume has started to expand during the upside breakout, and the weekly 14-period RSI shows positive indications.
Strategy: Buy
Target: Rs 89
Stop-Loss: Rs 76
Patanjali Foods | CMP: Rs 539
Patanjali Foods has been in a distribution phase over the last few months. The larger range movement at the highs has eventually resulted in a breakdown of the immediate support of Rs 570 last month.
Presently, the stock price is placed at the edge of breaking below another important support of Rs 535. Volume has started to rise during weakness in the stock price, and the daily/weekly RSI shows negative indications.
Strategy: Sell
Target: Rs 496
Stop-Loss: Rs 562
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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