The market remained in the control of bears, who dragged the Nifty 50 below the support trendline. The index fell by more than 1%, with market breadth remaining in negative territory. A total of 1,981 shares saw a correction, compared to 663 shares that advanced on the NSE. The index is expected to extend its southward move in the upcoming sessions, given the negative sentiment. Below are some trading ideas for the near term:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Cummins India | CMP: Rs 2,832.7
Cummins India recently formed a double bottom pattern with a bullish divergence at the S1 monthly pivot support, aligning with a previous breakout zone. This indicates strong demand and a potential trend reversal. The bullish divergence suggests weakening selling pressure, favouring upward movement. Traders may consider entering long positions in the Rs 2,800-2,840 zone, with an upside target of Rs 3,220.
Strategy: Buy
Target: Rs 3,220
Stop-Loss: Rs 2,620
NTPC | CMP: Rs 320.1
NTPC recently formed a double bottom pattern with a bullish divergence at the S1 monthly pivot support, aligning with a previous breakout zone. This indicates strong demand and a potential trend reversal. The bullish divergence suggests weakening selling pressure, favouring upward movement. Traders may consider entering long positions in the Rs 316-320 zone, with an upside target of Rs 360.
Strategy: Buy
Target: Rs 360
Stop-Loss: Rs 300
Bajaj Finance | CMP: Rs 8,355
Over the past three months, Bajaj Finance has surged 34%, rallying from Rs 6,451 to Rs 8,662. However, at current levels, the stock is stalling near the R1 monthly resistance pivot, as seen in the chart. Additionally, a bearish divergence has emerged, signaling potential downside pressure in the coming sessions. Traders may consider entering short positions in the Rs 8,350-8,400 zone, with a target of Rs 7,600.
Strategy: Sell
Target: Rs 7,600
Stop-Loss: Rs 8,800
Anshul Jain, Head of Research at Lakshmishree Investments
Kotak Mahindra Bank | CMP: Rs 1,966.1
Kotak Mahindra Bank is forming a bullish Volatility Contraction Pattern (VCP) on the weekly chart and is on the verge of a breakout above the key Rs 2,000 level. A volume-backed move above this resistance could push the stock into a strong bullish trajectory, with a potential upside toward Rs 2,400, the pattern’s projected target.
Additionally, both the 10- and 20-period moving averages on the weekly and daily charts are supporting the momentum, indicating sustained buying interest. A pre-emptive buy near the 20-day moving average offers an excellent risk-reward setup before the breakout confirmation. Traders should watch for increasing volumes and price action above Rs 2,000 to validate the move. Stay alert for the breakout and ride the trend!
Strategy: Buy
Target: Rs 2,100
Stop-Loss: Rs 1,900
Chambal Fertilisers and Chemicals | CMP: Rs 537.85
Chambal Fertilisers has successfully broken out of a 173-day-long Volatility Contraction Pattern (VCP) around Rs 540, confirming a bullish structure. The last two sessions witnessed a pullback, but today’s selloff occurred on low volumes, indicating weak long liquidation rather than fresh selling pressure. A sustained move above the Rs 540–Rs 550 zone will clear all remaining resistance, paving the way for a sharp rally toward Rs 625 in the near term.
The volume profile aligns perfectly with the breakout structure, featuring multiple bear traps and the recent selloff eliminating weak hands. This setup strengthens the bullish case, making any dips a buying opportunity. Traders should watch for volume expansion above Rs 550 for breakout confirmation. Stay positioned for an impulsive move!
Strategy: Buy
Target: Rs 625
Stop-Loss: Rs 520
Avanti Feeds | CMP: Rs 735
Avanti Feeds is nearing a 133-day-long Volatility Contraction Pattern (VCP) breakout around Rs 740, signaling a potential bullish move. The volume structure is ideal, with a notable dry-up on the right side of the pattern, indicating a lack of weak hands. A high-volume breakout above Rs 740 could propel the stock into a strong uptrend, with an immediate upside target of Rs 850.
The base structure further confirms institutional accumulation, as seen in multiple up candles with volume surging over 3x the 50-day average. This indicates smart money positioning ahead of a breakout. Traders should watch for a decisive move above Rs 740 with rising volumes for confirmation. Stay positioned for momentum and a potential strong rally ahead!
Strategy: Buy
Target: Rs 850
Stop-Loss: Rs 680
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Berger Paints Futures | CMP: Rs 504.85
Berger Paints Futures has provided a breakout from multiple swing resistances and has managed to close above its crucial resistance level as well. The stock has witnessed Call unwinding from the Rs 490 strike to the Rs 500 strike and aggressive put additions at the Rs 480 and Rs 490 strikes. There is a minor hurdle at Rs 510, where the next highest Call open interest is concentrated. Hence, above Rs 510, there will be further upward momentum. The open interest in futures had fallen to a 2-year low, but now it has witnessed an increase in open interest along with the price upmove, which clearly indicates long buildup.
Strategy: Buy
Target: Rs 515, Rs 525
Stop-Loss: Rs 494
Sun Pharmaceutical Industries Futures | CMP: Rs 1,641.5
Sun Pharmaceutical has been forming lower tops and lower bottoms, which is clearly indicating that the trend is negative. The most interesting insight is from its futures open interest, which has now started to increase from its lifetime lows. This increase in open interest, while the price is falling, signals that positional shorts are being built, suggesting a medium-term reversal. There has been aggressive Call writing at higher levels; however, the Rs 1,600 level has witnessed a strong Put base, both in the current and next series, which may act as support on an immediate basis. But below Rs 1,600, the stock will continue its downtrend.
Strategy: Sell
Target: Rs 1,590, Rs 1,560
Stop-Loss: Rs 1,690
HCL Technologies Futures | CMP: Rs 1,643.9
HCL Technologies has been forming lower tops and lower bottoms with an increase in open interest, clearly indicating that shorts are being formed in the stock, signaling a downtrend in the short to medium term. There has been aggressive Call writing witnessed in both this series and the March series. However, Rs 1,600 is an immediate support, where the stock has some Put base, making it the near-term support, whereas Rs 1,675 is the resistance. The IT sector overall has witnessed a sell-off and short buildup, so the outlook remains weak.
Strategy: Sell
Target: Rs 1,600, Rs 1,580
Stop-Loss: Rs 1,675
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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