The market snapped a four-day winning streak with the Nifty 50 closing 0.1 percent lower on February 1 after the budget. The market breadth was slightly in favour of bulls, with about 1,287 shares advancing compared to 1,240 shares declining on the NSE. The benchmark indices are expected to consolidate with a positive bias. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
KRN Heat Exchanger and Refrigeration | CMP: Rs 863.1
KRN Heat Exchanger has firmly consolidated within the Rs 850-680 levels in the past two months, with rising volumes representing accumulation. This consolidation is well placed above the 38.2% Fibonacci Retracement support zone of Rs 702 (retracement of Rs 416-880), which reconfirms demand near the support zone. On the weekly line chart, the stock has decisively surpassed the earlier resistance zone on a closing basis, indicating a positive bias. The stock is sustaining above its 20- and 50-day SMA, which reconfirms a bullish trend. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 985-1,100 and a downside support zone of Rs 785-765.
Strategy: Buy
Target: Rs 985, Rs 1,100
Stop-Loss: Rs 785
InterGlobe Aviation | CMP: Rs 4,492.4
InterGlobe Aviation has witnessed buying momentum on every dip since October 2024, signaling increasing demand. With the current close, the stock has decisively surpassed the past couple of weeks' highs on a closing basis, indicating bullish sentiments. The stock has recaptured its 20, 50, 100, and 200-day SMA and rebounded sharply, reconfirming the bullish trend. The daily and weekly strength indicator RSI (Relative Strength Index) is in favourable terrain, showing rising strength. Investors should buy, hold, and accumulate this stock. Its expected upside is Rs 4,730-4,880, and its downside support zone is Rs 4,285-4,215.
Strategy: Buy
Target: Rs 4,730, Rs 4,880
Stop-Loss: Rs 4,285
Colgate Palmolive India | CMP: Rs 2,898.6
Colgate Palmolive has been strongly consolidating in a triangular formation for the last three months. However, the stock has confirmed a short-term trend reversal around Rs 2,860 with the current close. The daily "Bollinger band" buy signals reconfirm the increased momentum. The stock is well placed above its 20- and 50-day SMA, indicating bullish sentiments. The daily and weekly strength indicator RSI is in favourable terrain, showing rising strength. Investors should buy, hold, and accumulate this stock. Its expected upside is Rs 3,050-3,230, and its downside support zone is Rs 2,790-2,740.
Strategy: Buy
Target: Rs 3,050, Rs 3,230
Stop-Loss: Rs 2,790
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Ashok Leyland | CMP: Rs 206.35
Ashok Leyland has faced selling pressure after peaking above Rs 260 in September 2024. Historically, the stock has found support near the 89-EMA (Exponential Moving Average) on the weekly chart, which is currently around the Rs 200 level. On a longer degree chart structure, it is placed around the 20-EMA on a monthly chart, which has acted as a strong support zone. Given the current technical placement and historical support at these levels, we expect a potential short-covering rally from this point. Hence, we recommend buying Ashok Leyland around Rs 200-205.
Strategy: Buy
Target: Rs 265
Stop-Loss: Rs 189
State Bank of India | CMP: Rs 766
State Bank of India (SBI), after rallying nearly 80 percent from its early 2023 lows, has retraced to the 38.2% Fibonacci level of the prior up move, offering a favourable price location. The stock is currently trading near a strong short-term support band that has been respected multiple times since the beginning of last year. Technically, SBI has also found support at its 89-EMA on the weekly chart, further reinforcing the sturdiness of the underlying support. Given the oversold conditions in the broader market recently, we anticipate a strong pullback in the coming days, with heavyweight stocks like SBI expected to play a significant role in the recovery. Hence, we recommend buying SBI around Rs 755-735.
Strategy: Buy
Target: Rs 875
Stop-Loss: Rs 700
Dabur India | CMP: Rs 539.1
Dabur India has witnessed a steep correction of nearly 25 percent from its peak of Rs 668 in the past five months and has plummeted to oversold terrain. However, in the last couple of trading sessions, the counter has gained some of its lost ground, suggesting an initial sign of reversal. Technically, the counter has surged above the 20- and 50-day EMA after a long haul, which implies the initial positive development in the counter. From a risk-reward point of view, the counter is placed at a lucrative zone and is most likely to continue its upward move in the near future. Hence, we recommend buying Dabur around Rs 530-525.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 495
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Bajaj Auto | CMP: Rs 9,155.6
The major relief for the middle class, with an increase in the income tax exemption limit to Rs 12 lakh for individuals, positively impacted sectors like FMCG and auto. Bajaj Auto surged more than 3% in the Saturday session and has been closing above its prior day’s high since January 29, keeping the daily bias in favour of the bulls.
Currently, prices have given a close above the upper Bollinger Bands, which is a strong bullish sign. Also, the MACD (Moving Average Convergence Divergence) has given a bullish crossover, which is acting as a double confirmation. In summary, the current trend for Bajaj Auto is in favour of the bulls. A break above the Rs 9,180 level can lead to a trending move towards Rs 9,550, followed by Rs 9,950 levels, as long as Rs 8,810 holds on the downside.
Strategy: Buy
Target: Rs 9,550, Rs 9,950
Stop-Loss: Rs 8,810
Britannia Industries | CMP: Rs 5,201.35
The FMCG sector managed to outperform other sectors following the announcements of tax relief for individuals in the Union Budget. Britannia witnessed a good rise and closed near its previous swing high, which is near the Rs 5,220 level. A decisive break above it is a must for bullish momentum to continue. The stock has protected its prior day's low on a closing basis for the past three consecutive days, keeping the daily trend on the positive side. Also, the RSI (Relative Strength Index) is trading at 64 levels, giving prices the space to trend further. In summary, the trend for Britannia is on the positive side. A break above Rs 5,220 can lift prices higher towards Rs 5,450, followed by Rs 5,700. On the downside, Rs 5,000 is the crucial support.
Strategy: Buy
Target: Rs 5,450, Rs 5,700
Stop-Loss: Rs 5,000
CarTrade Tech | CMP: Rs 1,766.65
CarTrade Tech closed with a gain of 7 percent on Saturday. The stock has formed a rounding bottom pattern. Currently, the price has closed above the Rs 1,715 level, confirming the breakout of the said pattern. On the daily chart, the price is trading above the Ichimoku cloud, which indicates that the short-term bias is on the bullish side. In summary, the current trend for CarTrade Tech is bullish. A break above Rs 1,780 can lift the price higher towards Rs 1,850, followed by Rs 1,910 levels, as long as Rs 1,720 holds on the downside.
Strategy: Buy
Target: Rs 1,850, Rs 1,910
Stop-Loss: Rs 1,720
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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