The market gained half a percent on August 20, with breadth remaining positive. About 1,494 shares advanced against 881 declining shares on the NSE. According to experts, the Nifty 50 is likely to inch towards 24,800 as long as it holds the 24,650 level on a closing basis in the coming sessions. However, 24,500 is expected to be an immediate support zone. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Poly Medicure | CMP: Rs 2,194.4
Poly Medicure closed with a gain of 3.21 percent. On the daily chart, since August 14, not a single candle has closed below the previous day's low. Over the past three days, prices have consistently closed above the previous day's high, which is a positive sign.
The stock is moving within an upward-sloping channel, and recently, prices reversed from the channel support, now heading towards the upper end of the channel near Rs 2,400 levels. The MACD (Moving Average Convergence Divergence) has already given a bullish crossover, with a surge in volumes acting as an additional confirmation. In short, the trend for Poly Medicure is bullish. Use dips as a buying opportunity with a target of Rs 2,400 or higher as long as Rs 2,090 holds on the downside.
Strategy: Buy
Target: Rs 2,400
Stop-Loss: Rs 2,090
KEI Industries | CMP: Rs 4,709
KEI Industries was up by 8 percent in the previous session after a global brokerage firm gave a buy rating for cables and wire stocks. The stock produced a strong bullish candle on the daily chart. Prices earlier reversed from the trendline and bounced back on the upside. The Supertrend indicator has just turned green, which is a positive signal, but follow-up buying is required for confirmation. Additionally, the KST (Know Sure Thing) indicator has turned above the signal line, and if it trades near the zero line, further good momentum can be seen in this stock.
In short, the trend for KEI Industries is positive. After a sharp rise, one should avoid catching tops and instead use a buy-on-dips approach to ride the trend with a target of Rs 4,900-5,000 as long as Rs 4,490 holds on the downside.
Strategy: Buy
Targets: Rs 4,900, Rs 5,000
Stop-Loss: Rs 4,490
Vijaya Diagnostic Centre | CMP: Rs 889.3
Vijaya Diagnostic Centre has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a massive gain of 7 percent. On the daily chart, prices formed a bullish candle. The price has been moving in a rectangular range over the last few days, indicating accumulation in the stock. The price has closed above this trading range, resulting in a bullish breakout of the rectangular pattern. The ADX (Average Directional Index) of this stock is 32.75, indicating a trending market; a reading above 25 signifies strong directional strength.
In short, the trend for this stock is positive. Use dips towards Rs 870-880 as a buying opportunity for a move towards Rs 980-990 levels as long as Rs 840 holds on the downside.
Strategy: Buy
Target: Rs 980, Rs 990
Stop-Loss: Rs 840
Om Mehra, Technical Analyst at Samco Securities
Cummins India | CMP: Rs 3,829.55
After a substantial correction, Cummins India consolidated and formed a strong base around Rs 3,680 levels. The daily RSI (Relative Strength Index) stands at 55. The stock remains above its 20-day moving average, indicating a sustained uptrend. Additionally, there have been above-average delivery volumes in the last two days, suggesting heightened interest and possible accumulation at current levels. Based on the above technical structure, one can initiate a long position at the current market price (CMP) of Rs 3,830 for a target price of Rs 4,100. The stop-loss can be kept at Rs 3,680.
Strategy: Buy
Target: Rs 4,100
Stop-Loss: Rs 3,680
DLF | CMP: Rs 867
DLF, which was in a consolidation phase, is showing a gradual upward trend with a strong base near the Rs 840 level. A minor resistance around Rs 875 presents a key level to watch; breaking this could trigger further gains. The strong volume participation, along with the stock sustaining above its 20-day moving average, confirms the positive trend. Based on the above technical structure, one can initiate a long position at the current market price (CMP) of Rs 867 for a target price of Rs 950. The stop-loss can be kept at Rs 830.
Strategy: Buy
Target: Rs 950
Stop-Loss: Rs 830
EID Parry India | CMP: Rs 803
Both daily and weekly charts remain in a strong uptrend. EID Parry India has broken through the Rs 790 resistance level with substantial volume and is now trading above its 20- and 50-day moving averages. The RSI is holding steadily above 55, supporting the ongoing bullish momentum. Based on the technical structure, one can initiate a long position at the current market price (CMP) of Rs 803 for a target price of Rs 880. The stop-loss can be kept at Rs 765.
Strategy: Buy
Target: Rs 880
Stop-Loss: Rs 765
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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