The market remained under the control of bears for three consecutive days on May 28, negating its higher highs formation for the first time in the last 12 sessions. However, it still held above all key moving averages and traded near the upper end of the Bollinger band. The benchmark indices - the BSE Sensex and Nifty 50 - ended lower, forming a bearish candlestick pattern on the daily timeframe. The market breadth remained in favour of bears, with about 1,629 equity shares declining against 633 shares advancing on the NSE. Given the volatility, which hit a fresh two-year high at around 24 ahead of the mega event - Lok Sabha election results, the Nifty 50 index is likely to consolidate further with immediate support at 22,800 and then 22,600, whereas 23,000 is expected to be the hurdle on the higher side. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder / CEO at Waves Strategy Advisors
Sun Pharmaceutical Industries | CMP: Rs 1,464.9
Sun Pharma ended the previous trading session negatively with a minor loss of -0.08 percent. Since May 22, not a single candle has closed above the previous candle high, indicating a short-term bearish trend. Despite this, prices closed below the lower end of the Bollinger bands, further indicating that the downtrend is likely to continue in the coming sessions.
In a nutshell, the trend for Sun Pharma is negative. A break below Rs 1,455 can drag the prices lower towards Rs 1,415 as long as Rs 1,495 holds on the upside.
Strategy: Sell
Target: Rs 1,415
Stop-Loss: Rs 1,495
Godrej Properties | CMP: Rs 2,775.25
On the daily outlook, Godrej Properties has been moving higher, forming higher highs and higher lows, indicating a short-term bullish trend. Additionally, the 30-day period Exponential Moving Average (EMA) is acting as a strong support line, and one should be in the direction of the ongoing trend as long as this line is protected.
In short, Godrej Properties' trend is positive. A break above Rs 2,800 can lift the price higher towards Rs 2,980, as long as Rs 2,680 holds on the downside.
Strategy: Buy
Target: Rs 2,980
Stop-Loss: Rs 2,680
V2 Retail | CMP: Rs 535.2
V2 Retail has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a gain of 3.14 percent.
On the daily chart, prices formed a bullish candle in the previous session. Any daily close above Rs 541 will confirm the breakout of the rounding bottom pattern. The price is trading above the Ichimoku cloud, indicating that the short-term bias is bullish. Support is placed at Rs 505.
In short, the trend for this stock is positive. Use dips towards Rs 525-530 as a buying opportunity for a move towards Rs 585-590 levels, as long as Rs 505 holds on the downside.
Strategy: Buy
Target: Rs 590
Stop-Loss: Rs 505
Om Mehra, Technical Analyst at SAMCO Securities
Syngene International | CMP: Rs 688.55
Syngene stock has undergone an extended consolidation phase, establishing a robust support base around the Rs 665 level. Currently, the price is sustaining above the Rs 685 level, a resistance level, indicating strong buying interest among short-term traders. Additionally, the Relative Strength Index (RSI) is recovering from lower levels, suggesting a potential reversal in the stock.
Hence, based on the technical structure, one can initiate a long position at CMP Rs 688 for a target price of Rs 740. The stop-loss can be kept at Rs 660.
Strategy: Buy
Target: Rs 740
Stop-Loss: Rs 660
JSW Infrastructure | CMP: Rs 287.7
JSW Infrastructure stock is forming higher highs and higher lows, indicating a sustained uptrend. The stock is placed well above its short-term (20-day) moving averages. The RSI is comfortably holding at 73 levels and is gradually inching higher, indicating strength in the stock. Moreover, there is a noticeable increase in volume accompanying the price rise, further confirming the bullish outlook.
The former resistance has transitioned into a support level. Hence, based on the technical structure, one can initiate a long position at CMP Rs 287.7 for a target price of Rs 315. The stop-loss can be kept at Rs 272.
Strategy: Buy
Target: Rs 315
Stop-Loss: Rs 272
Ipca Laboratories | CMP: Rs 1,319.75
Following a significant correction, Ipca Labs stock has established a sturdy base, with a Bullish Engulfing pattern near its support zone. It remains above the 20-day Simple Moving Average (SMA). Additionally, the stock is holding above the middle Bollinger bands, and a potential breakout above Rs 1,325 could amplify buying interest.
Hence, based on the technical structure, one can initiate a long position at CMP Rs 1,320 for a target price of Rs 1,400. The stop-loss can be kept at Rs 1,280.
Strategy: Buy
Target: Rs 1,400
Stop-Loss:Rs 1,280
Riyank Arora Technical Analyst at Mehta equities
Coromandel International | CMP: Rs 1,291.1
Coromandel International has given a strong breakout above its all-time high resistance mark of Rs 1,271.55 and has successfully managed to close above the same. With the RSI (14) near the 70 mark, indicating good momentum and strength, the stock appears promising.
Volumes in Tuesday's session were nearly 2.5 times its average (30-day) session, suggesting strong buying interest.
The stock looks like a strong buy with a strict stop-loss of Rs 1,269, for a target of Rs 1,350 and above.
Strategy: Buy
Target: Rs 1,350
Stop-Loss: Rs 1,269
Aarti Industries | CMP: Rs 629.4
Aarti Industries has touched a major support mark of Rs 605 on its daily time frame charts. With the RSI (14) near 36.60 and showing a minor uptick on its daily charts, the stock is indicating a potential momentum pick-up and strength.
An immediate resistance is placed near the Rs 665-670 mark, which should serve as potential targets.
A strict stop-loss should be kept at Rs 612.50 to manage risk well on Aarti Industries.
Strategy: Buy
Target: Rs 670
Stop-Loss: Rs 612.5
DLF | CMP: Rs 820
DLF is trading between its important support zone of Rs 805-820 on its daily time frame charts. With the risk-reward ratio being favourable on the buying side at current levels and the downside being limited, the stock is a potential buy with a strict stop-loss of Rs 795 for a potential target of Rs 860 and above.
With the RSI (14) near 36, the momentum looks dull but ready for a pick-up.
Strategy: Buy
Target: Rs 860
Stop-Loss: Rs 795
Tata Power Company | CMP: Rs 436.9
Tata Power stock has reached its anchor VWAP (volume-weighted average price) support level of Rs 435 on its daily time frame charts. It has immediate support around the Rs 430 mark and immediate resistance at Rs 450. The stock appears to be a strong buy at current levels, with a strict stop-loss set at Rs 425 and potential targets of Rs 450 and Rs 455. With the RSI (14) near 52, overall momentum is expected to increase in the upcoming trading sessions.
Strategy: Buy
Target: Rs 450, 455
Stop-Loss: Rs 425
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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