Equity benchmarks corrected more than 0.3 percent on October 14, extending their downward journey for another session, with market breadth dominated by bears. A total of 2,117 shares were under pressure, compared to 713 advancing shares on the NSE. The market may witness range-bound trading until it trades below the previous week's high. Below are some short-term trading ideas to consider:
Amol Athawale, VP Technical Research at Kotak Securities
Cholamandalam Investment and Finance Company | CMP: Rs 1,645.7
Cholamandalam Investment has shown a robust rally from lower levels in recent sessions. Additionally, it is continuously trading in an ascending triangle chart formation. This overall setup indicates a likely breakout for a new leg of an up move from current levels.
For positional traders, Rs 1,590 would be the decisive level. Trading above this level will likely continue the uptrend towards Rs 1,770. However, if it closes below Rs 1,590, traders may prefer to exit long positions.
Strategy: Buy
Target: Rs 1,770
Stop-Loss: Rs 1,590
DLF | CMP: Rs 740.9
Following a declining trend, DLF reversed from its important support zone. The stock has formed a rounding bottom chart pattern on the daily scale and is in a steady up move. The RSI also indicates a further uptrend from current levels, which could boost bullish momentum in the near future. As long as the stock trades above Rs 715, the bullish structure is likely to continue, with potential movement up to Rs 790.
Strategy: Buy
Target: Rs 790
Stop-Loss: Rs 715
SBI Life Insurance Company | CMP: Rs 1,816.2
After a decline from higher levels, SBI Life Insurance rebounded from its support zone and has witnessed a steady recovery. On the daily chart, the stock is trading near the breakout line of its sloping channel formation. The recent up move suggests a potential breakout and the beginning of a new bullish trend from current levels.
For the next few sessions, Rs 1,750 could act as the trend-decider level for the bulls. If the stock sustains above this, we may expect an uptrend towards Rs 1,940.
Strategy: Buy
Target: Rs 1,940
Stop-Loss: Rs 1,750
Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities
IDFC First Bank | CMP: Rs 72.8
IDFC First Bank has formed a higher top and higher bottom formation on the weekly chart. The stock is placed above all key moving averages, indicating an uptrend across all time frames. The daily RSI is sustaining above 50, further confirming the strength of the uptrend. The MACD is placed above its signal line and the equilibrium line, which also supports a bullish view.
Strategy: Buy
Target: Rs 77
Stop-Loss: Rs 70
TD Power Systems | CMP: Rs 600.75
After a healthy running correction, TD Power Systems has formed a “Doji” candlestick pattern on the daily chart. The primary trend remains bullish, with the stock placed above all key moving averages. The indicators and oscillator setup remain bullish on the short-term charts, supporting potential upward movement.
Strategy: Buy
Target: Rs 635
Stop-Loss: Rs 570
Torrent Power | CMP: Rs 1,294.8
Torrent Power has surpassed the crucial resistance of the 50-day exponential moving average (DEMA) and is now sustaining above it. Oscillators have exited the oversold zone on short-term charts. The indicators and oscillator setup remain bullish, reinforcing a positive outlook in the short term.
Strategy: Buy
Target: Rs 1,360
Stop-Loss: Rs 1,250
Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors
IREDA | CMP: Rs 154.52
Indian Renewable Energy Development Agency (IREDA) has shown a strong reversal in the previous session. The upside move came with very strong volumes, surpassing the 20-day average volume, which is visible on the chart. The stock has formed a classic double bottom pattern, suggesting a potential price move towards the Rs 165 level on the upside.
On the downside, support for the stock can be found at the previous day’s low, around Rs 147. Additionally, the stock has managed to cross above its 20-day moving average, which is a positive technical signal.
Overall, IREDA shows a bullish undertone supported by strong volume. The technical indicators suggest a potential upside movement, making it an interesting opportunity for traders willing to manage the associated risks.
Strategy: Buy
Target: Rs 165
Stop-Loss: Rs 147
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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