Trade Spotlight: How should you trade DMart, Bharat Dynamics, City Union Bank, Gujarat Alkalies, and others on Monday?

Top Buy Ideas For Short Term

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The benchmark indices snapped a two-day losing streak and closed 0.4 percent higher on November 1, the first day of the new series. The market breadth remained strong, with 2,138 shares advancing against 336 falling shares on the NSE. The market is expected to be rangebound as long as it defends last week’s low in the upcoming sessions. Below are some trading ideas for the near term:

Nandish Shah, Senior Technical and Derivative Analyst at HDFC Securities

Central Bank of India | CMP: Rs 58.12

The primary trend of the stock has turned positive as it closed above its 200-day EMA (Exponential Moving Average). Momentum indicators and oscillators like the MFI (Money Flow Index) and RSI (Relative Strength Index) are sloping upwards and are positioned above 50 on the daily chart, suggesting strength in the current bullish trend. The stock price is on the verge of breaking out from the downward-sloping trendline resistance. Additionally, the Nifty PSU Bank Index has broken out from the downward-sloping trendline on the daily chart.

Strategy: Buy

Target: Rs 63, Rs 67

Stop-Loss: Rs 54

Gujarat Alkalies and Chemicals | CMP: Rs 849

Gujarat Alkalies has broken out on the weekly chart from the downward-sloping trendline with higher volumes. Accumulation was seen in the stock during the last month, with volumes on up days higher compared to down days. During the recent correction in mid-cap stocks, the stock price exhibited relative strength. Momentum indicators and oscillators are showing strength in the current uptrend of the stock.

Strategy: Buy

Target: Rs 920, Rs 950

Stop-Loss: Rs 795

DCB Bank | CMP: Rs 123

DCB Bank has also broken out from the downward-sloping trendline, connecting the highs of June 21 and September 25, 2024, on the daily chart. The short-term outlook for the stock remains positive, as it is positioned above its important short-term moving averages. Momentum indicators and oscillators like the MFI and RSI are sloping upwards and are above 50 on the daily chart, indicating strength in the current bullish trend.

Strategy: Buy

Target: Rs 131, Rs 137

Stop-Loss: Rs 116

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

CG Power and Industrial Solutions | CMP: Rs 720.6

Recently, CG Power entered a corrective phase, leading to a 20 percent decline from its recent high. This correction has brought the stock down to a crucial support level within a previous demand zone, where buyers have historically shown interest. On the hourly chart, a bullish divergence has appeared, indicating a potential shift in momentum as selling pressure weakens.

Furthermore, the stock has broken above a prevailing bearish trendline, strengthening the case for a possible reversal. This combination of bullish divergence and trendline violation makes the stock an attractive buy at the current levels. Based on these technical signals, we recommend going long in the Rs 715-725 zone, with an upside target of Rs 790. To manage risk, a stop-loss should be placed at Rs 685 on a daily closing basis, ensuring protection against downside movement if the support zone fails to hold.

Strategy: Buy

Target: Rs 790

Stop-Loss: Rs 685

Avenue Supermarts | CMP: Rs 4,001.6

Over the past five weeks, DMart has faced substantial selling pressure, declining from a high of Rs 5,484 to its current level around the Rs 4,000 mark. Recently, it found stability near this level after reaching an intraday low of Rs 3,876 on October 31, 2024. This Rs 4,000 zone aligns with a long-term, 1.5-year bullish trendline support visible on the weekly chart, adding technical significance to this level as a potential area for price stabilization. On the daily chart, the RSI has begun forming higher lows, signaling a possible reduction in selling pressure and hinting at exhaustion among sellers around this support zone.

Additionally, on the hourly chart, a hidden bullish divergence has emerged; while the price action made lower lows, the RSI did not follow, instead stabilizing near its recent lows. This divergence suggests that downside momentum may be weakening, creating a favourable buying opportunity around the Rs 4,000 mark. Given these supportive technical indicators, we recommend entering a long position within the Rs 3,990-4,010 range, targeting an upside move to Rs 4,400. To manage risk, a stop-loss should be placed at Rs 3,800 on a daily closing basis, offering a sound balance between risk and reward.
Strategy: Buy

Target: Rs 4,400

Stop-Loss: Rs 3,800

Bharat Dynamics | CMP: Rs 1,115.85

After reaching a peak of approximately Rs 1,794 in July 2024, Bharat Dynamics has been in a corrective phase, consistently forming lower highs and lower lows. This downtrend led to a significant correction, with the stock declining by around 44 percent from its high. Currently, the stock is showing signs of stabilizing as it approaches a previous demand zone—historically an area that attracted buyers. Adding to this optimistic view, a bullish divergence has emerged on the daily chart, suggesting that bearish momentum may be waning and a reversal could be on the horizon. Considering these technical indicators, we recommend initiating a long position in the range of Rs 1,085-1,120. The target for this trade is set at Rs 1,220, indicating potential upside. However, to manage risk, a stop-loss should be placed at Rs 1,020 on a daily closing basis to protect against further downside if the support fails to hold.

Strategy: Buy

Target: Rs 1,220

Stop-Loss: Rs 1,020

Rajesh Bhosale, Technical Analyst at Angel One

City Union Bank | CMP: Rs 177.82

Over the past four years, City Union Bank prices have largely consolidated within a defined range. Following a prolonged period of trading within a symmetrical triangle, the upper boundary of this range has been decisively broken, supported by a strong volume surge that confirms a bullish breakout. Additionally, the breakout aligns with an increase in the RSI, suggesting momentum is building. The MACD (Moving Average Convergence Divergence) has also crossed above its signal line, further reinforcing the potential for upward movement. Hence, we recommend buying City Union Bank around Rs 175-172.

Strategy: Buy

Target: Rs 187

Stop-Loss: Rs 169

Ramco Cements | CMP: Rs 892

Last week, the entire cement sector gained significant attention, and Ramco Cements also performed well despite a challenging market environment. With a strong upward move, prices have broken above the previous four-month high range. Additionally, the RSI has crossed the 60 mark, indicating momentum buildup by the bulls, and the volume trend supports this movement. Hence, we recommend buying Ramco Cements around Rs 886-880.

Strategy: Buy

Target: Rs 940

Stop-Loss: Rs 864

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.