Trade Spotlight: How should you trade DMart, Can Fin Homes, Radico Khaitan, Cipla, Dr Reddys Labs, Caplin Point, Afcons Infra, and others on August 22?

Top Buy Ideas for August 22

Bulls continued to hold the fort despite pressure from bears, helping the Nifty 50 close 0.13 percent higher on August 21, while the market breadth was nearly balanced. Around 1,381 shares declined compared to 1,350 advancing shares on the NSE. Overall, the trend remains favourable for bulls, despite the likelihood of intermittent consolidation. Below are some short-term trading ideas to consider:

Jay Mehta, Technical Research at JM Financial Services

Afcons Infrastructure | CMP: Rs 427.8

Afcons Infrastructure had been trading in a descending triangle pattern since March 2025, hitting a low of around Rs 398 post-listing. It retested this level on April 7 and recently experienced a false breakdown below it on July 29, forming a hammer candlestick. The stock has now broken out above the triangle pattern, with an upside Tasuki candlestick pattern observed recently. Volume has increased positively in the past few sessions, with over 60% average delivery volume.

The price is trading above its 20- and 50-day EMAs, and the price action aligns with RSI, showing a higher high and higher low structure in the short-to-medium term. Momentum indicators support a bullish outlook. The ADX trend indicator indicates fading bearish momentum, with bullish strength increasing as DMI+ trades above DMI- and ADX trends upward. A break above Rs 447 could accelerate the rally.

Strategy: Buy

Target: Rs 465, Rs 484

Stop-Loss: Rs 405

Avenue Supermarts | CMP: Rs 4,691.9

DMart had been in a triangular consolidation pattern since April 2025, with below-average volume indicating an accumulation phase. On August 18, it broke out above the pattern with a breakaway gap, signaling renewed buying interest. The price is trading above all key EMAs, and the breakout is backed by positive volume buildup. Momentum indicators reflect a bullish bias, supporting an upward trend toward Rs 4,900 and Rs 5,166. A minor correction to the Rs 4,440–4,550 support zone could offer a buying opportunity. The ADX trend indicator suggests continued bullish momentum, with DMI+ trading above DMI-.

Strategy: Buy

Target: Rs 4,900, Rs 5,166

Stop-Loss: Rs 4,126

Can Fin Homes | CMP: Rs 782.1

After correcting from a swing high of Rs 826, Can Fin Homes formed a base near its 200EMA, consolidating in a tight range for about 14 days. It recently broke out above this range with a surge in positive volume and strong delivery volume in recent sessions. The price is now trading above all key EMAs, which should act as support during minor dips. Momentum indicators support a bullish bias, with RSI trading above 50 and the MACD histogram rising.

The ADX trend indicator shows fading prior bearish momentum, with bullish strength increasing as DMI+ trades above DMI-. Also, when comparing the relative move of peers in the housing finance space, Can Fin Homes is showing good relative strength.

Strategy: Buy

Target: Rs 820, Rs 850

Stop-Loss: Rs 750

Mandar Bhojane, Senior Technical & Derivative Analyst at Choice Broking

Radico Khaitan | CMP: Rs 2,894.8

Radico Khaitan is consolidating just above its breakout level, indicating strength and the potential for a fresh breakout. The move is supported by strong volume participation, reflecting rising bullish interest. A decisive close above Rs 2,900 would confirm the breakout and could pave the way for a fresh upside rally. On the downside, immediate support is placed at Rs 2,850, which also acts as a strong accumulation zone for traders looking to enter on dips.

The RSI stands at 62.34 and is trending upward, signaling improving momentum and increasing buying pressure. From a risk–reward perspective, traders may consider keeping a stop-loss at Rs 2,785 to manage downside risk.

Strategy: Buy

Target: Rs 3,100, Rs 3,200

Stop-Loss: Rs 2,785

Swiggy | CMP: Rs 435.7

Swiggy has given a decisive breakout from a Cup and Handle formation on the daily chart, supported by strong volumes. This indicates that bulls are regaining control and a trend shift is already underway. The momentum outlook remains positive, with the RSI at 67.62 and trending upward, signaling growing strength while still staying below the overbought zone.

The Rs 425 level is acting as a strong base and offers a buy-on-dips opportunity for traders. With price action holding above the breakout zone, the stock looks poised for further upside.

Strategy: Buy

Target: Rs 505, Rs 540

Stop-Loss: Rs 407.5

Cipla | CMP: Rs 1,592.8

Cipla has recently broken out of a Symmetrical Triangle pattern on the daily chart. The breakout was backed by a strong bullish candle along with rising volumes, indicating renewed buying interest and a potential shift in trend in favour of the bulls. This price action highlights strength and the possibility of further upside in the stock.

On the momentum front, the Relative Strength Index (RSI) is placed at 65.9 and trending upward, suggesting growing bullish momentum. The Rs 1,570 level now serves as a strong support zone and could act as a buy-on-dips opportunity for positional traders. Sustaining above the breakout level with continued volume participation would likely open the door for higher levels in the coming sessions.

Strategy: Buy

Target: Rs 1,700, Rs 1,790

Stop-Loss: Rs 1,525

Om Mehra, Technical Research Analyst at Samco Securities

Dr Reddy's Laboratories | CMP: Rs 1,276.6

Dr Reddy’s Laboratories advanced in the latest session, breaking past the falling trendline resistance and closing above both the 20-SMA (Rs 1,245) and 50-SMA (Rs 1,270). This breakout from the recent consolidation phase suggests the stock is attempting to reverse its corrective trend. The daily RSI has improved to 58, indicating strengthening momentum with further scope before entering overbought territory. The MACD has turned positive, supported by a rising histogram, confirming that the short-term bias has tilted in favour of the bulls.

The stock has formed a strong bullish candle on the daily chart backed by decent volumes, and is comfortably holding above the 38.2% Fibonacci retracement. On the downside, support is well-defined at Rs 1,255, aligned with the 50-SMA.

Strategy: Buy

Target: Rs 1,345

Stop-Loss: Rs 1,245

Caplin Point Laboratories | CMP: Rs 2,211.10

Caplin Point Labs advanced 4.25% in the latest session, forming a strong bullish engulfing candle on the daily chart and decisively breaking out from a prolonged consolidation phase. The breakout was supported by a notable rise in volumes and followed weeks of sideways price action, where the stock had been coiling within a broad range. This move now signals a shift in momentum toward sustained upside.

The daily RSI has improved to 62, confirming strengthening momentum while still leaving room before entering overbought territory. The MACD remains positive, while the hourly chart displays a higher high formation.

Strategy: Buy

Target: Rs 2,320

Stop-Loss: Rs 2,140

Cummins India | CMP: Rs 3,886.30

Cummins India has staged a breakout from a well-defined saucer pattern, overcoming the prolonged resistance zone that had repeatedly capped the stock’s up move in recent months. This breakout is supported by a sequence of higher highs and higher lows, underscoring the strength of the ongoing uptrend. The stock continues to trade comfortably above its key moving averages, which are firmly sloping upward, providing a solid base for continuation.

The RSI has climbed to 74, reflecting robust bullish momentum, though it is approaching overbought territory, which may invite brief consolidation phases. The MACD remains in positive territory with a widening histogram, confirming trend acceleration.

Strategy: Buy

Target: Rs 4,220

Stop-Loss: Rs 3,750