The market remained under pressure for the fifth consecutive session, falling 1.5 percent on December 20, with breadth favouring the bears. About 2,121 shares declined compared to 390 shares that advanced on the NSE. The sentiment remains bearish, but considering the severe fall last week, consolidation and range-bound trade are possible. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Dr Reddy's Laboratories | CMP: Rs 1,343.65
Dr Reddy's Labs broke out of the 'Falling Channel' pattern at the Rs 1,288 level on the weekly chart, supported by a strong bullish candle, reaffirming its medium-term uptrend. The stock has formed a higher high and higher low pattern on the weekly chart, maintaining its position above the medium-term uptrend, indicating a positive bias. The weekly RSI strength indicator crossed above its reference line, generating a buy signal. RSI (Relative Strength Index) broke above the downward-sloping trendline, confirming strength in the price action. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 1,405, Rs 1,430
Stop-Loss: Rs 1,275
Action Construction Equipment | CMP: Rs 1,491.4
ACE decisively breached the 'Falling Channel' pattern at the Rs 1,460 level on the weekly chart with robust volumes, signaling a continuation of the medium-term uptrend. Volume activity remained subdued during the pattern formation; however, a surge in volume at the breakout indicates increased market participation.
The stock found support at the 38% Fibonacci retracement level of the rally from Rs 644 to Rs 1,695, near Rs 1,168, and rebounded sharply, establishing a robust medium-term support base. The weekly RSI strength indicator is above its reference line, indicating a positive bias. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 1,660, Rs 1,700
Stop-Loss: Rs 1,340
Aegis Logistics | CMP: Rs 825.8
Aegis Logistics is sustaining above the medium-term upward-sloping trendline, with a bounce confirming strong support at the trendline. The increase in volume activity at the support level, near the upward-sloping trendline, suggests that market participants are establishing positions at this crucial support zone. The stock holds above its key short and medium-term daily moving averages (20-, 50-, 100-, and 200-day), indicating a positive bias. The weekly RSI strength indicator crossed above its reference line, generating a buy signal. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 935, Rs 955
Stop-Loss: Rs 780
Ameya Ranadive, CMT CFTe, Senior Technical Analyst at StoxBox
Religare Enterprises | CMP: Rs 309.5
Religare Enterprises has displayed a robust uptrend. The stock recently broke above its key resistance levels on the back of strong volumes, signaling bullish momentum. The Average Directional Index (ADX) stands at 46.71, indicating a strong trend, while the RSI is at 75.38, reflecting overbought conditions but sustaining bullish sentiment.
The price is comfortably trading above its 21-, 50-, and 200-day EMAs, confirming sustained strength. Immediate resistance is seen at Rs 335 and Rs 356, aligned with prior swing highs and Fibonacci extensions. On the downside, support rests at Rs 280, coinciding with the 21-day EMA. A breach below Rs 280 would negate the bullish view. Volumes have significantly spiked in recent sessions, validating the price action and suggesting accumulation.
Strategy: Buy
Target: Rs 335, Rs 356
Stop-Loss: Rs 280
KFin Technologies | CMP: Rs 1,444.5
KFin Technologies displayed strong bullish momentum while maintaining its position within a rising channel. The stock is trading comfortably above its 21-, 50-, and 200-day EMAs, highlighting a well-supported uptrend. The ADX at 47.72 confirms a strong trend, while the RSI at 82.68 signals overbought conditions, suggesting the rally may approach critical levels. Robust volume activity further validates sustained buying interest. Our targets are set at Rs 1,550–Rs 1,615, with the bullish outlook intact as long as the stock holds above Rs 1,280. The alignment of key technical indicators underpins confidence in the ongoing uptrend.
Strategy: Buy
Target: Rs 1,550, Rs 1,615
Stop-Loss: Rs 1,280
Zen Technologies | CMP: Rs 2,493
Zen Technologies is showing robust momentum. The stock is in a well-defined upward-moving channel, supported by significantly higher volumes over the last two weeks compared to its average. This indicates strong buying interest and institutional participation. The stock is comfortably above its 21-, 50-, and 200-day EMAs, confirming the continuation of its uptrend. The ADX at 39.83 reflects a strong trend, while the RSI at 82.89 signals overbought territory, suggesting caution as it approaches critical levels.
Strategy: Buy
Target: Rs 2,650, Rs 2,725
Stop-Loss: Rs 2,250
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Jupiter Wagons | CMP: Rs 540.8
Jupiter Wagons has witnessed a breather post the sloping trendline breakout it saw last week. The counter is firmly placed above a cluster of its significant EMAs, coinciding with the 200 SMA, suggesting strong nearby support. The recent profit booking has led the stock to re-test its breakout zone, providing an opportunity to accumulate the counter from a short to medium-term view. The MACD (Moving Average Convergence Divergence), along with other oscillators, hovers in a comfortable zone, adding an inherent bullish stance to the counter. Hence, we recommend buying Jupiter Wagons around Rs 530.
Strategy: Buy
Target: Rs 590
Stop-Loss: Rs 495
Techno Electric & Engineering Company | CMP: Rs 1,625.15
Techno Electric has lately started gaining some traction from the lows of the Rs 1,400 subzone and resurged to negate the bearish cycle of lower highs. The counter witnessed strong moves while its resurgence soared above its short-term moving averages after a long haul, indicating a potential turnaround. Also, with the recent move, the stock has emerged above the 50% Fibonacci retracement of the intermediate correction, which complies with a bullish outlook in the short term. Furthermore, the MACD has signaled a positive crossover, suggesting that the stock is well-positioned to continue its upward journey in the near future. Hence, we recommend buying Techno Electric around Rs 1,620–1,600.
Strategy: Buy
Target: Rs 1,780, Rs 1,800
Stop-Loss: Rs 1,500
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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