Trade Spotlight: How should you trade Granules India, SRF, IDFC First Bank, Pricol, Mahindra Finance, and others on December 18?

Top Buy and Sell Ideas for December 18

Equity benchmarks remained under pressure for the third consecutive day, with the Nifty 50 declining 0.16 percent on December 17 amid consistent weakness in market breadth. A total of 1,980 shares were dominated by bears, while 873 shares advanced on the NSE. The market may continue to consolidate until it trades above short-term moving averages. Below are some short-term trading ideas to consider:

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Granules India | CMP: Rs 579.7

Granules India is approaching a significant breakout from its multi-month falling trendline, which is positioned around the Rs 582 level. The recent price action, supported by higher-than-average volumes, strengthens the bullish outlook. Additionally, the stock is trading comfortably above both its short-term and long-term moving averages, indicating strong underlying momentum.

A decisive breakout above the Rs 582 level could lead to further upside, with the potential to move towards the Rs 630 zone. On the downside, the stock continues to find consistent support along its rising trendline connecting the major lows, currently placed near Rs 552. Considering these technical factors, the stock appears well positioned to head towards the Rs 630 level in the near term.

Strategy: Buy

Target: Rs 630

Stop-Loss: RS 552

SRF | CMP: Rs 3,033.3

SRF has formed a strong base and has broken out from an inverse Head and Shoulders pattern on the daily chart. It is expected to test the upper boundary of the triangle pattern and subsequently advance towards the Rs 3,250 level in the near term.

Momentum indicators are also supportive, with the RSI moving above 60 and a bullish crossover on the MACD confirming strengthening upside momentum. Overall, the technical setup indicates that the stock is well placed for a move towards Rs 3,250, while immediate support is seen around the Rs 2,930 level.

Strategy: Buy

Target: Rs 3,250

Stop-Loss: Rs 2,930

SBI Cards and Payment Services | CMP: Rs 834.4

SBI Card has been facing persistent selling pressure at higher levels and has now confirmed a fresh breakdown from a symmetrical triangle pattern on the daily chart. It has also moved below its 100-DMA and 200-DMA, indicating growing weakness. Additionally, a fresh sell crossover on the daily MACD strengthens the bearish momentum.

From a derivatives perspective, the build-up of fresh short positions further supports the negative outlook. Based on the pattern, a conservative downside target is seen around the Rs 780 level, while a move above Rs 860 would negate the bearish setup.

Strategy: Sell

Target: Rs 780

Stop-Loss: Rs 860

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

IDFC First Bank | CMP: Rs 83.95

IDFC First Bank delivered a decisive horizontal trendline resistance breakout on December 15 and has successfully sustained above the breakout level for two consecutive sessions, lending credibility to the move. The breakout was backed by a noticeable rise in volumes, indicating strong participation.

ADX, which had earlier plateaued, has now started to rise, suggesting strengthening trend momentum. The MACD remains above both the signal line and the zero line, with rising green histogram bars highlighting increasing bullish momentum.

Additionally, the ratio line in the IDFC First Bank / Nifty Private Bank ratio chart has broken above its previous swing high, signalling potential outperformance versus the sector going ahead. Hence, we recommend accumulating the stock in the Rs 84–83 zone with a stop-loss at Rs 80. On the upside, it is likely to test the Rs 89 level in the short term.

Strategy: Buy

Target: Rs 89

Stop-Loss: Rs 80

Pricol | CMP: Rs 651.2

Pricol was consolidating in the Rs 590–639 range since November 25 and has now witnessed a decisive breakout from this zone, supported by a healthy rise in volumes, indicating strong buying interest. During the consolidation phase, the stock consistently held above its 20-day EMA, highlighting underlying strength and accumulation at lower levels.

The RSI is in a rising mode and is currently placed at 66, reflecting strong bullish momentum without entering overbought territory. Meanwhile, the MACD line is on the verge of crossing above the signal line, with shrinking histogram bars suggesting that bearish momentum is fading and fresh bullish momentum could emerge in the near term. Hence, we recommend accumulating the stock in the Rs 653–648 zone with a stop-loss at Rs 630. On the upside, it is likely to test the Rs 700 level in the short term.

Strategy: Buy

Target: Rs 700

Stop-Loss: Rs 630

Oberoi Realty | CMP: Rs 1,609.9

Oberoi Realty has been consolidating in the Rs 1,595–1,706 range since November 24, but price action continues to reflect underlying weakness. The stock has consistently failed to move decisively above the midline of the Bollinger Bands since December 5, indicating a lack of bullish follow-through.

The RSI remains flat and subdued around the 40 mark, pointing to weak momentum. On the trend front, DI- staying well above DI+ on the ADX suggests bearish dominance and stronger downside pressure. Additionally, the MACD line trading below both the zero line and the signal line highlights persistent negative momentum, keeping the bias tilted towards further consolidation or downside.

Hence, we recommend selling the stock in the Rs 1,615–1,605 zone with a stop-loss at Rs 1,660. On the downside, it is likely to test the Rs 1,500 level in the short term.

Strategy: Sell

Target: Rs 1,500

Stop-Loss: Rs 1,660

Rupak De, Senior Technical Analyst at LKP Securities

Mahindra and Mahindra Financial Services | CMP: Rs 351.7

M&M Financial Services (Mahindra Finance) has given a consolidation breakout on the 2-hourly chart, indicating improving optimism around the counter. The price has moved above the 21 EMA, confirming a near-term uptrend.

The RSI has also registered a consolidation breakout on the 2-hourly chart, further pointing to strengthening bullish momentum. On the higher end, the stock may move towards Rs 370 in the near term, while support is placed at Rs 340, below which the trend could weaken.

Strategy: Buy

Target: Rs 370

Stop-Loss: Rs 340

Titan Company | CMP: Rs 3,907.9

Titan Company has given a falling channel breakout on the 2-hourly chart, indicating increased optimism around the counter. The price has been sustaining above the 21 EMA, confirming a near-term uptrend.

On the daily chart, the price witnessed a small consolidation on Wednesday accompanied by lower volumes, suggesting that the stock is largely being held by investors. On the higher end, the stock may move towards Rs 4,150 in the near term, while support is placed at Rs 3,840, below which the trend could weaken.

Strategy: Buy

Target: Rs 4,140

Stop-Loss: Rs 3,840

Bajaj Auto | CMP: Rs 8,895

Bajaj Auto has witnessed a slip below its recent consolidation, suggesting a rise in bearish bets around the stock. Additionally, the price has fallen below the crucial 50 EMA, confirming a weak trend. The RSI has also entered a bearish crossover and is trending lower. Over the short term, the stock may drift towards Rs 8,600, while resistance is placed at Rs 9,050.

Strategy: Sell

Target: Rs 8,600

Stop-Loss: Rs 9,050