The frontline indices could not sustain their previous day's gains due to selling pressure, falling a little over 0.6 percent on July 24, with market breadth dominated by bears. About 1,721 shares saw a correction compared to 921 that advanced on the NSE. The consolidation is expected to continue, with benchmark indices likely finding support at the 50-day EMA. Below are some short-term trading ideas to consider:
Jay Mehta, Technical Research at JM Financial Services
Gujarat Pipavav Port | CMP: Rs 165.83
GPPL has broken out from a symmetrical triangle pattern and has successfully retested the breakout zone, rebounding strongly. The breakout was accompanied by a significant volume surge, with an additional volume spike observed on the recent bullish Belt Hold candle formed at the 200-day EMA—indicating bullish strength. The stock is trading above both short- and long-term moving averages, reflecting strong relative strength. The short-term outlook remains positive.
Strategy: Buy
Target: Rs 176, Rs 182
Stop-Loss: Rs 153
Rashtriya Chemicals & Fertilizers | CMP: Rs 157.18
RCF has broken out above a descending triangle pattern with notable volume expansion, signaling strong bullish momentum. The stock is trading above its short- and long-term moving averages, confirming the uptrend. Momentum indicators support further upside, with the RSI moving above 50 and the MACD trending upward from its centerline. A decisive break above Rs 160 could drive the stock toward targets of Rs 168 and Rs 173.
Strategy: Buy
Target: Rs 168, Rs 173
Stop-Loss: Rs 149
Swan Energy | CMP: Rs 509.75
Swan Energy broke out from a prolonged consolidation phase on July 15, backed by strong volumes. The stock is now consolidating in a tight range above the 200-day EMA, indicating a temporary pause in bullish momentum. Strong relative strength and momentum indicators suggest continued bullishness in the near term. The price action is forming a flag-and-pole pattern, and a breakout above Rs 526 could trigger renewed bullish momentum, with targets at Rs 590 and Rs 610.
Strategy: Buy
Target: Rs 590, Rs 610
Stop-Loss: Rs 459
Hardik Matalia, Derivative Analyst at Choice Broking
Jindal Steel & Power | CMP: Rs 1,000.45
Jindal Steel & Power has shown a strong technical breakout. The stock has recently completed the formation of a classic Inverted Head & Shoulders pattern—a bullish reversal formation that typically signals the end of a downtrend and the beginning of an uptrend. The neckline resistance above Rs 980 has been breached, supported by rising volumes and strong momentum. The stock is trading well above all standard EMAs, indicating strong momentum. A follow-through action above Rs 1,000 would confirm the trend extension.
Momentum oscillators like RSI and MACD are likely in bullish zones, given the sharp rally and volume behaviour. Price is riding the upper Bollinger Band, reflecting strong trend intensity and the characteristics of a sustained uptrend.
Strategy: Buy
Target: Rs 1,090
Stop-Loss: Rs 960
Lupin | CMP: Rs 1,941.4
Lupin has delivered a decisive move on the technical chart, breaking out from a falling trendline—indicating a potential reversal from its recent downtrend. The breakout zone, stemming from the January 2025 highs, had consistently acted as resistance. Thursday’s breakout above this trendline signals a shift in sentiment. This development marks a significant technical turning point after months of consolidation and downward pressure.
The current price has crossed above the 20 EMA and is now approaching the 100 EMA resistance zone. Sustaining above Rs 1,950–1,960 could trigger further bullish momentum. Volume expansion near the breakout zone typically supports the sustainability of the up move. Additionally, the recent formation of higher lows reflects base building and reduced selling pressure.
On the downside, immediate support is located at Rs 1,900, while a stop-loss at Rs 1,870 (recent swing low) is recommended to manage risk. The RSI, currently at 50.03, is trending upward—indicating growing buying momentum.
Strategy: Buy
Target: Rs 2,100
Stop-Loss: Rs 1,870
Shyam Metalics and Energy | CMP: Rs 951.9
Shyam Metalics has confirmed a Cup and Handle pattern breakout on the daily chart. The breakout above the neckline zone of Rs 940–945 came after a well-rounded cup formation followed by a short-term consolidation handle. The stock is trading well above all key EMAs, reflecting strong bullish sentiment and overall trend alignment.
Earlier this month, the 20-EMA crossover above the 50-EMA signaled a strengthening trend. In recent weeks, the stock had moved sideways with a mild downward drift—perfectly forming the handle part of the pattern. The breakout above Rs 945 confirms the bullish continuation, with potential for new highs.
Strategy: Buy
Target: Rs 1,030
Stop-Loss: Rs 915
Om Mehra, Technical Research Analyst at Samco Securities
Dixon Technologies | CMP: Rs 16,768
Dixon Technologies has continued its strong upward momentum, registering a breakout from a flag pattern formation—a classic bullish continuation pattern that follows a steep rally. The stock has resumed its uptrend, supported by above-average volume, confirming strength behind the move.
Dixon is trading comfortably above all key moving averages. The clean separation from short-term EMAs highlights its strong bullish undertone.
The RSI remains at 70, maintaining a rising slope with no sign of reversal. The MACD shows a strong bullish crossover, with the signal lines trending higher, indicating continued upside momentum. A falling flag breakout has occurred just below recent highs, and the breakout candle has held above the previous resistance. The weekly chart also remains bullish.
Strategy: Buy
Target: Rs 17,700
Stop-Loss: Rs 16,250
REC | CMP: Rs 404.9
REC is breaking out from a short-term ascending triangle pattern on the daily chart. The stock has crossed above the Rs 400 mark, a key resistance level in recent sessions. The breakout occurred with increased volume, suggesting building bullish momentum.
The price is now trading above both the 20-day and 50-day moving averages, signaling a strengthening short-term trend. The upward-sloping trendline from the Rs 394 zone has provided solid support during the recent consolidation.
The RSI has improved to 56, rising above the neutral 50 mark and showing positive momentum. The slope remains upward, validating the strength behind the breakout. The hourly Supertrend could act as support in case of short-term pullbacks. The Rs 400 level, now a former resistance, has turned into immediate support.
Strategy: Buy
Target: Rs 432
Stop-Loss: Rs 393
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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