The benchmark indices closed flat amid volatility, with the Nifty 50 continuing its downtrend for the third consecutive session on November 11. The market breadth was negative, with about 1,772 shares falling against 738 advancing shares on the NSE. The rangebound trade is expected to continue, with a focus on stock-specific action in the upcoming sessions. Below are some trading ideas for the near term:
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Birlasoft Futures | CMP: Rs Rs 574.4
Technically, Birlasoft has formed an Inverse Head and Shoulders pattern, which is a bullish reversal pattern. The momentum indicator MACD (Moving Average Convergence Divergence) has provided a bullish crossover with a positive divergence, indicating a higher probability of a bounce back. From the derivatives point of view, there have been no major shorts in the previous correction; rather, it witnessed some long unwinding. Therefore, there is a higher probability of a reversal from down to up. The Rs 580 strike has the highest addition on the Call front, followed by Rs 600 strike. Hence, Rs 600 is the first hurdle, and if taken out, the stock may zoom to the Rs 620 level.
Strategy: Buy
Target: Rs 600, Rs 620
Stop-Loss: Rs 559
Axis Bank Futures | CMP: Rs 1,173
Technically, Axis Bank Futures has been consolidating in a triangular pattern and is currently reversing from the lower end of the range. It is expected to inch towards the upper end of the range, with target levels of Rs 1,220 and Rs 1,260. The momentum indicator MACD has provided a bullish crossover on the daily charts. From the derivatives point of view, the PCR (Put-Call Ratio) is quite oversold at 0.51, and there has been significant Call unwinding from the Rs 1,100 to Rs 1,200 strike, indicating a higher probability of a bounce back in the stock. There is still significant built-up from Rs 1,170 to Rs 1,200 on the Call side. Given the shorts in the stock and the positive momentum, a reversal due to short covering is expected.
Strategy: Buy
Target: Rs 1,220, Rs 1,260
Stop-Loss: Rs 1,139
Indian Hotels Futures | CMP: Rs 729.7
Technically, Indian Hotels has provided an upside breakout from a triangular pattern, continuing its uptrend. The momentum indicator MACD has also given a bullish crossover, so further upside cannot be ruled out. The breakout has occurred with an increase in volumes, which increases the probability of continued upside movement. There has been significant unwinding in Calls from Rs 700 to Rs 630 strikes, making Rs 700 and above a critical support zone. As long as this support is held, the stock is likely to inch towards Rs 765 and Rs 790 levels.
Strategy: Buy
Target: Rs 765, Rs 790
Stop-Loss: Rs 706
Mehul Kothari, DVP – Technical Research at Anand Rathi
HDFC Bank | CMP: Rs 1,766.3
After several attempts in the past few weeks, HDFC Bank has managed to confirm a range breakout above the Rs 1,770 mark. The daily RSI (Relative Strength Index) is on the verge of a similar breakout, which, once achieved, will pull the RSI above the 60 level. This could trigger faster momentum in the stock. Traders are advised to go long near Rs 1,765, with an upside target of Rs 1,825.
Strategy: Buy
Target: Rs 1,825
Stop-Loss: Rs 1,735
ICICI Bank | CMP: Rs 1,269.3
Despite the high selling in the market, ICICI Bank has relatively outperformed. The stock has found support at the placement of a rising trendline, coinciding with the 50-day Exponential Moving Average (DEMA), indicating a potential for a bounce. Traders are advised to go long in the stock above Rs 1,275 for an upside target of Rs 1,335.
Strategy: Buy
Target: Rs 1,335
Stop-Loss: Rs 1,245
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
Oracle Financial Services Software | CMP: Rs 11,933
Oracle Financial Services: Oracle Financial Services is in classical bullish momentum, forming higher highs and higher lows on the longer timeframes. The previous swing high of Rs 12,600 is an immediate resistance level, and a move above this could lead to a target of Rs 12,800+ in the near term. On the downside, the previous breakout level of Rs 11,500 is a critical support zone, with Rs 11,200 acting as a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
Strategy: Buy
Target: Rs 12,892
Stop-Loss: Rs 11,200
HCL Technologies | CMP: Rs 1,867.3
HCL Technologies is in a clear uptrend and has recently broken out of a triangle formation, signaling the continuation of bullish momentum. This breakout is supported by increasing volume and has held above the breakout level, even amid broader market weakness. The stock is trading above key moving averages, with momentum indicators showing a positive bias. On the downside, the Rs 1,825 level is a key support, with Rs 1,800 serving as the next support level if the price dips further. The stock consistently respects its 20-day moving average, which is a strong indication of trend strength.
Strategy: Buy
Target: Rs 1,962
Stop-Loss: Rs 1,825
VA Tech Wabag | CMP: Rs 1,797.3
VA Tech Wabag is emerging from a symmetrical triangle pattern on the daily chart. The overall structure looks favourable as it trades above its important moving averages. On the upside, Rs 1,900 is an immediate resistance, and a breakout above this could lead to a run-up towards Rs 1,980 levels in the near term. On the downside, Rs 1,650 is a major support level for any correction. The momentum indicator RSI is positively poised, and the MACD is supporting the current strength.
Strategy: Buy
Target: Rs 1,980
Stop-Loss: Rs 1,650
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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