The market bounced back and closed more than half a percent higher, though there was some profit booking at higher levels on January 28. The breadth remained weak, with a downtrend in broader markets. About 1,812 shares saw a correction compared to 767 shares that witnessed buying interest on the NSE. The market may extend its northward journey, but elevated volatility may keep bulls cautious. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
HDFC Bank | CMP: Rs 1,670.4
On the daily scale, after a correction from higher levels, HDFC Bank was trading in a rangebound mode. However, it has given a range breakout along with good volumes. Additionally, on the weekly charts, the counter has formed a higher bottom series. Therefore, the closing above the resistance line indicates that further bullish momentum is likely to continue in the coming horizon.
Strategy: Buy
Target: Rs 1,790
Stop-Loss: Rs 1,615
Max Financial Services | CMP: Rs 1,043.4
After the remarkable up move in the counter on a weekly basis, Max Financial Services witnessed profit booking at higher levels. Following the recent selloff in the counter, the downward momentum has stopped. Moreover, the counter has found support near its multiple demand zones. This formation suggests a revival of the uptrend from the current levels in the near future.
Strategy: Buy
Target: Rs 1,120
Stop-Loss: Rs 1,010
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Bandhan Bank | CMP: Rs 151.12
Private banks showed good recovery from the lows in the previous session. Bandhan Bank surged by more than 2% intraday. On the daily chart, prices have just closed above the mid-Bollinger Bands. Now, with follow-up action, a journey towards the upper bands is expected, which is near Rs 160 levels. The stock is following the simple bar technique as it has managed to close above the previous day's high, which keeps the short-term bias on the positive side as long as there is no close below the previous day's low. In summary, the trend for Bandhan Bank is bullish. A break above Rs 153 can lift the price higher towards Rs 160, followed by Rs 167 levels. On the downside, Rs 146 is the crucial support.
Strategy: Buy
Target: Rs 160, Rs 167
Stop-Loss: Rs 146
InterGlobe Aviation | CMP: Rs 4,282.5
Interglobe Aviation (IndiGo) has been inching higher day by day since January 23. In the previous session, the stock showed a good rise and closed near the day's high at Rs 4,282 levels, with a gain of 2.56%. In the previous week, prices reversed from the support of the trendline. The MACD (Moving Average Convergence Divergence) has recently shown a bullish crossover. Along with this, the Parabolic SAR dots have also started to form below the price, which is acting as double confirmation for the bullish stance.
So, for now, as long as we do not see a close below the previous day's low, bullish momentum is likely to continue in this stock. In summary, the current trend for IndiGo is positive. A break above Rs 4,310 levels can lift the prices towards Rs 4,480 levels, followed by Rs 4,690 levels. On the downside, Rs 4,125 levels is the nearest support.
Strategy: Buy
Target: Rs 4,480, Rs 4,690
Stop-Loss: Rs 4,125
Garden Reach Shipbuilders & Engineers | CMP: Rs 1,507.1
Garden Reach Shipbuilders closed on a positive note with a gain of 3.67%. The stock has been forming a triangle pattern since June 2024. It is on the verge of giving a breakout from it. For now, a break above Rs 1,570 can confirm the breakout of the said pattern. If this happens, we can expect a fresh rise in this stock towards Rs 1,700 levels or higher.
Ahead of the Budget, all defense stocks are under focus, and if price action confirms, we can expect further upward momentum in this sector. In summary, GRSE is at a crucial juncture. A break above Rs 1,570 levels can lift the prices towards Rs 1,620, followed by Rs 1,700 levels. On the downside, Rs 1,500 is the nearest support to look out for.
Strategy: Buy
Target: Rs 1,620, Rs 1,700
Stop-Loss: Rs 1,500
Om Mehra, Technical Analyst, SAMCO Securities
Ramco Cements | CMP: Rs 907.1
Ramco Cements has displayed a remarkable recovery following a prolonged downtrend, supported by a steady rise in volumes. The stock has crossed above its 10-day moving average, signaling a shift in sentiment toward the upside. The short-term resistance is at Rs 912, and a breakout above this level could lead to further gains. On the daily chart, the stock is showing a Morning Star candlestick pattern. As long as it holds, Rs 880 acts as a crucial support level on the downside, preserving the bullish structure. The recent surge in volumes adds confidence to the recovery, reflecting strong participation from buyers. Hence, based on the above technical structure, one can initiate a long position at the CMP (current market price) of Rs 907.
Strategy: Buy
Target: Rs 990
Stop-Loss: Rs 870
Mahindra and Mahindra | CMP: Rs 2,870.6
Mahindra and Mahindra has shown a promising recovery from its recent lows around the Rs 2,800 level, which acted as a strong demand zone, supported by robust volumes. The stock has managed to reclaim the Rs 2,850 mark and was up 1.38% on Tuesday, reflecting renewed buying interest. The daily RSI is rebounding from the lower level, adding potential strength. A break above Rs 2,930, backed by sustained volumes, could open the gates for a further rally. Hence, based on the above technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 3,180
Stop-Loss: Rs 2,750.
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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