The benchmark indices extended their downtrend for the third straight session, falling 0.32 percent with negative market breadth. A total of 1,591 shares declined compared to 1,230 advancing shares on the NSE. The market may rebound after the recent correction, but the sustainability of those gains will be the key to watch. Below are some short-term trading ideas to consider:
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
ICICI Prudential Life Insurance Company | CMP: 642.85
ICICI Prudential Life has given a decisive breakout above a downward-sloping trendline on the daily chart, signalling a shift in trend. The stock is trading above all key short- and long-term moving averages, reinforcing its strong bullish structure. The RSI is rising and has settled at 64, indicating improving momentum. In the ADX indicator, the DI+ crossover above DI– suggests that buyers are regaining control.
Additionally, the MACD has crossed above its signal line and the zero line, confirming bullish momentum and strengthening the probability of follow-through gains in the near term. Hence, we recommend accumulating the stock in the zone of Rs 645–640 with a stop-loss at Rs 620.
Strategy: Buy
Target: Rs 685
Stop-Loss: Rs 620
FSN E-Commerce Ventures Nykaa | CMP: Rs 247
Nykaa has broken down from its upward-sloping trendline on the daily chart, signalling a shift in momentum. The stock is trading below its key short-term moving averages — the 20- and 50-day EMAs — indicating sustained near-term weakness. The RSI continues to fall, suggesting increased bearish pressure.
In the ADX indicator, DI– is above DI+, reflecting strengthening control of sellers. Rising red MACD histogram bars, along with the MACD line staying below the zero line, further confirm persistent bearish momentum.
Hence, we recommend selling the stock in the zone of Rs 247–250 with a stop-loss at Rs 258. On the downside, it is likely to test Rs 225 in the short term.
Strategy: Sell
Target: Rs 225
Stop-Loss: Rs 258
Nilesh Jain, Head- Equity Technical & Derivative Research at Centrum Broking
Hindustan Zinc | CMP: Rs 512.65
Hindustan Zinc is on the verge of a breakout from a symmetrical triangle pattern near the Rs 515 level. Momentum indicators and oscillators are firmly in buy mode on both the daily and weekly charts, and the stock continues to trade well above all key short- and long-term moving averages.
On the downside, strong support from the 21- and 50-DMA is placed around Rs 486. Given this setup, the stock is poised to move toward Rs 555 in the near term, with a breakout above Rs 515 likely to trigger the next leg of upside.
Strategy: Buy
Target: Rs 555
Stop-Loss: Rs 486
One 97 Communications Paytm | CMP: Rs 1,268.3
Paytm is on the verge of a breakdown from a rising wedge pattern on the daily chart, with a move below Rs 1,250 likely to confirm the pattern breakdown. It has already slipped beneath its short-term 21- and 50-DMA, and a fresh MACD sell crossover on the daily chart further reinforces the bearish momentum.
On the derivatives front, a buildup of fresh short positions also supports the weak outlook. The conservative downside target for this pattern is around Rs 1,200, while a move above Rs 1,320 would invalidate the bearish setup.
Strategy: Sell
Target: Rs 1,150
Stop-Loss: Rs 1,320
Rupak De, Senior Technical Analyst at LKP Securities
Cummins India | CMP: Rs 4,535.7
Cummins India has shown resilience amid the broader market sell-off. For several weeks, it has been sustaining above the 21 EMA, confirming a strong positive trend. The RSI is in a bullish crossover and rising, indicating robust price momentum.
Additionally, Wednesday’s up-move was supported by healthy volume. In the near term, sentiment is expected to remain strong, with potential for the stock to move toward Rs 4,800. On the downside, support is placed at Rs 4,400; a break below this level could weaken the structure.
Strategy: Buy
Target: Rs 4,800
Stop-Loss: Rs 4,400
Central Depository Services (India) | CMP: Rs 1,479.3
CDSL has slipped below the 200 DMA, indicating the emergence of a bearish trend even in the medium to long term. The 21 EMA and 50 EMA are in a bearish crossover, further reinforcing negative sentiment.
The RSI is also in a bearish crossover and declining, highlighting weakening price momentum. The short-term view remains bearish with a potential decline toward Rs 1,430. On the higher side, resistance is placed at Rs 1,505. Sell CDSL (December Future) around Rs 1,480.
Strategy: Sell
Target: Rs 1,430
Stop-Loss: Rs 1,505
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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