Trade Spotlight: How should you trade IDFC First Bank, Asian Paints, HDFC Life, Coal India, and others on Thursday?

IDFC First Bank has broken out of an ending diagonal pattern on the daily charts. We expect it to retrace the recent fall and rise towards Rs 77–79 levels from a short-term perspective. The daily momentum indicator has triggered a positive crossover, which is a buy signal. One should keep a stop-loss at Rs 71 for long positions.

Strategy: Buy

Target: 77, Rs 79

Stop-Loss: Rs 71

Asian Paints | CMP: Rs 3,151.55

Asian Paints has broken out from an Inverted Head and Shoulders pattern on the daily charts, which is a trend reversal pattern. The daily momentum indicator has shown a positive crossover, signaling a buy. We expect the stock to trade with a positive bias and anticipate levels of Rs 4,350–4,400 from a short-term perspective. A stop-loss of Rs 3,040 should be maintained for long positions.

Strategy: Buy

Target: Rs 4,350, Rs 4,400

Stop-Loss: Rs 3,040

Vidnyan S Sawant, Head of Research at GEPL Capital

Crompton Greaves Consumer Electricals | CMP: Rs 468

On the monthly chart, Crompton Greaves Consumer Electricals is developing a base pattern, indicating a solid and stable price structure. The stock is forming higher highs and higher lows on the weekly chart, signaling a strong bullish trend. Additionally, the stock is comfortably trading above its crucial 12-week and 26-week EMAs (Exponential Moving Averages), further supporting the bullish outlook. The MACD (Moving Average Convergence Divergence) indicator is also trending higher in positive territory, reinforcing the upward momentum. Looking ahead, there is potential upside for the stock, with a target of Rs 546. It's advisable to set a stop-loss at Rs 429 on a closing basis to manage risks effectively.

Strategy: Buy

Target: Rs 546

Stop-Loss: Rs 429

Hindustan Petroleum Corporation | CMP: Rs 407.5

Hindustan Petroleum Corporation maintains its bullish trend across higher time frames. On the weekly chart, the stock has shown strong resilience, breaking out of a W pattern, which underscores a solid price structure. On the daily chart, the formation of higher highs and higher lows further confirms the uptrend. The stock continues to trade above key moving averages, including the 12-week and 26-week EMAs. Moreover, a bullish crossover in the MACD momentum indicator highlights the positive trend, supported by sustained upward momentum. Looking ahead, there is potential upside for the stock with a target of Rs 476. To manage risks effectively, it's advisable to set a stop-loss at Rs 374 on a closing basis.

Strategy: Buy

Target: Rs 476

Stop-Loss: Rs 374

HDFC Life Insurance Company | CMP: Rs 724.55

HDFC Life has established a strong price structure after breaking out of the falling channel in July 2024, continuing to display a rising trend thereafter. On the daily chart, the stock has experienced a breakout from a flag pattern, surpassing the weekly pivot resistance level, which signifies robust momentum. Additionally, the stock is trading above its key 12-week and 26-week EMAs. The MACD indicator is on the verge of breaking out from its 2019 swing high, reinforcing the stock's readiness to accelerate its upward momentum. Looking ahead, the stock appears poised for further gains.

Strategy: Buy

Target: Rs 868

Stop-Loss: Rs 665

Coal India | CMP: Rs 532.2

Coal India has exhibited strong price development, consistently forming higher highs and higher lows since 2020, indicating a sustained bullish trend. The stock has repeatedly found support at the 12-week EMA during minor retracements, reinforcing the ongoing upward movement. Additionally, the RSI (Relative Strength Index) remains above 60 across various time frames, signaling that the positive trend is backed by strong bullish momentum. Looking ahead, there is potential upside for the stock, with a target of Rs 622.

Strategy: Buy

Target: Rs 622

Stop-Loss: Rs 485

Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities

Titan Company | CMP: Rs 3,560

Over the last few months, Titan has been trading in a broader range of Rs 3,150-3,550, with prices fluctuating around its 200-day Exponential Moving Average on daily charts. At the current juncture, the stock has formed an Inverted Head & Shoulders pattern and has also managed to break out above the neckline of the pattern. The sudden spike in volume activity with price action suggests further upside in the stock. Therefore, one can buy/hold/accumulate the stock for an expected upside of Rs 3,900-3,920 levels, with a downside support zone of Rs 3,540-3,520 levels.

Strategy: Buy

Target: Rs 3,900, Rs 3,920

Stop-Loss: Rs 3,300

Berger Paints | CMP: Rs 576

Berger Paints experienced a significant decline recently, dropping from Rs 650 to Rs 450 as part of a corrective phase. However, it found support around the Rs 450 level and formed a Double Bottom pattern. Since then, the stock has seen a V-shaped recovery, with a strong bounce back to Rs 550. It has also gained momentum, moving above the 200-day DEMA on both daily and weekly charts. This upward movement signifies a potential reversal, as the stock has broken out above the long-term bearish channel as well. Therefore, one can buy/hold/accumulate the stock for an expected upside of Rs 660-665 levels, with a downside support zone of Rs 570-560 levels.

Strategy: Buy

Target: Rs 660, Rs 665

Stop-Loss: Rs 520

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