The benchmark indices continued to gain despite consolidation, with the Nifty 50 rising half a percent and maintaining its upward journey for the third consecutive session on April 16. The bulls dominated market breadth, as about 1,839 shares advanced against 723 declining shares on the NSE. The market may see some consolidation after the recent significant run-up. Below are some trading ideas for the near term:
Jatin Gedia, Technical Research Analyst, Capital Market Strategy at Mirae Asset Sharekhan
Indian Bank | CMP: Rs 568.15
Indian Bank has broken out of a Triangle pattern on the daily charts. Triangles are trend continuation patterns; hence, this breakout suggests a resumption of the upmove after a brief consolidation. The daily momentum indicator has shown a positive crossover, which is a buy signal.
Strategy: Buy
Target: Rs 585, Rs 615
Stop-Loss: Rs 550
Zee Entertainment Enterprises | CMP: Rs 112.62
ZEE has closed above the neckline of an Inverted/Bullish Head and Shoulders pattern on the upside. The breakout has been accompanied by above-average volume, indicating increased participation in the direction of the trend. The daily momentum indicator has given a positive crossover, which is a buy signal.
Strategy: Buy
Target: Rs 124
Stop-Loss: Rs 106
Federal Bank | CMP: Rs 194.92
Federal Bank has broken out of a Bullish Flag pattern on the upside. After pulling back to the short-term moving averages, it has witnessed renewed buying interest. The stock is expected to resume its next leg of upmove and head towards ?205.
Strategy: Buy
Target: Rs 205
Stop-Loss: Rs 192
Sudeep Shah, Deputy Vice President and Head of Technical and Derivative Research at SBI Securities
Bank of Baroda | CMP: Rs 240.79
Bank of Baroda marked a swing high of Rs 242 on April 4 and subsequently witnessed a throwback. This throwback was halted between the 38.2% and 50% Fibonacci retracement levels of its prior upward rally (Rs 190.70–RS 242.34), coinciding with the 50-day EMA level. Since then, the stock has rebounded.
Interestingly, the daily RSI (Relative Strength Index) took support near the 60 level and then rebounded, which is a bullish sign as per RSI range shift theory. Other momentum indicators and oscillators also portray a bullish picture for the stock. Hence, we recommend accumulating in the Rs 241–RS 238 zone, with a stop-loss at Rs 230. On the upside, it is likely to test Rs 260 in the short term.
Strategy: Buy
Target: Rs 260
Stop-Loss: Rs 230
Ceat | CMP: Rs 3,023.8
Ceat has given a horizontal trendline breakout on the daily scale, confirmed by robust volume. Additionally, it has formed a sizeable bullish candle on the breakout day, adding further strength. The stock is currently trading above its short- and long-term moving averages. The 20- and 50-day EMAs have started to edge higher, which is a bullish sign. The daily RSI is above the 60 mark and is in a rising trajectory.
The trend strength indicator, ADX (Average Directional Index), is quoting near 24 levels, and the directional indicators continue in buy mode as +DI remains above –DI. Furthermore, on the daily chart, the signal line of the MACD (Moving Average Convergence Divergence) has crossed the zero line, and the histogram has turned bullish. Hence, we recommend accumulating in the Rs 3,025–Rs 3,000 zone, with a stop-loss at Rs 2,890. On the upside, it is likely to test Rs 3,240 in the short term.
Strategy: Buy
Target: Rs 3,240
Stop-Loss: Rs 2,890
Vidnyan S Sawant, Head of Research at GEPL Capital
Aditya Birla Capital | CMP: Rs 195.82
Aditya Birla Capital has exhibited robust structural development across multiple timeframes. On the monthly chart, the stock has regained buying strength from the key 61.8% Fibonacci retracement level of the prior uptrend (Rs 85.60 to Rs 246.90), highlighting a significant demand zone.
On the weekly timeframe, it has formed a Double Bottom pattern, indicating a potential trend reversal and renewed bullish momentum. Supporting indicators further reinforce the outlook, with the MACD showing a bullish crossover and the RSI currently at 56, gradually moving toward the key 60 level. This convergence of price structure and momentum signals increases the probability of continued upside.
Strategy: Buy
Target: Rs 220
Stop-Loss: Rs 186
Max Financial Services | CMP: Rs 1,209.7
Max Financial Services has been consistently forming higher tops and higher bottoms on the monthly timeframe, indicating a strong and sustained uptrend. In the recent month, the stock witnessed a bullish mean reversion from its 26-month EMA, suggesting continued upward momentum.
On the weekly chart, the stock showed renewed buying interest from the 50% Fibonacci retracement level of its previous upmove from Rs 599 to Rs 1,306. Adding further strength to the setup, the stock has posted seven consecutive weeks of positive closes. The RSI is currently at 60, reflecting sustained bullish momentum and reinforcing the likelihood of continued strength in the coming sessions.
Strategy: Buy
Target: Rs 1,364
Stop-Loss: Rs 1,146
Jubilant Foodworks | CMP: Rs 703
Jubilant FoodWorks has been forming a broad structural base pattern on the monthly timeframe, suggesting the potential foundation for a long-term uptrend. On the weekly scale, the stock has maintained a pattern of higher bottoms, highlighting bullish price development. On the daily chart, it continues to trade firmly above the key 12-day and 26-day EMAs, reinforcing near-term strength. Additionally, the weekly RSI stands at 57, signaling improving momentum.
Strategy: Buy
Target: Rs 807
Stop-Loss: Rs 659
Engineers India | CMP: Rs 183.72
Engineers India has displayed a robust polarity shift on the higher timeframes, staging a strong turnaround from the prior multi-year resistance levels marked by the 2010 and 2017 swing highs. These levels have now established themselves as a solid support zone. In the current week, the stock witnessed a breakout from a 14-week consolidation phase, marked by a strong bullish candlestick. Additionally, the RSI momentum indicator stands at 53 and is trending above its 9-period average, signaling improved momentum and reinforcing the bullish outlook.
Strategy: Buy
Target: Rs 215
Stop-Loss: Rs 172
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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