The benchmark indices closed flat with a positive bias on August 23, with about 1,254 shares declining and 1,116 shares advancing on the NSE. The market is likely to maintain its upward journey amid intermittent consolidation. Here are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Barbeque Nation Hospitality | CMP: Rs 663
On the daily and weekly charts, Barbeque Nation Hospitality has witnessed a trend reversal as it has formed higher tops and bottoms. On the daily timeframe, the stock also saw a breakout from an "Inverse Head & Shoulders" trend reversal pattern at Rs 600 level, accompanied by significant volumes. It is also sustaining above its 30-week SMA (Simple Moving Average - Rs 563), which reconfirms the bullish trend. The stock is well placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with the price rise, further reaffirming the bullish trend. The daily, weekly, and monthly strength indicators, such as the RSI (Relative Strength Index), are in positive terrain, which justifies rising strength across all timeframes. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 720-785, with a downside support zone of Rs 635-615.
Jindal Poly Films | CMP: Rs 942
On the weekly charts, Jindal Poly Films has confirmed a "Flag" formation breakout at Rs 850 level on a closing basis, indicating the continuation of the prior uptrend. This breakout is accompanied by significant volumes, signifying increased participation. The stock is well placed above its 20, 50, 100, and 200-day SMAs, and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily, weekly, and monthly strength indicators, including the RSI, are in positive terrain, which justifies rising strength across all timeframes. The monthly "Bollinger band" buy signal indicates increased momentum. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 1,085-1,160, with a downside support zone of Rs 865-815.
BSE | CMP: Rs 2,741.65
BSE: Since March 24, BSE has experienced strong consolidation within the Rs 2,900-2,200 levels, along with rising volumes, signifying increased participation near major support zones. The stock has recaptured its 20, 50, 100, and 200-day SMAs and rebounded sharply, which reconfirms a strong support zone. The stock has also observed a four-month "down-sloping trendline" breakout at Rs 2,670 level. The daily and weekly strength indicators, such as the RSI, are in positive terrain, indicating rising strength. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 2,950-3,100, with a downside support zone of Rs 2,630-2,520.
Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities
RailTel Corporation of India | CMP: Rs 497
RailTel is in a healthy intermediate uptrend. After a recent correction, the stock has bounced from the 20-week SMA and cleared its nearby resistances with above-average volumes. Momentum readings, such as the 14-day RSI, are also in a rising mode, which bodes well for the continuation of the uptrend.
Strategy: Buy
Target: Rs 550
Stop-Loss: Rs 465
Apar Industries | CMP: Rs 8,950
Apar Industries has been consolidating in a range for the last few weeks. Last week, the stock bounced back from the 50-day SMA with above-average volumes, indicating rising interest in the stock. Momentum readings, such as the 14-day RSI, have also bounced back from oversold levels, which augurs well for the uptrend to continue.
Strategy: Buy
Target: Rs 9,600
Stop-Loss: Rs 8,400
Radico Khaitan | CMP: Rs 1,844.5
Radico Khaitan is in a healthy intermediate uptrend. After correcting and consolidating over the last few weeks above the 50-week SMA, this week saw the Radico stock breaking out of its recent range and closing at a new life high on a weekly closing basis. The breakout was accompanied by healthy volumes. Technical indicators are also giving positive signals as the stock trades above the 20 and 50-week SMAs. With the 14-week RSI in rising mode and above its 9-week EMA, we expect the stock to head higher in the coming sessions.
Strategy: Buy
Target: Rs 2,100
Stop-Loss: Rs 1,670
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Apollo Tyres | CMP: Rs 508.6
Apollo Tyres has recently experienced a notable decrease from its peak of Rs 568 to approximately the 200-day SMA on the daily timeframe chart. Historically, this level has served as a reliable support, sparking a strong rebound in the stock. The stock has started gaining traction in the last couple of trading sessions, aligning with the historical view. From a technical perspective, the indicators have rebounded from oversold conditions and have displayed a positive crossover, signaling a bullish trend in the stock. Hence, we recommend buying Apollo Tyres around Rs 505-500.
Strategy: Buy
Target: Rs 550
Stop-Loss: Rs 475
Axis Bank | CMP: Rs 1,166
Axis Bank witnessed a steep correction from the peak of Rs 1,340 and has retracted to 61.80 percent of the recent rally. The recent correction brought the counter towards a multi-layer support zone, starting from the historical consolidation to the 200-day SMA on the daily structure. Both supports constitute a strong base and provide an opportunity to accumulate the counter from a short to medium-term view. Additionally, on the oscillator front, MACD (Moving Average Convergence Divergence) signals a reversal move, suggesting a potential upside journey for the counter. Hence, we recommend buying Axis Bank around Rs 1,160-1,150.
Strategy: Buy
Target: Rs 1,260
Stop-Loss: Rs 1,110
The Indian Hotels Company | CMP: Rs 641.90
Indian Hotels has seen a substantial increase in price over the last couple of trading sessions and is comfortably hovering above a cluster of its major EMAs (Exponential Moving Averages). Additionally, the counter is on the verge of a "Symmetrical Triangle" pattern breakout on the daily structure chart, suggesting a potential breakout in the near future. On the oscillator front, most indicators are strongly aligned with the uptrend, adding a bullish outlook and suggesting a potential upside journey in the near term. Hence, we recommend buying Indian Hotels around Rs 640-630.
Strategy: Buy
Target: Rs 720
Stop-Loss: Rs 600
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
IndusInd Bank | CMP: Rs 1,388.55
IndusInd Bank has recently established a strong base around the support zone of Rs 1,330-1,350, which is a key area of interest for traders. This support zone is significant because it coincides with the completion of a bullish AB=CD pattern, a popular harmonic pattern that often signals a potential reversal or continuation of an uptrend. The bullish AB=CD pattern indicates that the stock may have reached a point of exhaustion in its downward movement, making it a favourable area for buyers to step in.
Moreover, the Relative Strength Index (RSI) on the daily chart has broken above its bearish trendline, a development that is considered bullish. The RSI is a momentum indicator, and its breakout from a downward trendline suggests a shift in momentum from bearish to bullish, increasing the likelihood of upward price movement. Given these technical factors, a long position is advised within the Rs 1,370-1,390 price range, targeting an upside of Rs 1,470. To manage risk, a stop-loss should be set near Rs 1,335 on a daily closing basis.
Strategy: Buy
Target: Rs 1,470
Stop-Loss: Rs 1,335
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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