The benchmark indices remained under pressure for the second consecutive session, with the Nifty 50 down 0.3 percent on August 7. Bears maintained dominance in market breadth, with about 1,988 shares declining compared to 697 advancing on the NSE. The bearish sentiment is expected to prevail, given the weakness in technical indicators. Below are some short-term trading ideas to consider:
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking
InterGlobe Aviation (IndiGo) | CMP: Rs 5,893.5
InterGlobe Aviation remains in a strong uptrend, consistently taking support at its 50-DMA (currently at Rs 5,681) and along its rising trendline. It is on the verge of a breakout from a falling channel pattern, and a successful breakout could trigger a fresh rally towards new all-time highs. We expect the stock to surpass resistance and head towards the Rs 6,300 level in the near term.
Strategy: Buy
Target: Rs 6,300
Stop-Loss: Rs 5,680
Asian Paints | CMP: Rs 2,491.2
Asian Paints is forming a strong base and is on the verge of a multi-month breakout above the Rs 2,530 level. It is trading comfortably above all key short-term and long-term moving averages. Additionally, momentum indicators and oscillators on the daily chart have confirmed a bullish crossover. Based on this setup, we anticipate the stock to move towards the gap area near Rs 2,700 in the near term.
Strategy: Buy
Target: Rs 2,700
Stop-Loss: Rs 2,390
Sun Pharmaceutical Industries | CMP: Rs 1,595.2
Sun Pharmaceutical has broken down from a symmetrical triangle pattern on the daily chart, signaling potential downside. Additionally, the MACD has triggered a sell crossover, reinforcing the bearish outlook. It is currently trading well below all key short-term and long-term moving averages. Given these factors, further weakness is likely in the near term, and a sell-on-rise approach is advisable.
Strategy: Sell
Target: Rs 1,500
Stop-Loss: Rs 1,649
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
Waaree Energies | CMP: Rs 3,218.4
Waaree Energies has recently found strong support near its 50-day EMA, which acted as a springboard for a fresh upward move. Following this rebound, the price action has been gradually inching higher and is now approaching a critical juncture — a potential breakout above a downward-sloping trendline on the daily chart. Notably, Wednesday’s trading session witnessed volume activity that surpassed the 50-day average, indicating early signs of accumulation. This surge in participation suggests that market participants may be positioning themselves ahead of a possible breakout, adding conviction to the bullish setup.
From a trend perspective, the stock is trading above both its short-term and long-term moving averages, which are aligned in a bullish sequence and trending upward — a classic sign of strength and trend continuation. This confluence of price, volume, and momentum indicators points toward a constructive technical structure, with the potential for a breakout-led rally in the near term. Hence, we recommend buying this stock above the breakout level of Rs 3,270.
Strategy: Buy
Target: Rs 3,520
Stop-Loss: Rs 3,140
Jindal Stainless | CMP: Rs 734
Jindal Stainless has recently witnessed a breakout from a downward-sloping trendline on the daily chart, signalling a potential continuation of its upward trajectory. Post-breakout, the price has been gradually trending higher, supported by relatively higher volumes — a classic indication of sustained buying interest and accumulation. Currently, the stock is trading above its key moving averages, which reinforces the bullish undertone. Momentum indicators are also aligning with the bullish narrative. The RSI is firmly positioned in the bullish zone and continues to rise, reflecting improving price strength.
Meanwhile, the MACD remains in positive territory, quoting above both its signal line and the zero line. The MACD histogram is expanding, suggesting a pickup in upside momentum and further validating the breakout. Overall, the confluence of price action, volume behaviour, and momentum indicators points to a strong technical setup, with potential for continued upward movement in the sessions ahead. Hence, we recommend accumulating the stock in the Rs 730–740 range.
Strategy: Buy
Target: Rs 800
Stop-Loss: Rs 700
Rupak De, Senior Technical Analyst at LKP Securities
CSB Bank | CMP: Rs 435.2
CSB Bank has recently given a strong closing above its key resistance zone of Rs 420, supported by a bullish RSI crossover, indicating strengthening momentum. The major trend remains positive, with a structure of higher highs and higher lows on the daily chart and a steady rally visible on the weekly chart. It is also sustaining above its 20-day EMA, reinforcing the bullish sentiment. With a favourable risk-reward setup, the stock can be considered for buying at Rs 434.
Strategy: Buy
Target: Rs 465
Stop-Loss: Rs 417
Bajaj Finance | CMP: Rs 876.65
Bajaj Finance has given a consolidation breakdown on the daily chart, indicating a shift towards weakness. It is trading below its crucial 20-day and 50-day EMAs, reflecting sustained selling pressure. On Wednesday, the stock faced rejection near its 100-day EMA, placed at Rs 893, further reinforcing the bearish sentiment. Additionally, the RSI remains in a bearish crossover, suggesting weak momentum. Based on these technical signals, the stock is expected to drift lower and test its 200-day EMA, placed around the Rs 845 level, in the near term. We recommend selling August Futures in the Rs 883–880 range.
Strategy: Sell
Target: Rs 864
Stop-Loss: Rs 896
Mazagon Dock Shipbuilders | CMP: Rs 2,764.5
Mazagon Dock Shipbuilders witnessed a sharp downward move on the daily chart after breaking its key support level of Rs 3,104, signaling strong bearish momentum. During a pullback, it faced resistance near the 20-day EMA and closed with a bearish engulfing pattern, reinforcing the negative sentiment. These technical indicators suggest the stock may head toward its 200-day EMA. Traders can consider initiating a sell position (August Futures) in the Rs 2,760–2,780 range.
Strategy: Sell
Target: Rs 2,660
Stop-Loss: Rs 2,825
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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