The benchmark indices fell by more than 1 percent on November 12, reaching their lowest closing level since June 26, with market breadth favouring the bears. A total of 1,910 shares declined, compared to 563 advancing shares on the NSE. Nervousness is likely to persist on Dalal Street as indices traded below all short- to medium-term moving averages, which is a negative sign. Below are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Infosys | CMP: Rs 1,868.8
The IT sector continued to shine despite major indices falling, and Infosys outperformed. On the daily chart, Infosys bounced upwards after taking support at the lower Bollinger Bands. It has not closed below its previous day’s low since November 4, suggesting strength in the ongoing trend. In the previous session, the stock closed above the middle Bollinger Band, and follow-up buying could accelerate the positive momentum. The RSI (Relative Strength Index) is at 53, providing space for further upward movement. In summary, the current trend for Infosys is bullish. A break above Rs 1,882 could lift the stock towards Rs 1,940, followed by Rs 2,000, as long as Rs 1,820 holds as support on the downside.
Strategy: Buy
Target: Rs 1,940, Rs 2,000
Stop-Loss: Rs 1,820
JSW Energy | CMP: Rs 750
JSW Energy reversed from trendline support around November 5-6, and since then, the stock has not closed below its previous day’s low, gaining more than 17 percent. This reflects increasing bullishness. In the previous session, the stock closed above its swing high of Rs 740, and follow-up buying could extend this rise. The stock has also recently broken above the upper Bollinger Bands, keeping the tone bullish. In summary, the current trend for JSW Energy is positive. Use dips as a buying opportunity, with potential to reach Rs 780, followed by Rs 800, as long as Rs 720 remains protected on the downside.
Strategy: Buy
Target: Rs 780, Rs 800
Stop-Loss: Rs 720
Sasken Technologies | CMP: Rs 1,946.5
Sasken Technologies showed a sharp rally in the previous session, gaining 10 percent in a single day. The stock has formed a rounding bottom pattern. A close above Rs 1,950 could confirm the breakout of this pattern. On the daily chart, the stock recently bounced back from the base of the Ichimoku Cloud, which is a positive signal. In summary, the current trend for Sasken Technologies is positive. Use dips towards Rs 1,890-1,900 as a buying opportunity for a move towards Rs 2,000-2,060, as long as Rs 1,850 holds as support on the downside.
Strategy: Buy
Target: Rs 2,000, Rs 2,060
Stop-Loss: 1,850
Riyank Arora, Technical Analyst at Mehta Equities
Aarti Industries | CMP: Rs 445
Aarti Industries is trading at a significant support level, with the daily RSI at 29, signaling oversold conditions that increase the likelihood of a rebound. This level provides an ideal entry point, with a controlled stop-loss at Rs 425, balancing risk while targeting Rs 475. The stock’s technical setup and favourable risk-reward profile make it a strong candidate for gains as it approaches a potential bounce zone.
Strategy: Buy
Target: Rs 475
Stop-Loss: Rs 425
Waaree Energies | CMP: Rs 2,870
Waaree Energies has shown resilience, holding support at the trendline and anchored VWAP (Volume Weighted Average Price), indicating a strong technical foundation. Trading at Rs 2,870, this position offers an attractive risk-reward balance with a stop-loss at Rs 2,700. The setup is further bolstered by technical support and suggests an upside target of Rs 3,600. This configuration highlights the potential for a sustained uptrend continuation.
Strategy: Buy
Target: Rs 3,600
Stop-Loss: Rs 2,700
Jubilant FoodWorks | CMP: Rs 637
Jubilant FoodWorks has achieved an anchor VWAP breakout above the Rs 625 level, supported by a daily RSI of 61, reflecting strong momentum. Additionally, trading volume is approximately nine times the 10-day average, underscoring significant buying interest. This setup provides an appealing risk-reward ratio, with a stop-loss at Rs 610 and an upward target of Rs 700, indicating robust upside potential in the near term.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 610
L&T Technology Services | CMP: Rs 5,279
L&T Technology has broken out of a falling wedge pattern, which is a bullish signal supported by strong momentum indicators. The daily RSI at 55 suggests a positive momentum build-up, and trading volumes are nearly four times the 10-day average, highlighting increased market interest. The breakout at Rs 5,240, with a stop-loss at Rs 5,100, presents a favourable entry point, targeting Rs 5,600. The technical breakout and volume surge suggest continued bullish potential.
Strategy: Buy
Target: Rs 5,600
Stop-Loss: Rs 5,100
Dhupesh Dhameja, Derivatives & Technical Analyst at Samco Securities
Uno Minda | CMP: Rs 1,002.6
Uno Minda has achieved a strong breakout from its Double Bottom formation on the daily chart, coupled with a breach of a falling trendline. This confluence creates a bullish setup. High trading volume confirms the breakout, indicating a price-volume surge that has drawn significant buying interest. The stock has rebounded from a strong support area that previously sparked a significant rally, marking a reversal in its downtrend. Currently trading above the 200-day EMA (Exponential Moving Average), it has established a solid base at this level, reinforcing its positive momentum and upside potential. Traders may consider initiating long positions at the current market price (CMP) or down to Rs 970, with a stop-loss at Rs 915 and a target price of Rs 1,055.
Strategy: Buy
Target: Rs 1,055
Stop-Loss: Rs 915
Indian Hotels | CMP: Rs 730
Indian Hotels has achieved a notable breakout from its range, with a breakaway gap, establishing a bullish formation. The breakout is confirmed by high trading volumes, indicating a price-volume surge that has garnered strong attention. The stock is trading above the 20-day EMA, and the daily RSI reading above 60 further supports the momentum, underscoring the stock’s upside potential. Traders may consider initiating long positions at the CMP or down to Rs 720, with a stop-loss at Rs 678 and a target of Rs 785.
Strategy: Buy
Target: Rs 785
Stop-Loss: Rs 678
Ramco Cements | CMP: Rs 910
Ramco Cements has achieved a strong breakout from its 272-day base formation, with a breakaway gap, creating a bullish pattern. This breakout is reinforced by high trading volumes, signaling a price-volume surge that has attracted significant interest, especially as volumes were subdued during the base formation period, adding to its appeal. The stock is currently trading above the 20-day EMA, with the daily RSI reading above 60, supporting the stock's positive momentum and upside potential. Traders may consider initiating long positions at the CMP or down to Rs 898, with a stop-loss at Rs 850 and a target of Rs 975.
Strategy: Buy
Target: Rs 975
Stop-Loss: Rs 850
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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