The market extended losses for the second consecutive session, falling 1.35 percent on December 17 due to selling pressure across key sectors, with negative breadth. A total of 1,727 shares fell against 795 rising shares on the NSE. The benchmark indices may sustain the negative trend, with focus on the outcome of the two-day Federal Reserve policy meeting, which is due on December 18. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
Infosys | CMP: Rs 1,976.6
Infosys has shown a robust rally from the lower levels in recent sessions. Moreover, there is a fresh breakout along with decent volume from the ascending triangle chart formation on both the daily and weekly scale. As a result, the comfortable close above its breakout zone suggests that upward momentum is likely to persist in the coming sessions.
Strategy: Buy
Target: Rs 2,070
Stop-Loss: Rs 1,920
Sobha | CMP: Rs 1,620.2
Sobha is trading in a triangle chart formation on the daily scale, which clearly suggests that bullish momentum is likely to continue in the short term. In addition, the stock has formed a higher bottom formation on the daily chart, indicating strong support for a fresh breakout move from the current levels.
Strategy: Buy
Target: Rs 1,730
Stop-Loss: Rs 1,560
FSN E-Commerce Ventures | CMP: Rs 176.37
After its declining trend from the higher levels, Nykaa is in consolidation mode, trading in a rectangle formation. However, recent bullish activity near the demand zone indicates decent strength. The gradual upward movement in the stock suggests a fresh leg of the bullish trend in the near term.
Strategy: Buy
Target: Rs 190
Stop-Loss: Rs 170
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Prestige Estates Projects | CMP: Rs 1,854.4
On the daily chart, Prestige has been moving within a channel for more than six months. In the previous session, prices breached their resistance level, and a breakout could further intensify buying. Furthermore, prices have recently broken out of a narrow range between Rs 1,710 and Rs 1,780 and surged more than 6 percent in two trading sessions, suggesting increasing bullishness in the stock.
Additionally, the KST (Know Sure Thing) indicator is trading above its zero line, signaling that positive momentum is likely to continue in the stock. In summary, the current trend for Prestige is bullish. A break above Rs 1,880 is necessary for the buying momentum to continue, which could push prices higher towards Rs 1,950, followed by Rs 2,100, as long as Rs 1,800 holds as the downside support.
Strategy: Buy
Target: Rs 1,950, Rs 2,100
Stop-Loss: Rs 1,800
DOMS Industries | CMP: Rs 3,052
On the daily chart, DOMS Industries has protected its prior day's lows since December 5, which keeps the daily tone in favour of the bulls. In the previous session, prices bounced upward from the middle of the Bollinger Bands and gained 4.8 percent with a rise in volume, making a fresh high at Rs 3,115. This suggests intensified buying pressure in the stock. Also, the ADX (Average Directional Index) is trading at 25, suggesting that positive momentum will continue.
In summary, the current trend for DOMS is positive. A break above Rs 3,120 is essential for bullish momentum to continue, which could lift the price higher towards Rs 3,240, followed by Rs 3,370. On the downside, Rs 2,990 is the nearest support level to watch.
Strategy: Buy
Target: Rs 3,240, Rs 3,370
Stop-Loss: Rs 2,990
RPP Infra Projects | CMP: Rs 245
RPP Infra showed a sharp rally in the previous session with a 16.66 percent increase in a single trading day! The stock has formed a rounding bottom pattern. The price has closed above Rs 235, confirming a breakout of the pattern. On the daily chart, the ADX is suggesting strong momentum can continue, with readings of 47.13, which is above 25. For now, one should use a buy-on-dips approach to ride the trend. In summary, the trend for this stock is positive. Use dips towards Rs 240-242 as a buying opportunity for a move towards Rs 260-265, as long as Rs 235 holds as the downside support.
Strategy: Buy
Target: Rs 260, Rs 265
Stop-Loss: Rs 235
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities
Bajaj Holdings and Investments | CMP: Rs 11,270
Bajaj Holdings & Investments is displaying a bullish Cup and Handle formation on the daily chart, which typically signals a continuation in the prevailing uptrend. After a phase of consolidation, the breakout above the handle has been accompanied by rising volumes, adding credibility to the ongoing momentum. The stock is also trading comfortably above its 50-day simple moving average. The RSI (Relative Strength Index) is indicating sustained strength, as it currently holds above 60. If the stock manages to hold above Rs 11,350, it may extend the rally further. Hence, one can initiate a long position at the CMP (current market price).
Strategy: buy
Target: Rs 12,200
Stop-Loss: Rs 10,700
Radico Khaitan | CMP: Rs 2,455.3
Radico Khaitan has formed an ascending triangle pattern on its daily chart, indicating a bullish continuation. The stock recently broke above its prior resistance levels near Rs 2,400 and is now consolidating near its highs, reflecting the strengthening of the trend. The 50-day simple moving average, around Rs 2,380, is providing strong support. The RSI, currently at 62, is showing steady upward movement, confirming that momentum is favouring the bulls. Rising volumes and a healthy price structure further enhance the positive outlook. Hence, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 2,700
Stop-Loss: Rs 2,300
Mahindra Holidays and Resorts India | CMP: Rs 381.95
Mahindra Holidays & Resorts is exhibiting a clear Inverse Head and Shoulders pattern, which typically signals the end of a downward trend and the beginning of an upward one, supporting the stock's bullish reversal indicators. The resistance at the neckline is between the Rs 385 and Rs 390 levels. With rising volumes backing the move, the stock has been edging closer to this breakout zone. The RSI, trending upward around 56, indicates a gradual accumulation of strength, suggesting improving momentum. Hence, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 425
Stop-Loss: Rs 360
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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