After a day of recovery following consolidation, the market reported a healthy rally on July 12, with the BSE Sensex closing above 80,500 and the Nifty 50 above 24,500 for the first time, with 0.8 percent gains. However, 1,413 shares declined, and 923 shares advanced on the NSE. The Nifty 50 needs to sustain 24,500 for a further upward journey towards the 24,800 level, with immediate support placed at 24,400. Here are some trading ideas for the near term:
Nandish Shah, Senior Technical/Derivative Analyst at HDFC Securities
Hindustan Oil Exploration Company | CMP: Rs 232.2
Hindustan Oil Exploration Company has broken out on the weekly chart, closing at its highest level since August 18, 2023. The short-term trend of the stock remains positive as it is placed above its 11 and 20-day EMA (Exponential Moving Average). Momentum indicators and oscillators like the MFI (Money Flow Index) and RSI (Relative Strength Index) are sloping upwards and placed above 60 on the daily and weekly charts, suggesting strength in the current bullish trend.
Strategy: Buy
Target: Rs 250, Rs 265
Stop-Loss: Rs 215
Power Mech Projects | CMP: Rs 5,785
Power Mech Projects has broken out on the weekly chart to close at all-time high levels. The price rise is accompanied by a surge in volumes, suggesting strength in the uptrend. On the daily chart, the stock price has broken out from the upward sloping trendline, adjoining the highs of February 7 and April 25, 2024. Momentum indicators and oscillators are suggesting strength in the stock.
Strategy: Buy
Target: Rs 6,135, Rs 6,400
Stop-Loss: Rs 5,500
IFCI | CMP: Rs 69.57
IFCI has broken out on the daily and weekly charts from the consolidation of the last eight weeks to close at its highest levels since 2010. The price rise is accompanied by a surge in volumes, suggesting strength in the uptrend. Momentum indicators and oscillators like the MFI and RSI are sloping upwards and placed above 60 on the daily and weekly charts, suggesting strength in the current bullish trend.
Strategy: Buy
Target: Rs 75, Rs 78
Stop-Loss: Rs 64
Rajesh Bhosale, Technical Analyst at Angel One
Triveni Engineering and Industries | CMP: Rs 426
During early June, Triveni Engineering surged notably from Rs 300 to Rs 400. However, following this spike, prices entered a consolidation phase attributed to overbought conditions. After consolidating for a month, prices resumed their upward trajectory, breaking above the upper range of consolidation, which also aligned with the October 2023 high. Volume analysis reveals significant activity during upward movements, contrasting with lower volumes during declines, suggesting accumulation in this stock. Furthermore, prices are comfortably above important moving averages, with any declines finding support around the 20-day EMA, highlighting a strong uptrend. Hence, we recommend buying Triveni Engineering around Rs 426 - Rs 422.
Strategy: Buy
Target: Rs 475
Stop-Loss: Rs 401
Dalmia Bharat | CMP: Rs 1,933.60
Dalmia Bharat has established a solid foundation around the 200 SMA (Simple Moving Average) on the weekly chart, displaying robust signs of a positive reversal. On the daily chart, prices have confirmed a breakout from a Cup and Handle pattern, supported by substantial trading volumes and bullish candlestick formations. Moreover, prices have surpassed the key 89 EMA, which previously posed significant resistance. Additionally, the momentum indicator RSI is comfortably trading in the positive zone, reinforcing a bullish outlook. Hence, we recommend buying Dalmia Bharat around Rs 1,934 - Rs 1,924.
Strategy: Buy
Target: Rs 2,078
Stop-Loss: Rs 1,848 |
Inox Wind | CMP: Rs 171.75
Inox Wind has maintained a robust uptrend, forming higher highs and higher lows, although it consolidated within a range over the past couple of months. Recently, on the daily chart, prices have broken out of this consolidation, resuming their upward movement. They have achieved their highest closing level ever and entered uncharted territory. Additionally, a bullish signal has emerged as the 20-day EMA has crossed above the 50-day EMA. Hence, we recommend buying Inox Wind around Rs 172 - Rs 170.
Strategy: Buy
Target: Rs 200
Stop-Loss: Rs 157
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
ITC | CMP: Rs 459
Since February 2024, ITC has been consolidating within Rs 445-400 levels, representing strong consolidation and accumulation. However, with 6 percent weekly gains, the stock has decisively broken out of this consolidation on a closing basis. This breakout is accompanied by huge volumes, indicating increased participation. The stock is well placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, which reaffirms the bullish trend. The daily and weekly "Bollinger band" buy signal suggests increased momentum. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which justifies rising strength across all the time frames. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 478, Rs 490
Stop-Loss: Rs 450, Rs 445
Ircon International | CMP: Rs 336.8
Ircon International is in a strong uptrend across all the time frames, forming a series of higher tops and bottoms indicating a positive bias. It has also decisively broken out past a 6-8 months "multiple resistance zone" around Rs 285-300 levels, indicating a strong comeback of bulls. Huge rising volumes signify increased participation. The weekly "Bollinger band" buy signal suggests increased momentum. The stock is placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, which reaffirms the bullish trend. The daily, weekly, and monthly strength indicator RSI is in positive terrain, which justifies rising strength across all the time frames. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 356, Rs 375
Stop-Loss: Rs 313, Rs 300
Dr Lal PathLabs | CMP: Rs 2,950.85
Since January 2022, Dr. Lal PathLabs has been consolidating within a broad trading range (Rs 2,860-1,800); however, on the weekly time frame, the stock has confirmed a trend reversal, forming a series of higher tops and bottoms indicating a positive bias. The stock is placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, which reaffirms the bullish trend. On the monthly time frame, an "Inverse Head & Shoulder" pattern confirmation signifies bullish sentiments. Investors should buy, hold, and accumulate this stock.
Strategy: Buy
Target: Rs 3,200, Rs 3,380
Stop-Loss: Rs 2,840, Rs 2,790
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Hikal | CMP: Rs 360.45
Between March 2023 and June 2024, Hikal has been consolidating within the approximate range of Rs 260-320. Recently, the stock broke out of this range with significant trading volume, making it an attractive buy opportunity. Despite a rally of nearly 40 rupees post-breakout, it is recommended to purchase on any dips. From a technical standpoint, the daily MACD (moving average convergence divergence) has formed a bullish crossover just above the zero line, indicating a positive trend. Therefore, it is advisable to buy within the Rs 335-350 range, aiming for an upside target of Rs 425. To mitigate risk, a stop-loss should be set at Rs 315 on a daily closing basis.
Strategy: Buy
Target: Rs 425
Stop-Loss: Rs 315
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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