The market remained directionless due to a lack of triggers since the start of the current week, closing flat on December 26. The market breadth favoured the bears, with 1,494 shares falling compared to 1,010 shares gaining on the NSE. The benchmark Nifty 50 needs to break the rangebound trade to establish a firm direction for the January series starting on December 27. Below are some trading ideas for the near term:
Chandan Taparia, Senior Vice President | Head – Technical Research and Derivatives at Motilal Oswal Financial Services
InterGlobe Aviation | CMP: Rs 4,725
InterGlobe has retraced from major support levels and moved upward, forming a large-bodied bullish candle on the daily chart. It has bounced from its key 200-day exponential moving average (DEMA), suggesting a potential trend reversal. The MACD (Moving Average Convergence Divergence) indicator has given a bullish crossover, supporting the upward momentum.
Strategy: Buy
Target: Rs 4,950
Stop-Loss: Rs 4,610
Sun Pharmaceutical Industries | CMP: Rs 1,841.35
Sun Pharmaceutical is giving an ascending triangle breakout with a surge in buying volumes on the daily chart. The RSI (Relative Strength Index) indicator has given a bullish crossover and is trending upward, confirming the upward momentum.
Strategy: Buy
Target: Rs 1,925
Stop-Loss: Rs 1,795
Hindustan Petroleum Corporation | CMP: Rs 419.3
HPCL has formed a Cup and Handle pattern on the daily chart and has moved upward after testing its 200-day exponential moving average (DEMA) support zone. The ADX (Average Directional Index) line is rising, suggesting that the upward movement has strength and is likely to continue.
Strategy: Buy
Target: Rs 454
Stop-Loss: Rs 399
Hardik Matalia, Derivative Analyst at Choice Broking
Himadri Speciality Chemical | CMP: Rs 565.8
HSCL has recently experienced a bullish breakout from an Inverted Head and Shoulders pattern on the daily chart, supported by significant trading volumes that confirm strong momentum. The stock has demonstrated resilience by rebounding from its demand zones, which act as crucial support levels. If HSCL sustains its position above Rs 580, it could potentially move toward an upward target of Rs 630.
The RSI stands at 57.94 and is trending upward with a positive crossover, indicating that the stock is not yet in overbought territory, supporting the continuation of the uptrend. Additionally, HSCL is trading above key moving averages, including the short-term (20-day) EMA, medium-term (50-day) EMA, and long-term (200-day) EMA, further reinforcing the bullish outlook. Given these technical indicators and strong price action, entering a long position in HSCL at Rs 565.8 appears promising.
Strategy: Buy
Target: Rs 630
Stop-Loss: Rs 535
Devyani International | CMP: Rs 182.88
Devyani is forming a rounding bottom pattern near a key support zone. The stock has been consolidating within a wide trading range following a slight correction near its demand zone. It is now poised for a breakout from the rounding bottom pattern, supported by a notable increase in trading volumes. The formation of a strong bullish candle on the daily chart further reinforces its positive outlook.
If Devyani sustains above the Rs 185 level, it could extend its upward momentum toward the next target of Rs 200. The RSI is currently at 66.81 and trending upward, indicating increasing buying strength. Additionally, the stock has moved above its key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, highlighting the strength of its underlying uptrend. In summary, given the favourable technical setup, buying Devyani at the current market price presents a compelling opportunity for potential gains.
Strategy: Buy
Target: Rs 200
Stop-Loss: Rs 172.5
Virat Jagad, Technical Research Analyst at Bonanza
Apollo Tyres | CMP: Rs 542.25
Apollo Tyres has recently broken out from a Flag and Pole pattern on the daily chart, a strong bullish indicator suggesting the potential for a sustained uptrend. The breakout is supported by a surge in trading volume, reflecting increased buying interest and reinforcing the stock's positive outlook. Additionally, the stock is trading above key EMAs, aligning with the ongoing bullish trend. The DMI+ (Directional Movement Index) is higher than the DMI-, and the ADX is above 25, suggesting strong upward momentum. Overall, these technical signals point to a bullish scenario, with potential for further price appreciation in the near term.
Strategy: Buy
Target: Rs 580
Stop-Loss: Rs 520
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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