Equity benchmarks continued to advance for the fourth straight session, rising half a percent on October 20, with improved market breadth. A total of 1,641 shares gained, compared to 1,211 declining shares on the NSE. Market sentiment is likely to remain favourable for bulls on the Muhurat trading day. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Tata Power Company | CMP: Rs 399.8
Tata Power has been witnessing strong consolidation above the 200 EMA and 200 SMA, indicating firm support and base building at lower levels. Recently, the stock has confirmed a trendline breakout, supported by a MACD bullish crossover just above the zero line, signalling strengthening momentum.
This confluence of technical signals points towards a potential continuation of the uptrend. Traders may consider entering long positions in the Rs 400–395 zone.
Strategy: Buy
Target: Rs 438
Stop-Loss: Rs 375
Bharat Dynamics | CMP: Rs 1,534.6
BDL has shown strong base creation near the 200 EMA and 200 SMA, indicating a solid demand zone and long-term support. A trendline breakout has recently been confirmed, accompanied by a surge in volume, reflecting renewed bullish participation.
On the momentum front, the RSI is also breaking out from its trendline, further strengthening the bullish outlook. This confluence of signals suggests the stock may be gearing up for an upward move. Traders may consider entering long positions in the Rs 1,550–1,500 zone.
Strategy: Buy
Target: Rs 1,725
Stop-Loss: Rs 1,410
ITC | CMP: Rs 413.05
ITC has formed a strong base near Rs 400, a crucial support zone that aligns with the 200-period EMA and a trendline support, indicating solid demand at lower levels.
On the momentum front, the ROC (25-period) is showing bullish divergence, signalling a potential shift from consolidation to upside momentum. This confluence of price structure and momentum signals strengthens the bullish outlook.
Sustaining above this zone could attract fresh buying interest, making it a low-risk accumulation opportunity for traders and investors aiming to ride the next leg of the up move. Traders may consider entering long positions in the Rs 415–410 zone.
Strategy: Buy
Target: Rs 440
Stop-Loss: Rs 395
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Tata Consumer Products | CMP: Rs 1,176.4
Tata Consumer has taken out its crucial swing resistance zone of Rs 1,150, and with that, the stock has also witnessed long build-up, which is a positive sign in the short to medium term. It is a significant breakout, hence a good upside cannot be ruled out.
The stock has witnessed good Put additions at the lower levels, which will act as a support. It is trading above its maximum pain level of Rs 1,150 as well as above its 20-day VWAP (Volume Weighted Average Price) of Rs 1,134, so these levels will act as support in the near term. Buy Tata Consumer in the range of Rs 1,170–1,190.
Strategy: Buy
Target: Rs 1,275, Rs 1,325
Stop-Loss: Rs 1,135
State Bank of India | CMP: Rs 907.5
SBI has provided a breakout above Rs 900, forming a lifetime high. The stock is trading well above its maximum pain level of Rs 885 as well as its 20-day VWAP of Rs 875, which is a positive sign in the near term.
There were significant Put additions at lower levels, mainly at the Rs 880 to Rs 900 strikes, along with Call unwinding, due to which the PCR (Put-Call Ratio) has jumped to 0.74, indicating bullishness in the near term. Buy SBI in the range of Rs 900–910.
Strategy: Buy
Target: Rs 960, Rs 980
Stop-Loss: Rs 875
Union Bank of India | CMP: Rs 141.33
Union Bank has been consolidating in a narrow range; however, the stock has witnessed good long build-up, and the overall Nifty PSU Index has been in an uptrend in the near term — a positive sign from a trading to short-term investing perspective.
The Rs 140 strike has witnessed significant Call unwinding and Put additions, and the stock has managed to close above this level. Hence, there is a high chance of further uptrend in the near term. Buy Union Bank in the range of Rs 140–143.
Strategy: Buy
Target: Rs 150, Rs 155
Stop-Loss: Rs 136
Vidnyan S Sawant, Head of Research at GEPL Capital
JK Tyre and Industries | CMP: Rs 418.5
JK Tyre has been exhibiting strong structural developments on the weekly scale. After forming a solid base near the 61.8% Fibonacci retracement level of the prior upmove from Rs 91.93 to Rs 543.6, the stock has now registered a breakout from an Inverted Head & Shoulders bullish pattern.
This breakout is accompanied by a notable surge in volumes, surpassing the 20-day average, confirming strong buying interest. The weekly RSI, positioned at 67, indicates accelerating upward momentum and reinforces the bullish outlook.
Strategy: Buy
Target: Rs 489
Stop-Loss: Rs 392
Federal Bank | CMP: Rs 227.08
Federal Bank has been in a steady upward trend, oscillating within a rising channel where dips have consistently found support near the 52-week EMA.
The stock has now registered a breakout from a 61-week consolidation phase, supported by strong volume and a robust bullish candlestick — indicating renewed strength and readiness to extend its primary uptrend. The RSI, currently above 68, further confirms the continuation of bullish momentum.
Strategy: Buy
Target: Rs 261
Stop-Loss: Rs 215
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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