The benchmark indices recorded a new closing high on July 9, with a higher top-higher bottom formation, although the breadth was neutral. About 1,176 shares advanced, while 1,168 shares declined on the NSE. The Nifty 50 closed above 24,400 for the first time. If it climbs and sustains above 24,500, then a further rally towards 24,800-25,000 seems likely, while the support is placed at 24,300. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
JBM Auto | CMP: Rs 2,286.7
JBM Auto showed decent buying in the previous session. On the chart, the 30-day Exponential Moving Average (EMA) has successfully supported rallies in the past, with dips towards this average acting as great buying opportunities as major lows have formed at this average. Prices recently bounced back on the upside by taking support from the upward sloping channel. It is gradually moving up towards the previous swing high near Rs 2,428 levels. In short, the trend for JBM Auto is positive. A break above Rs 2,340 can lift the price higher towards Rs 2,428 followed by Rs 2,520, as long as Rs 2,087 holds on the downside.
Strategy: Buy
Target: Rs 2,428, Rs 2,520
Stop-Loss: Rs 2,087
Phoenix Mills | CMP: Rs 4,025.65
In the previous session, Phoenix Mills closed with a huge gain of more than 7 percent. There has been a minor consolidation of 20 days, and in the previous session, prices have given a breakout. Follow-up buying is necessary for confirmed confirmation. The price retraced to its support at Rs 3,500 and moved up from it. Currently, the support level for the stock is Rs 3,805. The price has moved outside the upper bands, suggesting high volatility and potential trend continuation. The RSI (Relative Strength Index) is making higher lows and is currently trading at 75, signifying high momentum in the stock. In short, the trend for this stock is positive. One can use the buy on dips method with a target of Rs 4,190 as long as Rs 3,805 holds on the downside.
Strategy: Buy
Target: Rs 4,190
Stop-Loss: Rs 3,805
VLS Finance | CMP: Rs 324.65
VLS Finance has been moving higher recently and remains in a strong uptrend. In the previous session, it closed with a gain of 9.94 percent and formed a bullish candle. The price has closed above the Rs 323 level, confirming a breakout of the rounding bottom pattern. The ADX (Average Directional Index) indicator is currently showing a reading of 46.75, indicating a trending market. A reading above 25 means strong directional strength. In short, the trend for this stock is positive. Use dips towards Rs 318-321 as a buying opportunity for a move towards Rs 355-360 levels as long as Rs 308 holds on the downside.
Strategy: Buy
Target: Rs 355, Rs 360
Stop-Loss: Rs 308
Om Mehra, Technical Analyst at SAMCO Securities
Ceat | CMP: Rs 2,724.3
Ceat is forming a rounding bottom pattern, with the RSI showing positive momentum. A notable increase in trading volumes, coupled with rising prices, indicates strong bullish momentum. Additionally, the stock is trading above the 20-day and 50-day moving averages (DMA). Hence, based on the above technical structure, one can initiate a long position at CMP Rs 2,724.3 for a target price of Rs 2,950. The stop-loss can be kept at Rs 2,620.
Strategy: Buy
Target: Rs 2,950
Stop-Loss: Rs 2,620
Zomato | CMP: Rs 212.56
After breaking through the Rs 205-206 resistance level, Zomato is now turning that resistance level into a support zone. The stock is trading well above the 20-day moving averages (DMA), with above-average volumes. The daily RSI remains stable at 70 levels. Hence, based on the technical structure, one can initiate a long position at CMP Rs 212.10 for a target price of Rs 235. The stop-loss can be kept at Rs 198.
Strategy: Buy
Target: Rs 235
Stop-Loss: Rs 198
ICICI Prudential Life Insurance | CMP: Rs 646.50
ICICI Prudential Life is forming higher highs and higher lows, indicating a sustained uptrend. The stock is placed well above its short-term 20 (DMA) moving averages. The RSI comfortably holding at 70 levels is gradually inching higher, indicating strength in the stock. The Inverted Head and Shoulders pattern in the daily chart confirms a bullish setup. Hence, based on the technical structure, one can initiate a long position at CMP Rs 646.50 for a target price of Rs 700. The stop-loss can be kept at Rs 610.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 610
Riyank Arora, Technical Analyst at Mehta Equities
Sun Pharmaceutical Industries | CMP: Rs 1,585.4
Sun Pharma has surpassed its swing high resistance level of Rs 1,564 and closed above it. With the RSI (14) around 67 and trending upwards, along with a positive outlook for pharma stocks, we anticipate Sun Pharma to reach a potential target of Rs 1,625 and beyond. To manage risk, a stop-loss should be set at Rs 1,550.
Strategy: Buy
Target: Rs 1,625
Stop-Loss: Rs 1,550
Mahindra and Mahindra | CMP: Rs 2,925.5
Mahindra & Mahindra presents a compelling buying opportunity based on its current technical setup. With a stop-loss at Rs 2,900 and targets of Rs 2,975 and Rs 3,000, the stock is well-positioned for a short-term trade. The recent price action indicates a breakout, with the RSI above 60 signaling strong momentum, enhancing the bullish outlook and making it a suitable candidate for achieving the specified targets.
Strategy: Buy
Target: Rs 2,975, Rs 3,000
Stop-Loss: Rs 2,900
Alkem Laboratories | CMP: Rs 5,324
Alkem Laboratories presents a favourable buying opportunity given its current technical configuration. A stop-loss at Rs 5,250 is recommended, with a target of Rs 5,500. The stock has surpassed a resistance level around Rs 5,258.85, which now acts as support. The recent breakout, along with strong volume, reinforces a bullish perspective, making it an appealing option for a short-term trade for a Rs 5,500 target.
Strategy: Buy
Target: Rs 5,500
Stop-Loss: Rs 5,250
Ipca Laboratories | CMP: Rs 1,220.75
Ipca Laboratories has broken above its swing high resistance level of Rs 1,213.70 and successfully closed above it. With the RSI (14) around 59 and showing an uptick, the stock is likely to move towards potential targets of Rs 1,275.00 and beyond. To manage risk effectively, a stop-loss should be set at Rs 1,180.
Strategy: Buy
Target: Rs 1,275
Stop-Loss: Rs 1,180
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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