The benchmark indices nosedived sharply and closed with a 3 percent decline after recouping around 2 percent from the day's low, tracking tariff-led turmoil in global peers. The market breadth was dismal, with a total of 2,448 shares trapped in a bear market, compared to just 193 shares that outperformed. The trend is expected to remain favourable for bears, but some rebound can't be ruled out, considering the significant fall in the past few days. Below are some trading ideas for the near term:
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Kotak Mahindra Bank | CMP: Rs 2,037.85
Kotak Mahindra Bank has been one of the outperformers in the Nifty private sector banks, and the uptrend has been largely due to short covering. The stock has provided a breakout from a range lasting more than 3 years, which is quite significant. It is one of the few stocks in the current scenario trading near its all-time high levels, reflecting relative outperformance. Due to the heavy sell-off in the markets during the last trading session, the stock witnessed Put unwinding at almost all the strikes. However, it didn’t see much short addition from current levels; rather, the stock bounced back from lower levels.
Based on these observations, the probability of the stock holding onto the Rs 2,000 levels—its second-highest Put open interest—is quite high, at least on a closing basis. Below that, there is another critical support level at Rs 1,960. Therefore, the risk-reward is favourable on the long side. So, buy Kotak Mahindra Bank in the range of Rs 2,000 to Rs 2,040.
Strategy: Buy
Target: Rs 2,120, Rs 2,200
Stop-Loss: Rs 1,960
Bajaj Finance | CMP: Rs 8,568
Bajaj Finance has also witnessed a huge range breakout—a consolidation breakout lasting more than 3 years—and the short covering is still pending. Since the prices have fallen back to the level from where it broke upwards, there is a higher probability of short covering, as the stock has not seen a significant short build-up in the recent fall from the top.
While there was Put unwinding at most strikes, additions were seen at the Rs 8,400 strike. Hence, the range of Rs 8,500 to Rs 8,400 is very critical in the near term, while Rs 9,000 is an immediate hurdle, making it the first target due to the highest Call open interest. So, buy Bajaj Finance in the range of Rs 8,550 to Rs 8,650.
Strategy: Buy
Target: Rs 9,000, Rs 9,200
Stop-Loss: Rs 8,220
SRF | CMP: Rs 2,715.2
SRF has also outperformed the overall markets recently. There has been a breakout from a huge consolidation due to sharp short covering. Although some fresh short additions were seen in the recent fall, the prices have reversed from the breakout point, making the risk-reward favourable on the long side.
The Rs 2,700 strike Put has the highest open interest, while the Rs 3,000 strike Call has the highest open interest. So, the range to watch is Rs 2,700 to Rs 3,000, and since the stock is near the lower end of the range, the bulls have a favourable chance from hereon. Buy SRF in the range of Rs 2,700 to Rs 2,650.
Strategy: Buy
Target: Rs 2,900, Rs 3,000
Stop-Loss: Rs 2,550
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Zomato | CMP: Rs 209.63
Despite a sharp market-wide correction, Zomato outperformed, closing with only a marginal loss. The stock is forming multiple bottoms near the Rs 195 level, indicating strong support. Traders may consider entering long positions near Rs 205, with a stop-loss at Rs 195 and an upside target of Rs 225.
Strategy: Buy
Target: Rs 225
Stop-Loss: Rs 195
GMR Airports | CMP: Rs 82.22
Unlike most F&O stocks, GMR Airports ended with gains in an otherwise volatile market. The stock witnessed a breakout above Rs 80, followed by a sharp pullback, and has now resumed its upward move. This price action suggests renewed strength and presents a potential buying opportunity. Traders may consider entering long positions near Rs 80, with a stop-loss at Rs 76 and an upside target of Rs 88.
Strategy: Buy
Target: Rs 88
Stop-Loss: Rs 76
Anshul Jain, Head of Research at Lakshmishree Investments
Chambal Fertilizers and Chemicals | CMP: Rs 612.8
Chambal Fertilizers, after breaking out of a rectangle pattern at Rs 546, offered no buying dips—until today. The stock has now smartly defended its 10–20 day moving average zone, giving short-term traders a golden entry into the momentum. Today’s bullish candle hints at renewed buying interest, supported by the cooling off of previously overheated momentum indicators. With the trend intact and structure strong, Chambal Fertilizers looks poised to clock fresh all-time highs in the coming sessions. Traders should watch for continued strength above support to ride the next leg up.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 580
PNB Housing Finance | CMP: Rs 923.65
PNB Housing Finance has defended its rounding bottom breakout impressively, even amid a falling market, with volumes consistently above the 50-day average, signaling strong institutional accumulation. For the bullish momentum to persist, the stock must hold above Rs 940. A sustained move above this level will likely lead to an initial target of Rs 1,050. The volume profile throughout the entire pattern reflects accumulation by strong hands, suggesting confidence in the stock’s long-term potential and positioning it as a frontrunner once market sentiment improves.
Strategy: Buy
Target: Rs 1,050
Stop-Loss: Rs 880
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
