The benchmark indices recorded nearly 2% gains on December 2, extending the upward trend for the second consecutive session on a broad-based rally. The market breadth remained positive, with about 1,624 shares advancing compared to 895 shares declining on the NSE. The market may see some consolidation after the sharp run-up in the past three days. Below are some trading ideas for the near term:
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Trent | CMP: Rs 7,321
Trent has broken out of a consolidation zone on the daily chart with a large-bodied candle, supporting the bullish sentiment. The MACD (Moving Average Convergence Divergence) indicator is trending upwards, confirming the upward movement.
Strategy: Buy
Target: Rs 7,800
Stop-Loss: Rs 7,090
Kalyan Jewellers India | CMP: Rs 787.9
Kalyan Jewellers has formed an Inverted Head and Shoulders pattern on the daily chart, accompanied by a surge in buying volumes. The RSI (Relative Strength Index) momentum indicator is positively placed, suggesting bullish implications.
Strategy: Buy
Target: Rs 830
Stop-Loss: Rs 768
Kotak Mahindra Bank | CMP: Rs 1,837.15
Kotak Mahindra Bank has given a trendline breakout with a massive bullish candlestick on the daily scale. It has also crossed above its key moving averages, confirming a trend change to bullish. The ADX (Average Directional Index) line is rising, confirming the strength of the trend.
Strategy: Buy
Target: Rs 1,885
Stop-Loss: Rs 1,780
Hardik Matalia, Derivative Analyst at Choice Broking
HCL Technologies | CMP: Rs 1,972.2
HCL Technologies is near its record-high levels, showcasing strong bullish momentum. The stock has been in a long-term uptrend, consistently forming higher highs and higher lows over the past few months. This trend reflects a structurally positive outlook, with the stock demonstrating resilience and sustained investor confidence. Recent consolidation in a narrow range indicates a pause, likely setting the stage for the next major directional move.
The stock is now on the verge of breaking out of its consolidation range, with the potential breakout supported by increasing trading volumes. A sustainable move above the Rs 2,000 level could signal a fresh upward leg, propelling the stock towards a target of Rs 2,175. This view is further supported by the RSI, currently at 63.17, trending upwards with a positive crossover, suggesting strengthening bullish momentum. Additionally, HCL Technologies has bounced back from its short-term and medium-term Exponential Moving Averages (EMAs), reinforcing the underlying positive trend.
Strategy: Buy
Target: Rs 2,175
Stop-Loss: Rs 1,875
ITC | CMP: 489
ITC is consolidating in a range following a throwback from higher levels. On the daily chart, the stock is forming a Rounding Bottom pattern, a bullish reversal setup that often precedes a significant upward move. The recent formation of a bullish candle on the daily chart suggests growing momentum, with the stock showing potential to break out of this pattern. This optimism is further supported by consistent trading volumes, indicating strong market participation.
A decisive breakout above the Rs 495 level could signal the next leg of the uptrend, with the stock likely to move toward the Rs 525 mark. The RSI at 65.43 is trending upwards, highlighting strengthening bullish momentum. Additionally, ITC has witnessed a reversal from a key support zone and has surpassed its short-term, medium-term, and long-term EMAs, reinforcing the positive outlook.
Strategy: Buy
Target: Rs 525
Stop-Loss: Rs 473
Granules India | CMP: Rs 608.6
Granules India is consolidating within a range near a crucial demand zone. Following a throwback from its record-high levels, the stock has found strong support in this zone, reflecting sustained buying interest. This consolidation phase indicates a pause in the prior trend, providing the stock with a base for potential upward momentum.
The stock is showing signs of breaking out of its current range, with a decisive move above Rs 615 likely to signal the continuation of its bullish trend. A successful breakout could propel Granules towards an upside target of Rs 685. The RSI is at 60.80 and trending upwards, pointing to strengthening bullish momentum. Furthermore, the stock has bounced off its long-term EMA levels and has surpassed its short-term and medium-term EMAs, reinforcing the positive outlook. Buying Granules at the current market price presents a favorable opportunity for bullish traders.
Strategy: Buy
Target: Rs 685
Stop-Loss: Rs 575
Drumil Vithlani, Technical Research Analyst at Bonanza
PB Fintech | CMP: Rs 2,203.25
On the daily time frame, PB Fintech has broken out of a Flag and Pole pattern, reaching an all-time high, signaling the continuation of its uptrend. The security has closed near its daily high, indicating strong buying interest. The price action is further supported by healthy volume. From a momentum perspective, the security is trading above all key EMAs, confirming the ongoing bullish trend. Additionally, the RSI is trending upwards, reflecting a positive outlook for the stock.
Strategy: Buy
Target: Rs 2,325
Stop-Loss: Rs 2,115
United Spirits | CMP: Rs 1,688.55
United Spirits has recently emerged from a rounding pattern on the daily chart, signaling a bullish trend with a high likelihood of further price appreciation. This breakout is supported by a significant increase in trading volume, reflecting robust buying interest and enhanced investor confidence. The position of the 21-day EMA above the 50-day EMA indicates sustained bullish momentum. Additionally, the upward trend in the RSI further supports the positive market sentiment, supporting the expectation of a continued uptrend.
Strategy: Buy
Target: Rs 1,780
Stop-Loss: Rs 1,625
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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