The benchmark indices continued to see ranged trading for another session, with the Nifty 50 falling by just 12 points after its 235-point range on February 19. The market breadth improved after several days of weakness, as about 2,005 shares advanced compared to 604 declining shares on the NSE. The market is expected to gain strength soon amid ongoing range-bound trading. Below are some trading ideas for the near term:
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
UPL | CMP: Rs 650
UPL has been trading in an upward-sloping channel. During the recent correction, the stock took support at the lower end of the rising channel and has started the next leg of the upmove. On the upside, we expect the rally to continue towards Rs 680 – Rs 700.
Strategy: Buy
Target: Rs 680, Rs 700
Stop-Loss: Rs 635
Divis Laboratories | CMP: Rs 5,934.9
Divis Laboratories has been consolidating and has witnessed buying interest from the 61.82% Fibonacci retracement level of the previous rally. The hourly momentum indicator has reached the equilibrium line, suggesting that the correction is near completion and the next leg of the upmove can begin.
Strategy: Buy
Target: Rs 6,155, Rs 6,285
Stop-Loss: Rs 5,740
Sudeep Shah, Deputy Vice President and Head of Technical and Derivative Research at SBI Securities
BSE | CMP: Rs 5,631
BSE has taken support near its prior swing low, which coincides with the 20-week EMA (Exponential Moving Average) level. Thereafter, it witnessed a strong rebound. The reversal from the support zone is confirmed by the above 50-day average volume. Additionally, the stock surged above its 20 and 50-day EMA levels on Wednesday.
Most noteworthy, the stock started its upward journey in the month of July 2024. Since then, whenever the daily RSI (Relative Strength Index) came into the zone of 42-40, the stock has resumed its northward journey. This is a bullish sign according to RSI range shift rules. Hence, we recommend accumulating the stock in the zone of Rs 5,640-5,600.
Strategy: Buy
Target: Rs 6,000
Stop-Loss: Rs 5,450
Ashok Leyland has strongly outperformed the frontline indices over the past couple of trading sessions. Most noteworthy, the ratio chart of the stock compared to the Nifty Auto index has given a symmetrical triangle pattern. Furthermore, the ratio chart of the stock compared to the Nifty index is on the verge of breaking out of its consolidation phase. This clearly indicates strong outperformance.
Currently, the stock is marking a sequence of higher lows on a daily scale, along with robust volume, which indicates buying interest at lower levels. The stock is currently quoting above its short and long-term moving averages. The daily RSI is about to cross the 60 mark. Hence, we recommend accumulating the stock in the zone of Rs 226-224.
Strategy: Buy
Target: Rs 240
Stop-Loss: Rs 218
Vidnyan S Sawant, Head of Research at GEPL Capital
Zomato | CMP: Rs 234.1
Zomato remains in a strong uptrend, with dips finding buying interest near key moving averages. On the monthly scale, the stock has given a shallow retracement, indicating high relative strength compared to the broader market. The daily chart highlights a rebound from the double bottom pattern, reinforcing bullish momentum.
Strategy: Buy
Target: Rs 280
Stop-Loss: Rs 210
Kotak Mahindra Bank | CMP: Rs 1,985
Kotak Mahindra Bank has given a breakout on the weekly charts, confirming a strong upward trend. A breakaway gap was formed a few weeks ago with high volume, reinforcing the breakout. The stock is gaining strength, indicating a sustained bullish trend. The MACD (Moving Average Convergence Divergence) indicator has given a positive crossover and is rising above the zero line, signaling strong momentum. On the daily charts, the stock has given a breakout of an Inverted Head & Shoulder pattern, further supporting the bullish view.
Strategy: Buy
Target: Rs 2,255
Stop-Loss: Rs 1,860
Union Bank of India | CMP: Rs 114.92
Union Bank of India has maintained a rising trend since 2022, as observed on the monthly scale. On the weekly chart, the stock has corrected and retested the breakout level, forming a change in polarity near the Rs 100 level, which is a positive sign. Additionally, the RSI momentum indicator remains above 50 and is rising, reinforcing that the stock is gaining bullish momentum.
Strategy: Buy
Target: Rs 132
Stop-Loss: Rs 105
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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