The benchmark indices remained moderately under pressure amid volatility for the second consecutive session on December 9, but the market breadth favoured the bulls. About 1,357 shares advanced, while 1,191 shares declined on the NSE. The consolidative phase is likely to continue in the market despite the overall positive trend. Below are some trading ideas for the near term:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Rail Vikas Nigam | CMP: Rs 470.55
RVNL has recently broken out of its Rs 435-450 consolidation zone and is now near Rs 470. Sustaining above the breakout level, alongside the RSI (Relative Strength Index) holding above 50 and aligning with the price action, adds strength. Traders are advised to go long above Rs 470, targeting an upside move toward Rs 525.
Strategy: Buy
Target: Rs 525
Stop-Loss: Rs 440
Devyani International | CMP: Rs 173.41
Devyani recently broke above its previous swing high of Rs 171.50 on the daily chart, following a triple bottom pattern with bullish divergence. This swing high aligns with the R3 camarilla pivot, reinforcing a bullish outlook. Traders are advised to buy above Rs 172, targeting an upside move toward Rs 190 in the coming sessions.
Strategy: Buy
Target: Rs 190
Stop-Loss: Rs 160
SBI Life Insurance Company | CMP: Rs 1,469.3
SBI Life has declined 28 percent over the past 2-3 months from its Rs 1,936 peak, but it has found support at the R3 camarilla tri-yearly pivot, which previously acted as resistance. This aligns with a long-standing bull trendline and daily bullish divergence. Traders can consider buying above Rs 1,465, targeting Rs 1,580, with a stop-loss at Rs 1,399 on a daily closing basis.
Strategy: Buy
Target: Rs 1,580
Stop-Loss: Rs 1,399
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Larsen & Toubro | CMP: Rs 3,947.3
L&T has provided a huge breakout from the sideways consolidation. The momentum indicator, MACD (Moving Average Convergence Divergence), has also provided a bullish crossover in the short-term as well as medium-term. The MACD is well into buy mode on both the daily and weekly charts.
The stock has seen long additions over the past couple of days, and the options data indicates Call unwinding in most of the Calls from the Rs 3,600 strike to Rs 3,900 strike. There has been some shifting in Calls from these strikes to Rs 3,900, Rs 3,950, and Rs 4,000 strikes. However, with this kind of a breakout, further long additions are likely in the futures segment, and the Call options may continue to unwind. Hence, the short-term outlook is positive.
Strategy: Buy
Target: Rs 4,060, Rs 4,140
Stop-Loss: Rs 3,884
Bharat Petroleum Corporation | CMP: Rs 303.45
Technically, BPCL seems to have completed a five-wave declining structure, and a retracement post the same appears to have started. The 38.2% retracement level is Rs 316, and the swing resistance is Rs 320. The immediate support is Rs 294, which is also the stop-loss for the long strategy. The momentum indicator MACD has also provided a bullish crossover in the short-term. From the derivatives data, the stock has seen some long built-up in the last few sessions after short covering from the middle of November.
The stock is trading well above its maximum pain and modified maximum pain level of Rs 300, which is an immediate support. There has been good addition on the Put side, while Call unwinding on the Rs 290 to Rs 305 strikes indicates a higher possibility of a bounce back.
Strategy: Buy
Target: Rs 316, Rs 320
Stop-Loss: Rs 294
Mphasis | CMP: Rs 3,104.6
Mphasis has been forming higher tops and higher bottoms on the daily charts, with a bullish crossover on the MACD. The stock had seen good short covering from the last week of November and has now witnessed some good long additions in the past few sessions. The highest Call open interest is at the Rs 3,100 strike, and the stock has managed to close above the same. It has also witnessed good Call unwinding at the lower levels, with some Put additions, indicating that the short-term outlook is positive.
Strategy: Buy
Target: Rs 3,210, Rs 3,300
Stop-Loss: Rs 3,040
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
Capacite Infraprojects | CMP: Rs 441.3
Capacite Infraprojects is showing strong bullish momentum with multiple positive technical indicators. A recent breakout from both a triangle and Flag pattern on the daily chart, accompanied by significant volume, suggests a potential uptrend. The price action is supported by its position above key moving averages, indicating strong underlying strength. The recent all-time high close above Rs 440 further solidifies this bullish sentiment. Momentum indicators are also aligned with the uptrend, suggesting that the positive momentum may continue. While the immediate resistance level is around Rs 460, a successful breach could propel the counter toward the Rs 490 level. However, if the momentum falters, the Rs 410 level may act as a strong support zone.
Strategy: Buy
Target: Rs 486
Stop-Loss: Rs 410
Vishnu Prakash R Punglia | CMP: Rs 333.65
Vishnu Prakash R Punglia is displaying a strong bullish trend, having recently broken out of a triangle pattern on a longer timeframe. This positive momentum is evident on the daily chart, where the price is trading above all key moving averages. Momentum indicators are also confirming this bullish trend, suggesting that the upward movement may continue. In the near term, the counter could aim for Rs 340, with the potential to extend further to Rs 370+. However, if the trend weakens, the Rs 307 level may act as a crucial support level.
Strategy: Buy
Target: Rs 374
Stop-Loss: Rs 307
Kalyan Jewellers India | CMP: Rs 775.5
Kalyan Jewellers has emerged from a prolonged period of consolidation, marked by significant trading volume. This breakout has occurred from an ascending triangle pattern, a classic bullish formation. The daily chart exhibits a strong bullish structure, with the immediate target set at Rs 850. However, the potential upside is even greater, with a possible extension to Rs 870. On the downside, Rs 720 is likely to act as a crucial support level. Technical indicators like the MACD and Relative Strength Index (RSI) are both signaling strong bullish momentum, further supporting the upward trend.
Strategy: Buy
Target: Rs 870
Stop-Loss: Rs 720
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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