The benchmark indices snapped an eight-day losing streak and recorded a nearly one percent rally on October 1, with healthy market breadth. A total of 2,011 shares saw buying interest compared to 796 shares that declined on the NSE. The market needs to surpass short- and medium-term moving averages for a persistent uptrend. Below are some short-term trading ideas to consider:
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking
L&T Finance | CMP: Rs 258.6
L&T Finance has been in a strong secular uptrend, consistently forming higher tops and higher bottoms. It is currently trading well above all its key short-term and long-term moving averages, indicating sustained bullish momentum. Moreover, the MACD has generated a bullish crossover above the zero line, further strengthening the positive sentiment. Given this technical setup, we expect the upward momentum to continue, with a potential move towards the Rs 285 level, while support is seen around Rs 245.
Strategy: Buy
Target: Rs 285
Stop-Loss: Rs 245
Bank of India | CMP: 124.63
Bank of India has broken out of a falling trendline on the weekly chart, accompanied by higher-than-average volumes, suggesting strong buying interest. On the derivatives front, the addition of fresh long positions further reinforces the bullish outlook. The RSI has crossed above the 60 level, indicating strengthening momentum. Based on this setup, a conservative upside target is projected around the Rs 140 level, while immediate support is placed at Rs 116.
Strategy: Buy
Target: Rs 116
Stop-Loss: Rs 140
Vatsal Bhuva, Technical Analyst at LKP Securities
Hindustan Zinc | CMP: Rs 481.35
Hindustan Zinc has shown multiple breaks in its recent technical chart development, signaling strong buying interest. After a brief phase of consolidation, it has once again given a breakout, moving decisively above its strong resistance levels or supply zone, which highlights robust bullish strength. The sustained move beyond these levels reflects improved market sentiment and growing participation. Additionally, the RSI is placed at 64, confirming healthy momentum and supporting the continuation of the uptrend, suggesting that the stock may witness further upside in the near term.
Strategy: Buy
Target: Rs 520
Stop-Loss: Rs 462
Laurus Labs | CMP: Rs 872
Laurus Labs was initially trading in an uptrend before a news-driven breakdown disrupted the momentum. However, follow-up moves suggest recovery, as a Morning Star candlestick pattern has formed near the 50-day EMA support, alongside a hidden bullish divergence on the weekly chart, indicating a possible continuation of the uptrend. Technically, the setup remains favourable, and the stock looks attractive for fresh buying opportunities once it sustains above its 20-day EMA, currently placed at Rs 879, which could trigger further upside momentum.
Strategy: Buy
Target: Rs 930
Stop-Loss: Rs 850
Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities
FSN E-Commerce Ventures | CMP: Rs 241.26
Nykaa delivered a strong rebound after finding support at its 50-day EMA zone of Rs 228–230. This bounce also came off from the lower Bollinger Band, placed around the same level, highlighting a confluence of technical supports. With Wednesday’s move, the stock managed to close above the midline of the Bollinger Band, a constructive sign that points towards strengthening near-term sentiment.
Momentum indicators are tilting positive. The RSI has climbed to 58, inching towards the 60 level, which signals growing buying strength. At the same time, the DI+ line has crossed above the DI- line in the ADX indicator, an early indication of a potential trend reversal in favour of the bulls.
Overall, Nykaa’s rebound from critical moving average and Bollinger support zones, coupled with improving momentum signals, sets the stage for a possible continuation of the upmove in the near term. Hence, we recommend accumulating the stock in the zone of Rs 240–242.
Strategy: Buy
Target: Rs 260
Stop-Loss: Rs 233
Axis Bank | CMP: Rs 1,159.5
Axis Bank staged a sharp rebound after taking support around the 20-day EMA zone of Rs 1,120–1,125. The stock has regained momentum and closed well above its cluster of key moving averages, reaffirming underlying strength. The stock is also holding above the midline of the Bollinger Bands, a constructive sign that supports continuation of the uptrend.
Momentum indicators are also supportive. The RSI has risen to 65, indicating healthy buying strength without being overbought. The ADX reading of 39, with DI+ above DI-, signals a strong and established bullish trend. Further, the MACD is trading above the signal line, reinforcing positive momentum.
On a relative basis, the Nifty Private Bank/Nifty ratio chart has broken above the upper Bollinger Band and closed higher, underlining strong relative outperformance of private banks. If this trend continues, Axis Bank is well placed to be a key beneficiary. Hence, we recommend accumulating the stock in the zone of Rs 1,155–1,145.
Strategy: Buy
Target: Rs 1,230
Stop-Loss: Rs 1,110
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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