Trade Spotlight: How should you trade LIC, CDSL, SBI, Sun Pharma, Hindalco, Adani Green Energy, and others on April 22?

After peaking near Rs 1,222 in August 2024, LIC witnessed a sharp decline of nearly Rs 500, translating to a 42 percent correction. Recently, the stock has formed a classic Inverse Head and Shoulders pattern — a bullish reversal setup. The price has also successfully retested the neckline of the pattern and shown strength, indicating a potential trend reversal. Traders may consider entering long positions in the Rs 800–820 zone, with an upside target of Rs 900.

Strategy: Buy

Target: Rs 900

Stop-Loss: Rs 765

Clean Science and Technology | CMP: Rs 1,200.4

Clean Science has recently formed a textbook bullish Bat pattern on the daily chart, supported by rising volumes from the bottom, indicating strong buying interest. Interestingly, the Bat pattern’s reversal zone aligns with the S3 monthly Camarilla pivot, adding technical confluence. Moreover, an Inside Value relationship is observed between March and April pivots, where April’s R3 and S3 lie within March’s range. This setup often precedes a significant breakout, hinting at a potentially explosive move ahead. Traders may consider entering long positions in the Rs 1,185–1,200 zone.

Strategy: Buy

Target: Rs 1,320

Stop-Loss: Rs 1,140

Cello World | CMP: Rs 584.3

Cello World recently formed a double bottom with bullish divergence and broke above a falling trendline, signaling a potential reversal. Strong volume in the Rs 535–565 zone adds bullish confirmation. Both March and April 2025 Camarilla monthly pivots show an Inside Value relationship, where the current month’s pivot lies within the previous month’s range — often a precursor to an explosive move. Traders may consider long positions between Rs 580–585.

Strategy: Buy

Target: Rs 680

Stop-Loss: Rs 540

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Central Depository Services May Futures | CMP: Rs 1,311.6

CDSL has provided a breakout from a base formation, primarily due to short covering. The stock had witnessed its highest short build-up in recent times and is now seeing covering, along with its peers, as the entire Nifty Capital Market index has started to recover. In anticipation of further short covering, one can go long on CDSL in the range of Rs 1,280–1,260 in the short term.

Strategy: Buy

Target: Rs 1,340, Rs 1,360

Stop-Loss: Rs 1,220

State Bank of India May Futures | CMP: Rs 816.1

SBI has broken out of a base formation with clear short covering in the recent bounce back, leading the stock to break above the crucial resistance of Rs 800, which had a significant Call base. The stock has now seen clear upward momentum and Put additions at lower levels, which may support any dips. In the short term, all PSU banks are likely to witness an uptrend, and SBIN offers a good setup. Buy SBI May Futures in the range of Rs 820–800.

Strategy: Buy

Target: Rs 850, Rs 870

Stop-Loss: Rs 780

Sun Pharmaceutical Industries May Futures | CMP: Rs 1,746.2

Sun Pharmaceutical has seen long liquidation throughout its uptrend, and the cumulative open interest has now dropped to its lowest level in six years or more, indicating that derivatives positions are quite light. Prices are now providing positive divergence, increasing the chances of an uptrend. Sun Pharma has been one of the relative outperformers in the Nifty Pharma Index and is likely to inch towards the upper end of the range. Buy Sun Pharmaceutical May Futures in the range of Rs 1,760–1,740.

Strategy: Buy

Target: Rs 1,830, Rs 1,860

Stop-Loss: Rs 1,710

Anshul Jain, Head of Research at Lakshmishree Investments

Hindalco Industries | CMP: Rs 622

Hindalco has broken out of a bullish flag pattern on the daily chart, with a close above Rs 618 confirming the breakout. Although volumes were muted, large caps often see follow-up buying. Sustaining above Rs 618 is key for the bulls. The immediate upside target lies near the gap resistance zone of Rs 645–647. A strong close above this level can extend momentum. Until then, it remains a buy-on-dips candidate with defined levels.

Strategy: Buy

Target: Rs 645

Stop-Loss : Rs 610

SBI Cards and Payment Services | CMP: Rs 909.65

SBI Card has broken out of a 420-day-long bullish Cup and Handle pattern on the daily chart, with a breakout at Rs 890. While volumes were muted, price action remains strong, and follow-through buying may boost participation. The stock closed above the breakout point and continues to trade comfortably above resistance. A sustained move above Rs 890 could lead to an initial upside target of Rs 1,000. Traders can look to ride the breakout with a tight stop-loss below Rs 890.

Strategy: Buy

Target: Rs 1,000

Stop-Loss: Rs 890

Adani Green Energy | CMP: Rs 956.25

Adani Green Energy is nearing a bullish breakout from a 47-day-long down-slanting Cup and Handle pattern, with the neckline placed at Rs 960. The volume pattern is constructive, indicating strong accumulation. A breakout and sustained move above Rs 960 could trigger a sharp rally, initially targeting the swing high of Rs 1,025. If momentum continues, the breakout structure suggests a further upside towards Rs 1,127. Traders should watch for confirmation above Rs 960 to ride the breakout with strength.

Strategy: Buy

Target: Rs 1,025

Stop-Loss: 930

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