The market snapped a four-day winning streak and erased all its previous day's gains on July 19, with the Nifty 50 down 270 points or 1 percent at 24,531 amid caution ahead of the Union Budget next week. About 1,984 shares declined against 353 rising shares on the NSE. Experts see a sharp correction if the index decisively closes below 24,500, with 24,000 acting as a crucial support and 24,900 as a hurdle on the higher side. Here are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
ITC | CMP: Rs 474.55
On the weekly time frame, ITC confirmed a "downsloping trendline" breakout at the Rs 462 level, indicating a trend reversal. On the weekly chart, the stock has confirmed higher tops and bottoms formations, indicating a strong comeback of bulls. The stock is placed above its 20, 50, 100, and 200-day SMA (Simple Moving Average), and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily, weekly, and monthly strength indicator RSI (Relative Strength Index) is in positive terrain, which justifies rising strength across all the time frames. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 500-530, with a downside support zone of Rs 458-445 levels.
Strategy: Buy
Target: Rs 500, Rs 530
Stop-Loss: Rs 445
Orient Cement | CMP: Rs 325.55
Orient Cement is in a strong uptrend across all time frames, forming a series of higher tops and bottoms indicating a positive bias. It has also confirmed a "Pennant" continuation pattern, indicating bullish sentiments. Huge rising volumes at breakout zones signify increased participation. The stock is placed above its 20, 50, 100, and 200-day SMA, and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily, weekly, and monthly strength indicator RSI is in positive terrain, justifying rising strength across all time frames. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 355-375, with a downside support zone of Rs 303-293 levels.
Strategy: Buy
Target: Rs 355, Rs 375
Stop-Loss: Rs 293
SBI Life Insurance Company | CMP: Rs 1,647.7
SBI Life is in a strong uptrend, forming a series of higher tops and bottoms. On the weekly time frame, the stock has confirmed a "rounding bottom formation" at Rs 1,570 levels on a closing basis, indicating the resumption of the prior uptrend. Huge rising volumes signify increased participation. The daily and weekly strength indicator RSI has turned bullish, showing rising strength. The weekly and monthly "Bollinger band" buy signal signifies increased momentum. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 1,730-1,800, with a downside support zone of Rs 1,600-1,565 levels
Strategy: Buy
Target: Rs 1,730, Rs 1,800
Stop-Loss: Rs 1,565
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Avenue Supermarts | CMP: Rs 5,010.7
DMart witnessed a substantial increase in price in the last couple of trading sessions from the 21 DEMA (Exponential Moving Average) on the daily chart. Additionally, the counter witnessed an ‘ascending triangle’ breakout, construing a positive development. From a technical standpoint, the counter has gained significant traction in terms of volumes lately, which is likely to augur well from a short to medium-term outlook. On the oscillator front, the MACD (Moving Average Convergence Divergence) signals a continuation move, suggesting a potential upside journey in a comparable period. Hence, we recommend buying DMart around Rs 5,000-4,960.
Strategy: Buy
Target: Rs 5,350, Rs 5,400
Stop-Loss: Rs 4,790
Hindustan Unilever | CMP: Rs 2,727
Hindustan Unilever witnessed a decisive multi-week breakout in the last trading week, soaring nearly 4 percent. The counter has witnessed very strong traction in the last couple of trading weeks and seems poised to continue its northward move in the comparable period. Additionally, the recent gains have been backed by a notable increase in trading volumes, adding a bullish quotient to its undertone. On the oscillator front, MACD signals a continuation move, suggesting a potential upside journey for the counter. Hence, we recommend buying Hindustan Unilever on dips of Rs 2,700-2,680.
Strategy: Buy
Target: Rs 2,950, Rs 3,000
Stop-Loss: Rs 2,550
Life Insurance Corporation of India | CMP: Rs 1,108.25
LIC witnessed a substantial increase in price in the last couple of trading sessions to breach its previous swing high on the daily chart. Additionally, the counter witnessed strong traction in terms of trading volumes and has also witnessed a range breakout on the weekly time frame chart. On the oscillator front, most of the indicators are strongly aligned with the momentum, adding a bullish quotient and suggesting a potential upside journey in a comparable period. Hence, we recommend buying LIC around Rs 1,100-1,080.
Strategy: Buy
Target: Rs 1,280
Stop-Loss: Rs 988
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Aether Industries | CMP: Rs 881.1
Recently, Aether has been in a corrective phase after breaking out from Rs 860 level with significant volume. Notably, the recent correction has occurred with very low volume, suggesting that bearish pressure is weakening near the Rs 860 support level. This level, previously a resistance, has now turned into support. Considering these factors, investors might consider buying Aether shares within the Rs 860-880 range, anticipating a potential price increase to a target of Rs 970. To manage risk effectively, it is advisable to set a stop-loss order around Rs 820 based on daily closing prices, protecting against potential downside movements.
Strategy: Buy
Target: Rs 970
Stop-Loss: Rs 820
Vinay Rajani, Senior Technical/Derivative Analyst at HDFC Securities
Tata Power July Futures | CMP: Rs 413.90
Tata Power has broken down from the last four weeks’ narrow consolidation. It has gone down with a jump in volumes, which confirms the downtrend. It has also breached 50-day EMA support. Indicators and oscillators have turned bearish on the daily chart.
Strategy: Sell
Target: Rs 390, Rs 375
Stop-Loss: Rs 430
L&T Finance July Futures | CMP: Rs 175.7
L&T Finance has broken down from the bearish Head and Shoulder pattern neckline on the daily chart. The stock has confirmed lower tops and lower bottoms on the daily chart. Indicators and oscillators have turned bearish on the daily chart. It has closed below 20 DMA support.
Strategy: Sell
Target: Rs 167, Rs 162
Stop-Loss: Rs 182
Polycab India July Futures | CMP: Rs 6,336.35
Polycab India has violated crucial support of Rs 6,311, derived from the previous swing low on the daily chart. It has also violated the 50 DEMA support. There was a short build-up in the Polycab July Futures on July 19, which further confirms the downtrend. Indicators and oscillators have turned bearish on the daily chart.
Strategy: Sell
Target: Rs 6,000, Rs 5,840
Stop-Loss: Rs 6,500
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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