The benchmark indices remained under pressure amid volatility for three consecutive days, with the Nifty 50 falling by 0.2% on February 7. The market breadth was weak, with 1,681 shares declining and only 876 shares advancing on the NSE. The bearish sentiment may persist, given the index's breach of the 50 and 200-day EMAs, alongside the continuation of the lower highs-lower lows formation. Below are some trading ideas for the near term:
Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox
Religare Enterprises | CMP: Rs 252.80
Religare Enterprises has shown resilience, bouncing back from the critical support zone of Rs 236, a level that has held firm multiple times over the past nine months. Technically, the price action suggests potential upside if Rs 255 is decisively breached and sustained, which could lead to further momentum towards Rs 280. The short-term moving average, acting as dynamic resistance, aligns with this key level. A breakout above Rs 255, supported by strong volumes, could confirm bullish strength.
Volume is picking up, and the RSI (Relative Strength Index) is recovering from oversold territory, indicating potential bullish momentum. The pink moving average (likely a short-term EMA) will also act as resistance around Rs 255. If that level is breached, we could see acceleration towards Rs 280.
On the downside, a break below Rs 230 would invalidate this bullish outlook, potentially leading to further weakness. Indicators such as RSI are showing signs of recovery from oversold conditions, reinforcing the possibility of a continued uptrend. Investors should monitor Rs 255 closely for confirmation of sustained strength.
Strategy: Buy
Target: Rs 280
Stop-Loss: Rs 230
Chambal Fertilisers and Chemicals | CMP: Rs 555.75
Chambal Fertilisers has successfully broken out of a prolonged consolidation phase, signaling a potential upside towards Rs 595–Rs 615 in the coming sessions. Technical indicators support this momentum. ADX (Average Directional Index) is rising, indicating strengthening trend strength, while MACD (Moving Average Convergence Divergence) is turning positive, reinforcing bullish sentiment. RSI at 67.69 is trending higher but remains below overbought levels, suggesting further room for an up-move. The breakout has been accompanied by a surge in trading volume, confirming buying interest.
For the bullish outlook to remain intact, Chambal must hold above the Rs 540 level. A decisive close below Rs 518 would negate the positive view and signal a potential reversal. Traders should watch for sustained strength above Rs 540 for confirmation of continued upward momentum.
Strategy: Buy
Target: Rs 595, Rs 615
Stop-Loss: Rs 540
Borosil | CMP: Rs 401.60
Borosil moves within a well-defined upward-trending channel. The stock has also given a 10-day EMA breakout, indicating renewed bullish momentum. Technical indicators are reinforcing the strength in the current move. ADX is rising, signaling an improving trend, while MACD is turning positive, hinting at further upside. RSI at 55.35 is gaining traction, suggesting sustained buying interest without entering the overbought zone. The surge in volume confirms accumulation at lower levels, supporting the bullish outlook.
With the stock trading above key moving averages and maintaining its positive structure, we expect Borosil to test Rs 445 in the mid-term. However, for this view to hold, the stock must sustain above Rs 370. A breach below this level would negate the bullish stance, warranting a reassessment of the trend.
Strategy: Buy
Target: Rs 445
Stop-Loss: Rs 370
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Manappuram Finance | CMP: Rs 208.64
Manappuram Finance is in a strong uptrend, forming a series of higher tops and bottoms, indicating bullish sentiments. It is also well placed above its 20, 50, 100, and 200-day SMAs, and these SMAs are inching up along with the price rise, reconfirming the bullish trend. The daily, weekly, and monthly strength indicator RSI is in favourable terrain, showing rising strength. Investors should buy, hold, and accumulate this stock. Its expected upside is Rs 225–235, and its downside support zone is Rs 200–197.
Strategy: Buy
Target: Rs 225, Rs 235
Stop-Loss: Rs 200
JSW Steel | CMP: Rs 980.75
Since October 2022, JSW Steel has been in a strong trend, forming a series of higher tops and bottoms. On the weekly timeframe, the stock is trending higher within the "up-sloping" channel, which reconfirms the positive bias. The stock has recaptured its 20, 50, 100, and 200-day SMAs and rebounded sharply.
The daily and weekly strength indicator RSI is in favourable terrain, showing rising strength. Investors should buy, hold, and accumulate this stock. Its expected upside is Rs 1,050–1,150, and its downside support zone is Rs 950–935.
Strategy: Buy
Target: Rs 1,050, Rs 1,150
Stop-Loss: Rs 950
Rajesh Bhosale, Technical Analyst at Angel One
Redington | CMP: Rs 231.80
Over the past few weeks, Redington has witnessed strong volume activity, culminating in a bullish breakout last week. Since April, the stock faced resistance around the Rs 220 level, but it has now closed above it with a strong bullish candle. A continuation of the bullish pattern is evident on the weekly chart, marking the highest weekly close. We anticipate this positive momentum to persist in the near term. Hence, we recommend buying Redington around Rs 232–Rs 230.
Strategy: Buy
Target: Rs 249
Stop-Loss: Rs 222.4
JK Cement | CMP: Rs 4,879.7
JK Cement has shown notable relative strength in recent weeks, outperforming and holding higher levels despite broader market weakness. It remains in a primary uptrend, supported by a series of higher highs and higher lows. Currently, it is forming a bullish Cup and Handle pattern, indicating potential for further upside. Additionally, the breakout is accompanied by strong volumes, reinforcing the positive momentum. Hence, we recommend buying JK Cement around Rs 4,880–Rs 4,840.
Strategy: Buy
Target: Rs 5,280
Stop-Loss: Rs 4,630
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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