The market recovered nearly 150 points from the day's low and defended 24,500 for another session on July 22, with the Nifty 50 declining just 22 points to 24,509 ahead of the Union Budget on July 23. About 1,345 shares advanced, while 1,038 shares declined on the NSE. Experts see less chance of a major correction, with the Nifty likely to take support in the 24,200-24,000 zone, whereas 24,800-25,000 may act as a resistance area. Here are some trading ideas for the near term:
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
PI Industries | CMP: Rs 4,008
PI Industries has given a multi-month breakout above the Rs 4,000 level on the daily chart with strong volume, while on the weekly chart it has broken an upward-sloping channel formation. The structure of the counter is very lucrative, as it is trading above all of its moving averages. The MACD (Moving Average Convergence Divergence) supports the current strength, and the momentum indicator RSI (Relative Strength Index) is also positively poised. On the higher side, Rs 4,200 acts as a resistance level; above this, we can expect a move towards Rs 4,300+ in the shorter to longer timeframe, while on the lower side, Rs 3,800 serves as important support during any correction.
Strategy: Buy
Target: Rs 4,300
Stop-Loss: Rs 3,800
Zen Technologies | CMP: Rs 1,436
On the shorter horizon, Zen Technologies is exhibiting traditional bullish momentum and forming higher highs and higher lows. On the longer horizon, it has broken a Flag formation with a large volume. The counter has a lucrative structure as it is trading above all of its significant moving averages. The momentum indicator RSI is positively poised, and the MACD is witnessing a centerline crossover on the upside. On the higher side, Rs 1,500 is acting as an important psychological level; above this, we can expect the level of Rs 1,550+ in the near-short term, while on the lower side, Rs 1,340 will act as major support during any correction.
Strategy: Buy
Target: Rs 1,564
Stop-Loss: Rs 1,340
Welspun Living | CMP: Rs 178
Welspun Living has seen a breakout of a Cup and Handle formation on the longer timeframe with massive volume, which appears profitable. The structure of the counter looks lucrative, as it is trading above all its important moving averages. On the upper side, Rs 190 is an immediate resistance; above this, we can expect a big move till Rs 195+ in the shorter timeframe, while on the downside, Rs 167 is the demand zone for any correction. The momentum indicator RSI is also positively poised, and the MACD supports the current strength.
Strategy: Buy
Target: Rs 194
Stop-Loss: Rs 167
Mehul Kothari, DVP – Technical Research at Anand Rathi
Latent View Analytics | CMP: Rs 534.5
For many months, Latent View Analytics has been consolidating above the placement of its 200 DEMA (Exponential Moving Average). As a result, we are witnessing multiple bottoms at lower levels, which indicates that the downside is limited. Recently, the stock confirmed a breakout above Rs 567, followed by a pullback. The risk-reward looks lucrative to go long. Thus, we advise traders to buy Latent View Analytics near Rs 530 with a stop-loss of Rs 490 for a target of Rs 610 in the coming months.
Strategy: Buy
Target: Rs 610
Stop-Loss: Rs 490
Chennai Petroleum Corporation | CMP: Rs 1,030
Most petroleum stocks underwent a sharp rally during the first half of July 2024. Then we witnessed some profit booking. As a result, Chennai Petroleum has retraced over 50 percent of the recent rally and now we are witnessing a reversal candlestick pattern on the daily scale. Thus, we advise traders to go long in the stock in the range of Rs 1,030 – 1,010 for a target of Rs 1,250 in the coming months.
Strategy: Buy
Target: Rs 1,250
Stop-Loss: Rs 900
IndiaMART InterMESH | CMP: Rs 2,856
Similar to Latent View, IndiaMART InterMESH confirmed a fresh range breakout above Rs 2,880 during the last week. Afterward, the stock retraced the previous rally and turned from the short-term moving average. The theoretical target for the range breakout is quite higher, and hence the fall could be a buying opportunity. We advise traders to go long in the stock near Rs 2,850 for a target of Rs 3,250 in the coming months.
Strategy: Buy
Target: Rs 3,250
Stop-Loss: Rs 2,650
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Hindustan Unilever | CMP: Rs 2,735.3
HUL has taken off its previous swing high of Rs 2,724 and has seen significant short covering from the lower end, followed by good long built up as well. The momentum indicator MACD is well in the buy mode on the daily as well as weekly chart, indicating that the short-term trend is positive. Since the stock has provided a breakout from the symmetrical triangular pattern, a good directional move is expected on the upside. Generally, July and August are good months for FMCG stocks, so it’s likely to perform positively.
Strategy: Buy
Target: Rs 2,830, Rs 2,900
Stop-Loss: Rs 2,640
Mphasis | CMP: Rs 2,926
Mphasis has been forming higher tops and higher bottoms on the weekly charts. It has recently taken off its crucial resistance of Rs 2,850, and now above these levels, there is no major hurdle until Rs 3,150, and above that Rs 3,400 looks likely. The stock had also risen in an impulsive wave from Rs 1,660 to Rs 2,838 levels, and now with this breakout, another impulse wave seems to have started on the upside. The stock has also witnessed good long built up in the short term, and the entire sector has seen a good reversal from the lower levels except for Wipro so far, which has delivered poor performance.
Strategy: Buy
Target: Rs 3,150, Rs 3,400
Stop-Loss: Rs 2,825
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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