The benchmark indices closed the range-bound session with moderate losses on July 8, with the Nifty 50 consistently sustaining the 24,300 level. About 1,443 shares declined, while 937 shares advanced on the NSE. The index is likely to trade within the 24,000-24,500 range. Breaking the upper range may take it towards 24,800, and below 24,000, the 23,700 level is the one to watch. Here are some trading ideas for the near term:
Mehul Kothari, DVP – Technical Research at Anand Rathi
Hindustan Copper | CMP: Rs 342
After a period of consolidation and a corrective move, we are witnessing a double bottom formation on the daily chart of Hindustan Copper. The support of this double bottom formation coincides with the support from the Ichimoku flat line. Additionally, we are seeing a fresh trendline breakout in the stock, indicating that the rally might resume. Thus, we advise traders to go long in the stock near Rs 340 – 330.
Strategy: Buy
Target: Rs 390, Rs 410
Stop-Loss: Rs 299
Chambal Fertilisers and Chemicals | CMP: Rs 534
Over the past few weeks, most fertilizer stocks have been in the limelight and have witnessed a massive upside. Chambal Fertilisers confirmed a major breakout above Rs 500 during June 2024. After this, the stock corrected and consolidated for a few sessions. We are now witnessing a fresh breakout, indicating the resumption of the uptrend. Therefore, we advise traders to accumulate the stock in the range of Rs 540 – 530.
Strategy: Buy
Target: Rs 590
Stop-Loss: Rs 499
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
GMR Airports Infrastructure | CMP: Rs 99
On the longer timeframe, GMR Infrastructure has witnessed a breakout from a long consolidation formation with strong volume, closing above Rs 95 levels. On the daily chart, it has found a strong base formation at its last breakout levels. The overall structure is very lucrative as it trades above its all-important moving averages. On the upside, Rs 100 is an immediate resistance area; above this, we can expect a run-up towards Rs 105+ levels in the near term. On the downside, Rs 94.50 is a major support for any correction. The momentum indicator RSI (Relative Strength Index) is also positively poised, while MACD (Moving Average Convergence Divergence) supports the current strength.
Strategy: Buy
Target: Rs 107
Stop-Loss: Rs 94.50
Tube Investments of India | CMP: Rs 4,329
Tube Investments of India is in a classic uptrend, having broken out of a prolonged consolidation phase on the daily chart. It recently retested its previous breakout level at Rs 4,100 and is now starting a new rally towards Rs 4,600. The formation of higher highs and higher lows is evident. Investors can consider entering at the current price of Rs 4,329, with a stop-loss at Rs 4,050, targeting Rs 4,600 and Rs 4,850. The MACD supports the current strength, and the momentum indicator RSI also shows a positive outlook.
Strategy: Buy
Target: Rs 4,850
Stop-Loss: Rs 4,050
BHEL | CMP: Rs 328
Bharat Heavy Electricals (BHEL) is in a classical uptrend and is now breaking out of an ascending triangle formation to resume its uptrend. The breakout coincides with rising volume, and it manages to sustain above the breakout level despite weakness in the broader market. It is trading above its all-important moving averages with a positive bias in momentum indicators. On the downside, Rs 308 is important support; if it slips below this, a cluster of moving averages around the 300 level will act as the next support level.
Strategy: Buy
Target: Rs 354
Stop-Loss: Rs 308
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Alkem Laboratories | CMP: Rs 5,222
Alkem has provided a reversal from the lower end of the sideways consolidation, which has taken the form of a rectangle. The stock is now likely to inch towards the upper end of the range on a conservative basis and surpass those levels on an aggressive basis. The targets on the upside are Rs 5,500 and Rs 5,700 levels, whereas the immediate support is pegged at Rs 5,040 in the short term, with Rs 5,000 being a good support on a closing basis. The momentum indicator MACD has provided a buy crossover on the daily charts, indicating a short-term uptrend. There is some good Call unwinding seen at the current and higher strikes of the Call options, and the PCR (Put Call Ratio) is also trading near oversold territory, making the probability on the upside quite high.
Strategy: Buy
Target: Rs 5,500, Rs 5,700
Stop-Loss: Rs 5,040
Tata Consumer Products | CMP: Rs 1,150.80
Tata Consumer Products has technically provided a breakout from the falling trendline, which got retested and then provided another breakout from a smaller falling trendline. With this, the higher tops and higher bottoms journey continues. The stock has seen good short covering in the near term, and if it manages to sustain above Rs 1,150, it can see some good long additions as well.
Strategy: Buy
Target: Rs 1,225
Stop-Loss: Rs 1,115
Nestle India | CMP: Rs 2,603
Nestle India appears to have completed wave 4 on the weekly charts. With this breakout from the falling trendline, it seems to have started wave 5 up, which could take it above Rs 2,800 levels in the near term. The momentum indicator MACD has also provided a bullish crossover, which is positive for the stock in the near term. The stock has been rising in an upward sloping parallel channel, indicating a trend continuation. From the derivative front, the stock has seen good short covering and has resistance at Rs 2,600, where it has the highest Call open interest. Above these levels, we can expect further short covering, which will help the stock to inch towards the short-term target of Rs 2,750 and Rs 2,825 levels.
Strategy: Buy
Target: Rs 2,750, Rs 2,825
Stop-Loss: Rs 2,500
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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