The benchmark indices saw profit booking on July 2, falling more than a third of a percent, with market breadth dominated by bears. About 1,597 shares were controlled by bears, compared to 1,052 supported by bulls on the NSE. The consolidation is expected to continue until the frontline indices decisively surpass their recent swing highs. Below are some short-term trading ideas to consider:
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
JSW Steel | CMP: Rs 1,059.9
JSW Steel has broken out of a Symmetrical Triangle pattern on the daily charts. The breakout has been accompanied by above-average volume. We expect the stock to witness a sharp rise over the next few weeks.
Strategy: Buy
Target: Rs 1,115, Rs 1,150
Stop-Loss: Rs 1,020
Lupin | CMP: Rs 1,968.4
Lupin has formed a Wedge pattern on the daily charts. In the penultimate session, it formed a Hammer candlestick pattern on the daily chart, which generally appears at the end of a decline. On the daily momentum indicator, there is a positive divergence, suggesting a loss of selling pressure. We expect the stock to witness a sharp rise over the next few trading sessions.
Strategy: Buy
Target: Rs 2,035, Rs 2,097
Stop-Loss: Rs 1,920
Sudeep Shah - Deputy Vice President, Head of Technical and Derivative Research at SBI Securities
Amber Enterprises India | CMP: Rs 7,224.5
Amber Enterprises is on the verge of giving a horizontal trendline breakout on the daily scale. Over the last three trading sessions, the volumes recorded were above the 50-day average, which is a sign of accumulation before the actual breakout happens.
Currently, the stock is trading above its short- and long-term moving averages, both of which are in rising mode—a bullish sign. Furthermore, the daily RSI is in bullish territory and is edging higher. Hence, we recommend accumulating the stock in the zone of Rs 7,250-7,200 levels.
Strategy: Buy
Target: Rs 7,900
Stop-Loss: Rs 7,000
UltraTech Cement | CMP: Rs 12,436
Ultratech Cement has given a horizontal trendline breakout on the daily scale, confirmed by relatively higher volume. As the stock is trading at an all-time high, all the moving averages and momentum-based indicators suggest strong bullish momentum.
The daily RSI is in bullish territory and rising. The daily MACD remains bullish, quoting above the zero line and the signal line, while the MACD histogram indicates a pickup in upside momentum. Hence, we recommend accumulating the stock in the zone of Rs 12,450-12,400 levels.
Strategy: Buy
Target: Rs 13,300
Stop-Loss: Rs 12,000
Rupak De, Senior Technical Analyst at LKP Securities
FSN E-Commerce Ventures | CMP: Rs 211.59
Nykaa has been in a steady uptrend since forming a low near Rs 155 in March. Recently, it broke above a consolidation range, indicating rising optimism. The RSI shows a bullish crossover and is trending higher. Furthermore, a golden crossover on the daily timeframe reinforces the bullish view.
Strategy: Buy
Target: Rs 230
Stop-Loss: Rs 204
GMR Airports | CMP: Rs 88.4
GMR Airports has moved above a previous resistance line on the daily chart, indicating renewed buying interest. The RSI is in a positive crossover, suggesting strengthening momentum. Additionally, price action above the 50-day simple moving average confirms a bullish trend.
Strategy: Buy
Target: Rs 91.50, Rs 94
Stop-Loss: Rs 85.40
Gujarat Gas | CMP: Rs 499.4
Gujarat Gas has broken above a previous swing high on the daily chart, indicating growing buying interest. The RSI is in a positive crossover, reflecting improving bullish momentum. Moreover, the price is trading above the 200-day simple moving average, suggesting a bullish long-term bias.
Strategy: Buy
Target: Rs 540
Stop-Loss: Rs 479
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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