The benchmark indices reversed all of the previous day's gains and finished the session more than one percent lower on November 7, with market breadth favouring bears. About 1,569 shares fell, while 928 shares gained on the NSE. The market is expected to consolidate further until it trades below all key moving averages. Below are some trading ideas for the near term:
Ameya Ranadive, CMT CFTe, Senior Technical Analyst at StoxBox
Firstsource Solutions | CMP: Rs 381
Firstsource Solutions is currently moving within a positive upward channel, demonstrating strong momentum backed by significant volume accumulation over the last three days. The stock has recently broken through a key resistance level at Rs 375 and is maintaining levels above this threshold, signaling potential for further gains. Technical indicators support this strength: the RSI (Relative Strength Index) stands robustly at 64, and the ADX (Average Directional Index) is showing strength at 31.5. Firstsource is trading above all key exponential moving averages (9, 20, 50, 100, and 200 EMA), reflecting a well-supported bullish trend. If the stock can sustain above Rs 372 for two days, an upside movement toward Rs 400–410 levels appears achievable. However, a break below Rs 360 may indicate a shift in momentum.
Strategy: Buy
Target: Rs 405, Rs 415
Stop-Loss: Rs 360
Welspun Corp | CMP: Rs 798.65
Welspun Corp has been consolidating within a broad range of Rs 765–Rs 665 for the past three months and has now successfully broken out, pointing to renewed buying interest. The stock has surpassed a critical resistance zone at Rs 765 and is sustaining well above it. RSI is strong at 67, and Welspun is trading above all major EMAs (9, 20, 50, 100, and 200), underscoring bullish sentiment. If the stock holds above Rs 770 for two consecutive days, further upside toward Rs 835–845 may be seen. However, a dip below Rs 755 could signal a potential change in momentum.
Strategy: Buy
Target: Rs 835, Rs 845
Stop-Loss: Rs 755
Thirumalai Chemicals | CMP: Rs 336.5
Tirumalai Chemicals has shown resilience recently, bouncing back from a support zone around Rs 290 and pushing past a key resistance at Rs 325. The stock is currently trading above its 20, 50, 100, and 200 EMAs, indicating an upward bias. The RSI, currently at 59, has risen from previous support levels, which further signals strength. A short-term move toward Rs 355 is anticipated, with potential for further buying interest once this level is broken.
Strategy: Buy
Target: Rs 357, Rs 368
Stop-Loss: Rs 315
Chandan Taparia, Head - Equity Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Coromandel International | CMP: Rs 1,778
Coromandel International has given a trendline breakout with high buying volumes to support the upward move. Buying has been visible across the fertilizer space, which may sustain the bull run. The RSI indicator is rising, suggesting bullish momentum.
Strategy: Buy
Target: Rs 1,885
Stop-Loss: Rs 1,725
City Union Bank | CMP: Rs 181
City Union Bank has broken out of its accumulation zone with a volume spike visible on the daily chart. It is perfectly respecting its 50 DEMA. The MACD (Moving Average Convergence Divergence) indicator has given a bullish crossover and is headed up, confirming the upward momentum.
Strategy: Buy
Target: Rs 190
Stop-Loss: Rs 175
Bharat Electronics | CMP: Rs 300.4
Bharat Electronics has broken out of a range on the daily chart with a large-bodied candle on the weekly chart. The ROC (Rate of Change) momentum indicator has turned upward, suggesting bullish sentiment.
Target: Rs 325
Stop-Loss: Rs 288
Kunal Kamble, Senior Technical Research Analyst at Bonanza
State Bank of India | CMP: Rs 859.6
State Bank of India has broken out of its one-month consolidation and closed above the breakout zone, signaling a positive trend. The increase in price, accompanied by higher volume, indicates strong buyer interest. Additionally, the price trading above both the fast (50 EMA) and slow (100 EMA) moving averages supports the uptrend. The RSI breaking out above its resistance level further suggests increasing momentum. Based on this technical setup, a long position can be considered in SBI with a stop-loss at Rs 800, targeting an upward move toward Rs 950-1,000.
Strategy: Buy
Target: Rs 950, Rs 1,000
Stop-Loss: Rs 800
FSN E-Commerce Ventures | CMP: Rs 191.5
Nykaa has resumed its upward movement following a throwback and has taken support at the 100 EMA, suggesting that this EMA may serve as strong support in the coming days. The price has also closed above the 50 EMA, indicating a potential uptrend. Additionally, the RSI is trending upward, aligning with the price action. Based on this technical setup, a long position can be considered in Nykaa with a stop-loss at Rs 180, targeting an upside move toward Rs 205-220.
Strategy: Buy
Target: Rs 205, Rs 220
Stop-Loss: Rs 180
Tata Communications | CMP: Rs 1,805.8
Tata Communications shows that sellers are losing strength in the downtrend. The decreasing volume during the distribution phase suggests a weakening downtrend. The appearance of multiple Doji candles near the rising trendline, along with a Hammer candlestick pattern followed by a strong bullish candle, indicates buyer interest near the support level. Additionally, the RSI trading above its moving average, along with a breakout from consolidation, supports the bullish price action. Based on this technical setup, a long position can be considered in Tata Communications with a stop-loss at Rs 1,700, targeting an upward move toward Rs 2,000-2,100.
Strategy: Buy
Target: Rs 2,000, Rs 2,100
Stop-Loss: Rs 1,700
Amol Athawale, VP-Technical Research at Kotak Securities
Oberoi Realty | CMP: Rs 2,032
Oberoi Realty has shown a robust rally from the lower levels in recent sessions. Moreover, there is a fresh breakout, along with incremental volume, from the ascending triangle chart formation on the daily scale. As a result, the comfortable close above its breakout zone suggests upward momentum to persist in the coming sessions.
Strategy: Buy
Target: Rs 2,170
Stop-Loss: Rs 1,960
Tata Consultancy Services | CMP: Rs 4,151
Post a decline from higher levels, TCS rebounded from its support zone and witnessed a steady recovery from the lower levels. Additionally, on the daily charts, the counter has given a breakout from its sloping channel formation. The upward moves in the counter suggest a new leg of the bullish trend from the current levels.
Strategy: Buy
Target: Rs 4,440
Stop-Loss: Rs 4,000
Apollo Tyres | CMP: Rs 497.5
After a short-term price correction, Apollo Tyres has formed a double bottom chart pattern. The bullish activity near the support zone indicates that the counter has limited downside. Hence, it is a good candidate in terms of the risk and reward scenario. Therefore, the texture of the chart suggests a fresh upward rally in the near term.
Strategy: Buy
Target: Rs 535
Stop-Loss: Rs 480
Hardik Matalia, Derivative Analyst at Choice Broking
PB Fintech | CMP: Rs 1,739
PB Fintech is currently in a consolidation phase, moving within a defined range. The stock recently experienced a pullback after marking a record high and is now consolidating near a demand zone. This consolidation phase indicates a healthy pause in its uptrend as it builds strength near crucial support levels. The stock is also on the verge of a breakout from its consolidation range. With the stock trading close to its 20-day and 50-day EMAs, it has maintained a steady position, suggesting balanced investor sentiment.
Furthermore, the RSI stands at 57.06 and is trending upwards, which signals increasing buying interest. This upward RSI trend points to a potential continuation of the uptrend if the price action aligns with technical strength. A sustained move above the Rs 1,780 level would confirm this breakout and could drive the stock toward an upside target of Rs 1,890, providing traders with a clear target zone. However, a stop-loss at Rs 1,655 is recommended to manage risk, as a drop below this level might indicate a weakening of the current consolidation phase.
Strategy: Buy
Target: Rs 1,890
Stop-Loss: Rs 1,655
Ceat | CMP: Rs 2,874
Ceat is maintaining a long-term uptrend with a pattern of higher highs and higher lows observed over the past few months. This consistent trend indicates strong bullish sentiment. Recently, after an impulsive upward move, the stock has entered a sideways to mild pullback phase, finding support near demand zones. This suggests a stable consolidation before the next upward move. Notably, Ceat has broken out above a falling trendline, which signals a bullish outlook and could lead to further gains. The RSI is at 50.72, having reversed from lower levels, and shows room for additional upside, hinting at potential momentum strengthening in the coming sessions.
Furthermore, Ceat has recently bounced back from its 200-day EMA and has surpassed both the 20-day and 50-day EMAs, confirming a favourable technical setup. If Ceat maintains its position above Rs 2,890, it could advance toward an upside target of Rs 3,135. However, to manage risk effectively, a stop-loss at Rs 2,740 is advisable, as a dip below this level may indicate a loss of bullish strength in the current trend. This setup offers a balanced risk-to-reward ratio for traders.
Strategy: Buy
Target: Rs 3,135
Stop-Loss: Rs 2,740
EID Parry India | CMP: Rs 850.4
EID Parry India is showing signs of recovery after hitting a low of Rs 741.3. The stock has been moving within a range, attempting to find stability before making its next move. It has strong support at Rs 805 (near the 20-day and 50-day EMAs) and resistance around Rs 875, which is near its all-time high. If the price breaks above Rs 880, it could trigger a new upward trend, pushing the stock towards Rs 925 and potentially higher. The stock has witnessed consistent trading volume, but it needs to break above the resistance level on stronger volume to confirm a sustainable uptrend. If the price holds above the Volume Weighted Average Price (VWAP) of approximately Rs 845, a recovery can be anticipated in the coming sessions. EID Parry is showing signs of recovery in the short term, especially if it can break above the Rs 880 level. Investors can look for buying opportunities on dips while keeping an eye on a stop-loss at Rs 810 and a target of Rs 925 for further movement.
Strategy: Buy
Target: Rs 925
Stop-Loss: Rs 810
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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