The market showed a smart recovery of losses, tracking positive global cues, and closed flat with a negative bias on August 12. The market breadth was slightly in favour of bears, with about 1,267 shares declining against 1,136 advancing shares on the NSE. A close above 24,500 could drive the Nifty 50 towards the 24,700-24,800 zone, but if it stays below this level, consolidation and range-bound trading may continue with 24,200 as support. Here are some trading ideas for the near term:
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
Eveready Industries | CMP: Rs 473
Eveready Industries has broken out of a multi-year pattern above Rs 465 levels on the longer timeframe with strong volume. The structure is very promising, as it is trading above all of its moving averages. The MACD (Moving Average Convergence Divergence) supports the current strength, while the momentum indicator RSI (Relative Strength Index) is also positively poised. On the higher side, Rs 500 acts as a significant level; above this, we can expect a move towards Rs 540+ in the shorter to longer timeframe. On the downside, Rs 440 serves as important support during any correction.
Strategy: Buy
Target: Rs 540
Stop-Loss: Rs 440
Inox Green Energy Services | CMP: Rs 189
Inox Green Energy Services is emerging from a long consolidation with strong volume. The pattern suggests an immediate target of Rs 200, with the potential to move further upside to the Rs 216 level. On the downside, Rs 170 will act as immediate support. The MACD supports the current strength, and the momentum indicator RSI is also positively poised.
Strategy: Buy
Target: Rs 216
Stop-Loss: Rs 170
India Glycols | CMP: Rs 1,288
India Glycols has given a breakout of a multi-year pattern above Rs 1,150 levels on the longer timeframe with strong volume. After showing some profit booking from higher levels, it retested its last breakout levels around Rs 1,150. Now, it is starting a new leg of a rally towards Rs 1,400 levels. The structure is very attractive, as it is trading above all of its moving averages. The MACD supports the current strength, while the momentum indicator RSI is also positively poised.
Strategy: Buy
Target: Rs 1,420
Stop-Loss: Rs 1,190
Kushal Gandhi, Technical Analyst at StoxBox
NBCC (India) | CMP: Rs 182
Upon analysing the daily timeframe, the price action in NBCC exhibited a modest decline following an 88 percent increase from the March 2024 lows. This decline did not negate the bullish breakout from the rounding bottom pattern, which is a favourable sign for trend continuation. It also suggests the presence of committed investors retaining their positions, thereby limiting potential drawdowns. Notably, the price action underwent a notable technical pullback following a retest of the breakout zone and its 50-day moving average, accompanied by heightened volume and momentum, signaling inherent strength.
Strategy: Buy
Target: Rs 230
Stop-Loss: Rs 167
Orchid Pharma | CMP: Rs 1,478.5
The analysis of Orchid Pharma's pattern indicates a substantial price movement following a surge in price action after a volatility contraction pattern. These observations suggest potential signs of accumulation by informed investors. As the trend has progressed, accumulation phases have been evident in the price action, hinting at further accumulation to bolster the continuation of the trend. Notably, the stock exhibits higher relative strength compared to the Nifty, coupled with heightened demand from buyers. Consequently, a positive outlook on the stock is warranted.
Strategy: Buy
Target: Rs 1,720
Stop-Loss: Rs 1,381
FSN E-Commerce Ventures | CMP: Rs 194.6
The price action of Nykaa has entered an extended phase of consolidation after a 73 percent decline from its all-time high. This prolonged consolidation phase indicates accumulation by astute investors, mitigating the stock's downturns. Notably, the price trend on the weekly timeframe, starting from the April 2023 lows, demonstrates a pattern of higher highs and lows, signaling an improving trend. Additionally, the recent price action depicts a rounding bottom pattern, implying potential indications of a positive trend continuation, offering an opportunity with favourable risk-reward characteristics.
Strategy: Buy
Target: Rs 235
Stop-Loss: Rs 180
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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