Equity benchmarks closed 0.2 percent lower after a choppy session on July 9. The market breadth remained favourable for bears, with 1,356 shares declining compared to 1,295 advancing shares on the NSE. The frontline indices are expected to continue trading within the previous week's range.
Below are some short-term trading ideas to consider:
Jatin Gedia, Technical Research Analyst, Mirae Asset Sharekhan
Cholamandalam Investment and Finance Company | CMP: 1,563.1
Cholamandalam Investment and Finance Company has completed the final leg of a symmetrical triangle pattern and has witnessed buying interest. On the weekly timeframe, it has taken support at the 20-week moving average (Rs 1,536). We expect the stock to trade with a positive bias.
Strategy: Buy
Target: Rs 1,666
Stop-Loss: Rs 1,506
Bharat Heavy Electricals | CMP: Rs 262
BHEL has retraced 50 percent of its previous rise and has now resumed the next leg of its upmove. The rise has been accompanied by above-average volume, suggesting renewed interest in the stock.
Strategy: Buy
Target: Rs 272, Rs 281
Stop-Loss: Rs 256
Power Grid Corporation of India | CMP: Rs 299.65
Power Grid Corporation broke out of a falling channel last week, then retested the breakout level and has since resumed its upmove. The daily momentum indicator has given a positive crossover, which is considered a buy signal.
Strategy: Buy
Target: Rs 321
Stop-Loss: Rs 293
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities
ICICI Prudential Life Insurance Company | CMP: Rs 680.35
On Wednesday, ICICI Prudential Life Insurance registered a Stage-2 Cup pattern breakout on the daily chart, accompanied by volume above the 50-day average, confirming the strength of the move. It is currently trading above both its short- and long-term moving averages, which are not only rising but also aligned in the desired sequence. Additionally, the daily RSI is in bullish territory and trending upward, further supporting the positive momentum. We recommend accumulating the stock in the zone of Rs 685-680 levels.
Strategy: Buy
Target: Rs 740
Stop-Loss: Rs 655
Ceat | CMP: Rs 3,863.4
Over the past two trading sessions, tyre stocks have been strongly outperforming the frontline indices. Ceat has recently witnessed a falling channel breakout on the daily chart, followed by a steady upward move accompanied by relatively higher volumes. The stock is now trading above its key moving averages, reinforcing the bullish sentiment.
Technically, the daily RSI has crossed the 60 mark and continues to rise, while the MACD remains in bullish territory, staying above both the zero line and the signal line. Hence, we recommend accumulating the stock in the zone of Rs 3,870-3,850 levels.
Strategy: Buy
Target: Rs 4,150
Stop-Loss: Rs 3,740
Rupak De, Senior Technical Analyst at LKP Securities
Apollo Tyres | CMP: Rs 473.9
Apollo Tyres has given a breakout above a falling trendline resistance on the daily chart, indicating a bullish reversal. It has also moved above both the 50DMA and 200DMA, reinforcing the positive sentiment. Volume has picked up alongside the breakout, adding strength to the move. Additionally, the RSI has crossed above the 60 mark and broken out of a downward sloping trendline, signaling strong momentum.
Strategy: Buy
Target: Rs 519
Stop-Loss: Rs 454
Dabur India | CMP: Rs 522.15
Dabur has given a strong breakout above a falling trendline, accompanied by a sharp rise in volume, indicating bullish momentum. The stock has also moved past the 200DMA, strengthening the positive bias. The RSI has surged above 75, suggesting strong buying interest, though it also indicates slightly overbought conditions in the near term. As long as the stock holds above the breakout level of Rs 510, the momentum is likely to sustain.
Strategy: Buy
Target: Rs 555
Stop-Loss: Rs 504
Bandhan Bank | CMP: Rs 178
Bandhan Bank corrected down to the rising trendline on the daily chart before staging a recovery. It continues to sustain above the critical short-term moving average, the 50DMA. Additionally, a reciprocal ABCD pattern has formed on the daily timeframe, indicating the potential for a swift rebound.
Strategy: Buy
Target: Rs 185, Rs 188
Stop-Loss: Rs 173
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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