The benchmark indices experienced a bear trap on October 3, falling more than 2 percent amid geopolitical tensions. Market breadth was negative, with about 2,022 shares declining and 495 shares advancing on the NSE. Given the weak sentiment, the market may extend its downward journey in the upcoming sessions. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
SBI Life Insurance Company | CMP: Rs 1,806
After a remarkable upward move, SBI Life has been taking a breather over the past few sessions. The stock's consolidation within a rangebound structure suggests a bullish continuation chart pattern. Moreover, it comfortably closed above its short-term moving average, indicating that it is likely to resume its uptrend from current levels.
Strategy: Buy
Target: Rs 1,940
Stop-Loss: Rs 1,750
Hindustan Zinc | CMP: Rs 523
Hindustan Zinc is currently in an accumulation zone, trading in a rangebound mode for several sessions. The chart pattern and the technical indicator ADX (Average Directional Index) suggest that the stock is likely to break out of its rectangle formation, paving the way for a new upward move in the near term.
Strategy: Buy
Target: Rs 560
Stop-Loss: Rs 500
KPIT Technologies | CMP: Rs 1,676
After a short-term price correction, KPIT Technologies is trading near its multiple support zones. The decent volume activity near these support levels indicates that the downside is limited. Therefore, the stock's current rebound is expected to gain further bullish momentum from its present levels, offering a favourable risk-reward perspective.
Strategy: Buy
Target: Rs 1,790
Stop-Loss: Rs 1,610
Chandan Taparia, Head - Equity Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Petronet LNG | CMP: Rs 364.5
Petronet LNG has formed a rounding bottom on its daily chart and has surpassed the 50 DEMA (Daily Exponential Moving Average). It has negated the lower highs-lower lows pattern seen over the last five weeks, with supports gradually shifting higher. The stock has formed a bullish Marubozu candle on the daily chart, coupled with a surge in volumes, which implies complete dominance by the bulls.
Strategy: Buy
Target: Rs 390
Stop-Loss: Rs 352
Tata Chemicals | CMP: Rs 1,133
Tata Chemicals has broken out of a falling supply trendline on the daily chart, retested the breakout, and moved higher. Buying interest is visible across the chemicals space, which may support the ongoing uptrend. The breadth indicator ADX has turned upwards, suggesting that the move has strength.
Strategy: Buy
Target: Rs 1,185
Stop-Loss: Rs 1,105
Colgate Palmolive | CMP: Rs 3,838
Colgate Palmolive is in a strong uptrend and continues to hold its gains despite broader market weakness. The stock has formed a bullish candle on the daily chart, with every small decline being bought into. The momentum indicator RSI (Relative Strength Index) is positively placed, which may support the ongoing upward move.
Strategy: Buy
Target: Rs 4,000
Stop-Loss: Rs 3,750
Mandar Bhojane, Equity Research Analyst at Choice Broking
Infibeam Avenues | CMP: Rs 31.6
Infibeam Avenues recently broke out of an ascending triangle on the daily chart. This breakout was accompanied by a significant increase in trading volume, suggesting potential bullish momentum. If the price closes above the Rs 31.70 level, it could pave the way for short-term targets of Rs 40 and Rs 45. On the downside, immediate support is at Rs 30, offering a buying opportunity on dips. The RSI stands at 64.67 and is trending upward, indicating growing buying momentum. To manage risk effectively, it's advisable to set a stop-loss at Rs 29 to protect against an unexpected market reversal.
Strategy: Buy
Target: Rs 40, Rs 45
Stop-Loss: Rs 29
JK Paper | CMP: Rs 463
JK Paper is taking support from a rising trendline and consolidating above a key demand zone. This consolidation, along with a significant increase in trading volume, indicates the potential for a breakout. If the price closes above Rs 470, it could target short-term levels of Rs 560 and Rs 600. On the downside, immediate support is at Rs 440, presenting a buying opportunity on dips. The RSI stands at 50.89 and is trending upward, signaling increasing buying momentum. It's advisable to set a stop-loss at Rs 420 to manage risk effectively.
Strategy: Buy
Target: Rs 560, Rs 600
Stop-Loss: Rs 420
HBL Power Systems | CMP: Rs 641
HBL Power Systems is showing signs of a reversal from lower levels on the daily chart. This upward movement is accompanied by a significant increase in trading volume, indicating strong bullish momentum. If the stock price closes above Rs 645, it could potentially reach short-term targets of Rs 800 and Rs 840. On the downside, immediate support is at Rs 600, offering buying opportunities on dips. The RSI is currently at 58.20 and trending upward, signaling growing buying interest. To manage risk, set a stop-loss at Rs 580 to protect against an unexpected market reversal.
Strategy: Buy
Target: Rs 800, Rs 840
Stop-Loss: Rs 580
Kunal Kamble, Senior Technical Research Analyst at Bonanza
Jindal Steel and Power | CMP: Rs 1,051
Jindal Steel is currently in its fifth impulsive wave, indicating an ongoing uptrend. The price is trading above both the Fast (20 EMA) and Slow (50 EMA) moving averages, supporting the bullish trend. The increasing volume suggests growing buyer interest. Additionally, after a cool down, the RSI has resumed an upward trajectory, aligning with the positive price action. A long position can be considered in Jindal Steel, as long as it holds above the Rs 990 level.
Strategy: Buy
Target: Rs 1,100, Rs 1,300
Stop-Loss: Rs 999
BF Utilities | CMP: Rs 989
BF Utilities has taken support at the 0.618 Fibonacci level and resumed its upward movement. The decreasing volume during the sell-off suggests a retracement, while the increasing volume on buying days indicates strong buyer interest. The price trading above the Ichimoku Cloud further confirms the uptrend. After a cooldown, the RSI has started moving upward, supporting the positive price action. A long position can be considered, provided the stock holds above the Rs 900 level.
Strategy: Buy
Target: Rs 1,150, Rs 1,320
Stop-Loss: Rs 890
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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