Bears remained in power for another session, dragging the benchmark indices down by more than half a percent on October 31. However, overall market breadth continued to favour bulls, with 1,615 shares advancing and 886 shares declining on the NSE. The market might rebound after a couple of days of weakness, but sustainability is the key to watch. Below are some trading ideas for the near term:
Hardik Matalia, Derivative Analyst at Choice Broking
Asahi India Glass | CMP: Rs 750.3
Asahi India Glass has recently broken out of a descending parallel channel, signaling a likely continuation of its bullish trend. This breakout is reinforced by a significant increase in trading volume, underscoring strong momentum and buyer interest. If the stock maintains its position above Rs 755, it could advance further toward a target of Rs 825.
The Relative Strength Index (RSI) has shown a positive crossover and is currently at 56.86, supporting an upward trajectory. Additionally, Asahi India Glass has moved above both its short-term (20-day) and medium-term (50-day) exponential moving averages (EMAs), reinforcing a favourable outlook. These technical signals suggest that the stock’s current strength could carry forward in the near term.
Strategy: Buy
Target: Rs 825
Stop-Loss: Rs 715
Vedant Fashions | CMP: Rs 1,401.65
Vedant Fashions is in a long-term uptrend, having recently broken out of a consolidation range. The stock had been consolidating near resistance levels, consistently forming higher highs and higher lows over the past few months—a bullish pattern that suggests strong upward momentum. This breakout is supported by a notable increase in trading volume, signaling a potential continuation of the uptrend.
After bouncing from its support zones, if the stock sustains above the Rs 1,410 level, it may extend its upward trajectory toward the Rs 1,540 level. The RSI is currently at 63.93 and trending upward, reflecting increased buying momentum. Additionally, Manyavar has recently rebounded from its medium-term (50-day) EMA and surpassed its short-term (20-day) EMA, further confirming the strength of its ongoing uptrend. In summary, technical indicators and market conditions make Manyavar an attractive buying opportunity for investors targeting higher price levels. A key support zone near Rs 1,370 provides a solid base; however, implementing proper risk management strategies is advised to mitigate any downside risk.
Strategy: Buy
Target: Rs 1,540
Stop-Loss: Rs 1,335
BEML | CMP: Rs 4,071.55
BEML presents a promising buying opportunity. The stock has been consolidating within a wide range and now appears ready to break out on the daily chart. This potential breakout is accompanied by a notable increase in trading volume, signaling robust buyer interest. If the price can sustain above the Rs 4,150 level, it is likely to target an upside of Rs 4,490. On the downside, immediate support is at Rs 3,980, which may offer another entry point for buyers if tested.
The RSI is at 60.61 and trending upward, indicating growing buying momentum. Additionally, BEML has rebounded from its long-term (200-day) EMA and moved above its short-term (20-day) and medium-term (50-day) EMAs, strengthening the bullish outlook. In light of these technical indicators, we recommend initiating a long position in BEML at Rs 4,071.55, with a stop-loss set at Rs 3,880 to manage risk and a target price of Rs 4,490.
Strategy: Buy
Target: Rs 4,490
Stop-Loss: Rs 3,880
Chandan Taparia, Head - Equity Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
City Union Bank | CMP: Rs 175.74
City Union Bank is retesting its breakout from a consolidation zone with high buying volumes to support the potential upward move. The momentum indicator RSI has turned up, confirming the bullish sentiment.
Strategy: Buy
Target: Rs 187
Stop-Loss: Rs 170
Laurus Labs | CMP: Rs 491
Laurus Labs has broken out of a double bottom pattern, with massive buying visible on the daily scale. Buying was evident across the pharma space, which may support the move. The ADX (Average Directional Index) line has turned up, suggesting that the bullish move has strength.
Strategy: Buy
Target: Rs 518
Stop-Loss: Rs 478
Max Financial Services | CMP: Rs 1,283
Max Financial Services is in a strong uptrend, with slight dips being bought into and perfectly respecting its 50-day EMA (Exponential Moving Average). The MACD (Moving Average Convergence Divergence) indicator has given a bullish crossover and is heading upward, confirming the bull run.
Strategy: Buy
Target: Rs 1,350
Stop-Loss: Rs 1,250
Amol Athawal, VP - Technical Research at Kotak Securities
IRB Infrastructure Developers | CMP: Rs 51.85
IRB Infrastructure Developers is in an accumulation zone, trading in a rangebound mode for the past few sessions. The texture of the chart formation and the technical indicator RSI indicate that the counter is very likely to break out from the rangebound formation for a new leg of the upward move in the near term.
Strategy: Buy
Target: Rs 56
Stop-Loss: Rs 49
SBI Life Insurance Company | CMP: Rs 1,622
After the remarkable up move in recent weeks, SBI Life Insurance witnessed profit booking at higher levels. Post the recent selloff in the counter, the downward momentum has stopped. On weekly charts, the counter has found support near its important retracement zone. The formation suggests a revival of the uptrend from the current levels in the coming horizon.
Strategy: Buy
Target: Rs 1,730
Stop-Loss: Rs 1,560
Punjab National Bank | CMP: Rs 97.9
On a broader time frame, Punjab National Bank has been in a prolonged downtrend. It is currently in oversold territory and near its demand area. The texture of the chart formation and the technical indicator RSI indicate that the stock is very likely to rebound for a new leg of the upward move from its demand zone.
Strategy: Buy
Target: Rs 106
Stop-Loss: Rs 93
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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