The market closed moderately lower amid consolidation, but formed a bullish candlestick pattern on the daily charts, and the market breadth remained positive, given the continuation of buying interest in the broader markets on February 20. A total of 1,883 shares gained, compared to 710 shares that saw selling pressure on the NSE. The upward journey may continue if the bulls gain further strength in the upcoming sessions. Below are some trading ideas for the near term:
Mandar Bhojane, Equity Research Analyst at Choice Broking
Paras Defence and Space Technologies | CMP: Rs 901.4
Paras Defence has recently tested a strong breakout level on the weekly chart, signaling a potential bullish reversal and a shift in market sentiment. The price action has formed a bullish engulfing pattern on the daily chart and a Hammer on the weekly chart, both indicating strong buying interest. A notable increase in trading volume further supports the likelihood of an upward move, adding conviction to the bullish reversal.
From a technical perspective, the Relative Strength Index (RSI) is at 39.67 and trending upwards, reflecting strengthening bullish momentum. Additionally, the Stochastic RSI has formed a positive crossover, reinforcing the possibility of a rally. These indicators suggest that the stock is gradually gaining momentum and positioning itself for a potential upside. A decisive close above Rs 910 could open the door for short-term targets of Rs 1,050 and Rs 1,060. On the downside, immediate support is placed at Rs 870, offering an attractive entry opportunity on dips.
Strategy: Buy
Target: Rs 1,050, Rs 1,060
Stop-Loss: Rs 830
Mahindra & Mahindra | CMP: Rs 2,839.5
M&M has exhibited a strong bullish reversal from a well-defined demand zone, forming a robust bullish candle on the daily chart. This price action, accompanied by a notable surge in trading volume, indicates strong buying interest at lower levels and the potential for continued upward momentum. The technical indicators further reinforce a bullish outlook, with the RSI trending upwards at 40.40, reflecting strengthening momentum, while the Stochastic RSI has confirmed a positive crossover, signaling additional upside potential.
If the price sustains above Rs 2,860, it could trigger further bullish movement, opening the door for short-term targets of Rs 3,130 and Rs 3,190. On the downside, immediate support is placed at Rs 2,780, presenting a potential buying opportunity on dips.
Strategy: Buy
Target: Rs 3,130, Rs 3,190
Stop-Loss: Rs 2,690
MOIL | CMP: Rs 325.65
MOIL is on the verge of a potential breakout from its daily range, forming a double-bottom pattern on the daily chart. This bullish formation signals a possible trend reversal, with the stock consolidating near the breakout level, indicating accumulation by buyers. Additionally, a notable increase in trading volume suggests growing buying interest, reinforcing the potential for sustained upward momentum.
Technical indicators further strengthen this positive outlook. The RSI is trending higher at 54.68, indicating increasing bullish momentum, while the Stochastic RSI has confirmed a positive crossover, signaling the possibility of a further upside move. If the stock sustains above Rs 330, it could trigger a rally toward near-term targets of Rs 370 and Rs 378. On the downside, Rs 310 acts as a key support level, offering a favourable buying opportunity on dips.
Strategy: Buy
Target: Rs 370, Rs 378
Stop-Loss: Rs 305
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Shriram Finance | CMP: Rs 580.85
Shriram Finance has broken from a falling trendline on the daily chart with higher-than-average traded volumes. It has crossed above its 100 DEMA, which has bullish implications. The MACD (Moving Average Convergence Divergence) momentum indicator is rising, which has bullish implications.
Strategy: Buy
Target: Rs 615
Stop-Loss: Rs 560
SRF | CMP: Rs 2,795.9
SRF has formed a bullish engulfing pattern near its previous breakout levels, suggesting positive sentiment. The Stochastic indicator has exited its oversold zones to confirm the upward momentum.
Strategy: Buy
Target: Rs 2,970
Stop-Loss: Rs 2,710
Jindal Steel & Power | CMP: Rs 879.3
Jindal Steel & Power has reversed from major support levels and headed upward on the daily chart with higher-than-average buying volumes. The RSI Indicator has turned upward, confirming the bullish trend reversal.
Strategy: Buy
Target: Rs 930
Stop-Loss: Rs 850
Kunal Kamble, Senior Technical Research Analyst at Bonanza
NTPC | CMP: Rs 325.15
NTPC has closed decisively above the 21-EMA after a long period, indicating a shift in sentiment to positive. The stock has maintained positive momentum for four consecutive sessions, indicating a positive outlook. Additionally, the RSI has broken through its resistance, supporting the price action. This setup suggests that buyers are actively participating, increasing the likelihood of further upside. Based on these technical factors, a long position can be considered in NTPC with a stop-loss at Rs 290. On the higher side, the stock has the potential to move toward Rs 340–360 in the coming sessions.
Strategy: Buy
Target: Rs 340, Rs 360
Stop-Loss: Rs 290
Anand Rathi Wealth | CMP: Rs 3,861.75
Anand Rathi, after holding its support, has closed above the falling trendline, signaling a bullish breakout. The stock has also managed to close above the 21-EMA, adding to the positive sentiment. Additionally, the RSI has broken out of its falling trendline, aligning with the price action and indicating strengthening momentum. This setup suggests that buyers are gaining traction, increasing the chances of further upside. A long position can be considered in Anand Rathi as long as it remains above Rs 3,490. On the upside, the stock has the potential to move toward Rs 4,250–4,450 in the coming sessions.
Strategy: Buy
Target: Rs 4,250, Rs 4,450
Stop-Loss: Rs 3,490
Indraprastha Gas | CMP: Rs 203.61
Indraprastha Gas (IGL) has given a breakout from its falling parallel channel, signaling a shift toward a positive trend. The stock has also managed to close above the 21-EMA, indicating strength in momentum. Additionally, the RSI has broken out of its resistance, further supporting the price action and suggesting increased buying interest. This setup points to the potential for further gains. A long position can be considered in IGL as long as it stays above Rs 190. On the upside, the stock has the potential to move toward Rs 222 in the near term.
Strategy: Buy
Target: Rs 222, Rs 235
Stop-Loss: Rs 190
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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