The benchmark indices remained consolidative for another session on February 27, closing flat-to-negative and extending the downtrend for the seventh consecutive session. Bears continued to control the market breadth, with a total of 2,162 shares facing selling pressure compared to 459 advancing shares on the NSE. The consolidation is expected to continue until the indices decisively break the range of the last three days on either side. Below are some trading ideas for the near term:
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
SRF | CMP: Rs 2,854
SRF has retested its breakout from a consolidation zone on the daily chart, accompanied by higher-than-average traded volumes. The Stochastic indicator has bounced from its oversold zone, supporting the bullish sentiment.
Strategy: Buy
Target: Rs 3,030
Stop-Loss: Rs 2,775
Berger Paints | CMP: Rs 505.25
Berger Paints has broken out of a consolidation zone and is inching higher despite broader market weakness. Rising volumes confirm the price movement. The MACD (Moving Average Convergence Divergence) indicator is rising, supporting the uptrend.
Strategy: Buy
Target: Rs 528
Stop-Loss: Rs 493
Mandar Bhojane, Equity Research Analyst at Choice Broking
Bajaj Finance | CMP: Rs 8,705.4
Bajaj Finance has broken out from a symmetrical triangle pattern on the daily chart, signaling bullish sentiment. The price is consolidating above the breakout level, indicating strong momentum. Increasing trading volume and the formation of higher highs and higher lows further confirm the uptrend. The RSI (Relative Strength Index) is at 71, trending upwards, reflecting strengthening bullish momentum. These indicators suggest the stock is poised for a rally. To manage risk, traders should set a stop-loss at Rs 8,200. If the momentum sustains, short-term targets of Rs 10,000 and Rs 10,200 could be achieved.
Strategy: Buy
Target: Rs 10,000, Rs 10,200
Stop-Loss: Rs 8,200
Zomato | CMP: Rs 229
Zomato is forming higher lows while trading below a descending trendline on the daily chart, suggesting a potential bullish reversal. The stock has been consolidating near its key support level, indicating accumulation by buyers. Increased trading volume highlights growing buying interest and supports the possibility of continued bullish momentum. A breakout above Rs 235 could trigger a rally toward immediate targets of Rs 260 and Rs 270. On the downside, support at Rs 223 provides a favourable buying opportunity for investors. To minimize risks, a stop-loss at Rs 216 is advisable to safeguard against unexpected reversals.
Strategy: Buy
Target: Rs 260, Rs 270
Stop-Loss: Rs 216
Vidnyan S Sawant, Head of Research at GEPL Capital
Aarti Pharmalabs | CMP: Rs 740.25
Aarti Pharmalabs has been trading in an uptrend, demonstrating strong price stability despite market volatility, highlighting its high relative strength. On the daily scale, the stock has witnessed a bullish mean reversion from the 12-day EMA (Exponential Moving Average), signaling a continuation of its upward trajectory. Additionally, the MACD momentum indicator remains in buy mode, further reinforcing the bullish outlook.
Strategy: Buy
Target: Rs 861
Stop-Loss: Rs 684
Narayana Hrudayalaya | CMP: Rs 1,491
Narayana Hrudayalaya remains in a strong uptrend, with dips finding support near the key 12-month average. This week, the stock broke out of a 13-month consolidation phase with strong volume, indicating its readiness to extend its uptrend. Additionally, the MACD momentum indicator is inching higher, signaling a pickup in momentum.
Strategy: Buy
Target: Rs 1,711
Stop-Loss: Rs 1,398
Gabriel India | CMP: Rs 483.1
Gabriel India has exhibited a strong structural shift on the weekly scale, with a polarity reversal where the December 2023 resistance has now turned into support. Around this key level, the stock has formed a double-bottom pattern, signaling a bullish reversal from neutral to positive. On the daily scale, it has respected the 50% Fibonacci retracement level, reinforcing a positive price action outlook.
Strategy: Buy
Target: Rs 560
Stop-Loss: Rs 457
SBI Cards and Payment Services | CMP: Rs 856.75
SBI Card has demonstrated a strong turnaround on the weekly scale, breaking out from a multi-year sloping trendline drawn from the 2021 swing high. On the daily scale, the stock is forming higher tops and higher bottoms, reflecting high relative strength compared to the broader market. Additionally, the MACD indicator signals momentum acceleration, further reinforcing the bullish outlook.
Strategy: Buy
Target: Rs 978
Stop-Loss: Rs 806
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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