The benchmark indices recorded a healthy rebound on February 4, with the Nifty 50 soaring 1.6 percent to close above both the 50 and 200-day EMAs. The market breadth turned positive, with about 1,797 shares advancing compared to 764 shares that saw a correction on the NSE. The bullish sentiment is expected to sustain with the VIX reaching a one-month low. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
Federal Bank | CMP: Rs 181.23
On the daily time frame, Federal Bank had been in a downtrend. However, it is currently in oversold territory and is near its demand area. The chart's formation and technical indicator RSI (Relative Strength Index) suggest that the stock is very likely to rebound for a new leg of upward movement from its demand zone.
Strategy: Buy
Target: Rs 194
Stop-Loss: Rs 174
Tata Motors | CMP: Rs 710.55
After a decline from higher levels, Tata Motors has rebounded from its support zone on the daily charts. Moreover, there has been a breakout of a sloping trendline along with decent volume activity. The stock is witnessing a steady recovery from lower levels. The uptrend in the stock suggests a new leg of bullish momentum in the near term.
Strategy: Buy
Target: Rs 760
Stop-Loss: Rs 680
Larsen & Toubro | CMP: Rs 3,439.15
After a short-term price correction, Larsen & Toubro is near its multiple support zones. The bullish momentum near the support zone indicates that the downside is restricted. Therefore, the current rebound in the stock is expected to witness further upward movement from the current levels, presenting a favourable risk-to-reward perspective.
Strategy: Buy
Target: Rs 3,670
Stop-Loss: Rs 3,310
Om Mehra, Technical Analyst at Samco Securities
Shriram Finance | CMP: Rs 576.75
Shriram Finance has shown strong momentum, closing above the previous resistance level of Rs 560. The stock is now trading above both the 9-day and 20-day moving averages (DMAs), reflecting sustained bullish momentum. The weekly trend also remains positive, further supporting the upward bias. A breakout above the Rs 580 level could extend the rally further, opening the door for additional gains. Additionally, the stock is holding firmly above the 61.8% Fibonacci retracement level, which reinforces the bullish outlook. Hence, based on the technical structure, one can initiate a long position at the current market price (CMP).
Strategy: Buy
Target: Rs 625
Stop-Loss: Rs 552
Amber Enterprises India | CMP: Rs 6,918.75
Amber Enterprises India has displayed a remarkable recovery following a prolonged downtrend, supported by a steady rise in volumes. The stock is showing signs of strength after forming a triple bottom pattern on the daily chart, a classic reversal signal. Additionally, it has crossed above its 20-day moving average (DMA), indicating a potential shift in momentum toward the upside.
The immediate resistance level for the stock is at Rs 7,000, and a breakout above this level could lead to further gains. On the downside, the 9-day moving average acts as a critical support level, maintaining the bullish structure as long as it holds. Hence, based on the technical structure, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 7,400
Stop-Loss: Rs 6,550
Reliance Industries | CMP: Rs 1,285.20
Reliance Industries (RIL) delivered a strong closing, breaking out of a prolonged consolidation phase. The stock surpassed the crucial resistance level of Rs 1,270, signaling a potential shift in momentum. The stock is now trading comfortably above its 9-day and 20-day moving averages (DMAs). The daily RSI, which previously displayed positive divergence, is now holding firmly above the average line of 50.
The surge in price, accompanied by rising volumes, further confirms the upward momentum. The immediate resistance is placed at Rs 1,295. A breakout above this level could open significant upside potential for the stock, paving the way for further gains in the near term. Hence, based on the technical structure, one can initiate a long position at the CMP.
Strategy: Buy
Target: Rs 1,380
Stop-Loss: Rs 1,245
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Concord Biotech | CMP: Rs 2,237.25
The pharma sector is in sync with Nifty’s performance, with Concord Biotech being one of the major contributors to the outperformance of the pharma sector. In the previous session, the stock witnessed a gap-up opening and gained more than 4%, which is a strong bullish sign. Recently, prices took support at its multi-year trendline and reversed to the upside. Also, prices have protected their prior day’s low since January 28, which keeps the daily bias in favour of the bulls.
Currently, prices have just closed above its thick Ichimoku cloud, which further supports our stance. However, confirmation is needed with follow-up buying. Additionally, the MACD (Moving Average Convergence Divergence) has just given a bullish crossover; a breach above the zero line can suggest that positive momentum will continue in the stock. In summary, the current trend for Concord Biotech is bullish. A break above Rs 2,270 levels can lead to a trending move towards Rs 2,370, followed by Rs 2,485 levels. On the downside, Rs 2,160 is the nearest support to look for.
Strategy: Buy
Target: Rs 2,370, Rs 2,485
Stop-Loss: Rs 2,160
Muthoot Finance | CMP: Rs 2,239
In the previous session, the finance services sector gained more than 2%, with Muthoot Finance surging by more than 3%, which is a positive sign. The stock has been consistently outperforming the sector as well as Nifty, highlighting its strength. On the daily chart, prices were unable to sustain below the mid-Bollinger band and reversed to the upside. However, the stock is still trading within a broader range of Rs 2,085 to Rs 2,275 levels at the upper end.
A decisive break above Rs 2,275 levels is necessary for a trending move to emerge on the upside. In summary, the current trend for Muthoot Finance looks to be bullish. A break above Rs 2,275 is required for a trending move to emerge towards Rs 2,380, followed by Rs 2,500 levels. On the downside, Rs 2,160 is the nearest support.
Strategy: Buy
Target: Rs 2,380, Rs 2,500
Stop-Loss: Rs 2,160
Wockhardt | CMP: Rs 1,630.4
Wockhardt closed on a positive note with a gain of 3.67%. The stock has formed a rounding bottom pattern. The price has closed above Rs 1,583, confirming the breakout of the said pattern. On the daily chart, the price is trading above the Ichimoku cloud, indicating that the short-term bias is bullish. Also, prices have been forming bullish candles for the past three consecutive sessions, suggesting strength in the ongoing trend. In summary, the current trend for Wockhardt is bullish. Use dips towards Rs 1,600-1,615 as a buying opportunity for a move towards Rs 1,730-1,750 levels, as long as Rs 1,550 holds on the downside.
Strategy: Buy
Target: Rs 1,730, Rs 1,750
Stop-Loss: Rs 1,550
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.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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