Indian equity benchmarks closed with moderate gains on July 16, continuing their uptrend for another session with positive market breadth. A total of 1,513 shares saw buying interest compared to 1,144 shares that were under bear control on the NSE. The upward journey amid rangebound trading is expected to continue if the market defends the previous day's low. Below are some short-term trading ideas to consider:
Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan
Tata Power Company | CMP: Rs 414.7
Tata Power Company has broken out of a Bullish Flag pattern on the daily charts. The breakout has been accompanied by above-average volume. The daily momentum indicator has triggered a positive crossover from the equilibrium line, which is a buy signal.
Strategy: Buy
Target: Rs 426
Stop-Loss: Rs 402
Maruti Suzuki India | CMP: Rs 12,564
Maruti Suzuki has formed a Symmetrical Triangle pattern on the daily charts. We anticipate a breakout on the upside. The daily momentum indicator is on the verge of providing a positive crossover, which shall provide momentum to the upmove.
Strategy: Buy
Target: Rs 13,086, Rs 13,461
Stop-Loss: Rs 12,200
State Bank of India | CMP: Rs 831.7
State Bank of India was consolidating in a narrowing range since mid-April. The consolidation has broken out on the upside with above-average volume. The daily momentum indicator has triggered a positive crossover, which is a buy signal.
Strategy: Buy
Target: Rs 865
Stop-Loss: Rs 807
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
Punjab National Bank | CMP: Rs 114.97
On Wednesday, the Nifty PSU Bank index stood out as a strong outperformer, rallying nearly 2 percent and registering a breakout from a consolidation phase on the daily chart. Notably, all its constituents ended the session in the green, reflecting broad-based strength within the PSU banking space. Among the standout performers, Punjab National Bank (PNB) attracted attention after forming a solid base near its 20-day EMA and staging a sharp rebound.
The stock also broke above a key horizontal trendline resistance on the daily scale, with the breakout accompanied by robust volumes—lending strength to the move. In addition, momentum indicators and oscillators are aligned in favour of the bulls, signalling continued upside potential in the near term. Hence, we recommend accumulating the stock in the Rs 115–114 zone.
Strategy: Buy
Target: Rs 124
Stop-Loss: Rs 110
LIC Housing Finance | CMP: Rs 637
LIC Housing Finance has witnessed a breakout from a falling channel pattern on the daily chart, which is a bullish sign. This breakout was supported by strong volume participation, adding conviction to the move. Notably, a sizeable bullish candle was formed on the breakout day, further reinforcing the positive momentum. Currently, the stock is trading above its key moving averages, all of which are sloping upwards—indicating a strengthening trend.
Additionally, the daily RSI has surged above the 60 mark and remains in rising mode, which is considered a bullish signal from a momentum perspective. Hence, we recommend accumulating the stock in the Rs 638–634 zone.
Strategy: Buy
Target: Rs 690
Stop-Loss: Rs 615
Mahindra and Mahindra | CMP: Rs 3,196.5
Recently, M&M has formed a strong base near the 50-day EMA level and has since started moving higher. The reversal from the support zone is confirmed by relatively higher volume. Currently, the stock is trading above its crucial moving averages. These averages are in a rising trend and in the desired sequence, which suggests the trend is strong. The daily RSI is about to cross the 60 mark and is in a rising mode. Hence, we recommend accumulating the stock in the Rs 3,200–3,170 zone.
Strategy: Buy
Target: Rs 3,450
Stop-Loss: Rs 3,070
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Rupak De, Senior Technical Analyst at LKP Securities
Edelweiss Financial Services | CMP: Rs 120.8
Edelweiss Financial Services has moved higher after a prolonged downward consolidation on the daily timeframe, suggesting a resumption of the uptrend. The overall higher top–higher bottom structure remains intact, indicating strength in the trend. The RSI is in a bullish crossover on the daily chart, further supporting the upside momentum.
Strategy: Buy
Target: Rs 130
Stop-Loss: Rs 116.40
GMR Aiports | CMP: Rs 93.89
GMR Airports has moved higher after a brief consolidation on the daily timeframe, indicating rising optimism among traders. The overall higher top–higher bottom structure remains intact, indicating strength in the trend. The RSI is in a bullish crossover on the daily chart, further supporting the upside momentum. As long as the stock holds above Rs 91, the positive bias is likely to sustain.
Strategy: Buy
Target: Rs 100
Stop-Loss: Rs 91
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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