Bulls took a breather after running for six consecutive sessions, as the Nifty 50 closed moderately lower on profit booking on September 27, with equal market breadth. On the NSE, approximately 1,243 shares declined, while 1,231 shares advanced. The index is likely to consolidate further in the coming sessions before the start of a new leg of an upmove. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Vedanta | CMP: Rs 513
Vedanta is in a strong uptrend across all time frames, reflecting bullish sentiment. On the weekly time frame, the stock decisively broke out of the past five-month "consolidation range" (Rs 480-400) at the Rs 480 level on a closing basis, indicating a strong breakout. This breakout is accompanied by huge volumes, indicating increased participation. The daily and weekly "Bollinger Bands" buy signals show this heightened participation. The stock is well-positioned above its 20, 50, 100, and 200-day SMA (Simple Moving Average), and these averages are also inching up along with the price rise, reaffirming the bullish trend. The daily, weekly, and monthly strength indicator RSI (Relative Strength Index) is in positive terrain, justifying rising strength across all time frames. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 555-600 and a downside support zone of Rs 480-470 levels.
Strategy: Buy
Target: Rs 555, Rs 600
Stop-Loss: Rs 480
Westlife Foodworld | CMP: Rs 930.5
On the daily and weekly time frames, Westlife Foodworld has formed higher tops and bottoms, indicating a trend reversal. The stock has also confirmed a one-year "down-sloping trendline" breakout at the Rs 900 level, accompanied by huge volumes. The daily and weekly "Bollinger Bands" buy signals indicate increased participation. The stock is well-positioned above its 20, 50, 100, and 200-day SMA, and these averages are also rising along with the price, reaffirming the bullish trend. The daily, weekly, and monthly RSI is in positive terrain, reflecting rising strength across all time frames. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 1,000-1,095 and a downside support zone of Rs 900-875 levels.
Strategy: Buy
Target: Rs 1,000, Rs 1,095
Stop-Loss: Rs 900
Dr Reddy's Laboratories | CMP: Rs 6,750
On the weekly and monthly time frames, Dr. Reddy's Laboratories is in a strong uptrend, forming a series of higher tops and bottoms. With the recent swing low (Rs 6,485), the stock has recaptured its 100-day SMA (Rs 6,438) and rebounded sharply, indicating a strong support zone. The daily and monthly RSI is in positive terrain, signaling rising strength. Investors should buy, hold, and accumulate this stock, with an expected upside of Rs 7,000-7,150 and a downside support zone of Rs 6,600-6,490 levels.
Strategy: Buy
Target: Rs 7,000, Rs 7,150
Stop-Loss: Rs 6,600
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Canara Bank | CMP: Rs 113.1
Canara Bank has showcased a strong resurgence from the pivotal support of the 200-day SMA on the daily time frame chart and has broken out of a sloping channel. The price movement has been backed by a noticeable increase in trading volumes, suggesting robust sentiment. Going forward, the breakout on the daily chart is likely to trigger bullish traction in the comparable period. From a technical perspective, the indicators have rebounded, witnessing a positive crossover, which signals a bullish trend in the stock. Hence, we recommend buying Canara Bank around Rs 110.
Strategy: Buy
Target: Rs 122
Stop-Loss: Rs 104
Coal India | CMP: Rs 516.1
Coal India is in a stellar uptrend, moving within a cycle of higher highs and higher lows on a broader time frame. In the last session, the stock rebounded from the lower band of its rising channel, coinciding with the support of the 100 DEMA, continuing its primary trend. Additionally, the MACD (Moving Average Convergence Divergence) signals strong momentum, suggesting a potential upside into uncharted territory for the counter. Hence, we recommend buying Coal India around Rs 515-510.
Strategy: Buy
Target: Rs 574
Stop-Loss: Rs 486
Tata Steel | CMP: Rs 166.55
Tata Steel has demonstrated impressive gains in the recent trading sessions from the short-term EMAs (Exponential Moving Averages), which were backed by robust volumes. The stock is comfortably hovering above all its significant EMAs on the daily time frame and has retraced over 50% of the corrective phase. Furthermore, the recent upward momentum has been supported by positive crossovers of the moving averages, suggesting the uptrend will continue. Therefore, we recommend buying Tata Steel around Rs 164-162.
Strategy: Buy
Target: Rs 180
Stop-Loss: Rs 154
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
Chambal Fertilisers and Chemicals | CMP: Rs 525.25
The weekly timeframe chart of Chambal Fertilisers and Chemicals indicates a larger range-bound action over the past few months. After a false downside breakout attempt at Rs 480 last week, the stock price has bounced back. The overall weekly chart pattern suggests a bullish "Flag" type pattern, and the stock price is expected to break above the neckline of the pattern at Rs 525 in the near term. The volume and RSI patterns indicate more upside potential ahead for the stock price.
Strategy: Buy
Target: Rs 575
Stop-Loss: Rs 495
Shree Renuka Sugars | CMP: Rs 53.05
The attached weekly time frame chart of Shree Renuka Sugars shows a sustainable upside bounce from last week. The stock has moved above the crucial intermediate trendline around Rs 51 on Friday. The stock is placed above the key moving averages of the weekly 10/20 period EMA. Volume has started to expand during the upside breakout, and the weekly RSI indicates positive momentum.
Strategy: Buy
Target: Rs 59
Stop-Loss: Rs 49
Polycab India | CMP: Rs 7,054.8
After displaying a narrow range movement over the last couple of months, the stock price of Polycab India has shifted into a sustainable upside bounce last week. The stock price attempted a decisive upside breakout of the upper range of consolidation around the Rs 6,950 level. A sustainable upmove from here could lead to a sharp trended rally. The stock has moved above the hurdles of the weekly 10/20 period EMA and closed higher. Volume has started to expand during the upside breakout, and the weekly RSI signals a positive trend.
Strategy: Buy
Target: Rs 7,700
Stop-Loss: Rs 6,650
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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