Trade Spotlight: How should you trade TCS, Chemfab, Godrej Consumer Products, TTK Prestige, and others on Wednesday?

Top Buy Ideas for short term

The market closed near 24,500 on the Nifty 50, down just 30 points after recouping over 400 points from the day's low on July 23, effectively absorbing the selling pressure following the budget speech. About 1,410 shares declined, while 933 shares advanced on the NSE. Experts see the Nifty 50 moving towards the 24,600-24,700 zone in the immediate term, as long as it holds 24,400 as a support. Here are some trading ideas for the near term:

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Avanti Feeds | CMP: Rs 645.35

Avanti Feeds jumped by more than 10 percent during the day on July 23 after Union Finance Minister Nirmala Sitharaman announced that the central government would encourage financing and marketing for shrimp farming via the National Bank for Agriculture and Rural Development (NABARD).

Despite the sharp rise, prices failed to close above the consolidated zone. A close above Rs 650 is essential for the bullish momentum to continue. The MACD (Moving Average Convergence Divergence) has shown a bullish crossover, but confirmation is still pending, requiring follow-up buying. The trend for Avanti Feeds is positive. A break above Rs 650 can lift the price higher towards Rs 680, followed by Rs 700, as long as Rs 625 holds on the downside.

Strategy: Buy

Target: Rs 680, Rs 700

Stop-Loss: Rs 625

Godrej Consumer Products | CMP: Rs 1,516.70

Godrej Consumer Products rallied around 3 percent on Tuesday. The Nifty FMCG index has rallied more than 10 percent since the beginning of July 2024. The budget announcement towards improving rural demand has fueled the rally in FMCG stocks.

Prices gave a breakout of the Rounding Bottom pattern in the previous session, which is a positive sign. Prices also broke out of the upper end of the Bollinger Bands, showcasing a bullish trend. The KST (Know Sure Thing) indicator has turned above the signal line and continues to trade above zero levels, indicating good momentum. The overall trend of the stock is bullish. Use dips as a buying opportunity with a target of Rs 1,580 followed by Rs 1,620. On the downside, Rs 1,450 can act as crucial support.

Strategy: Buy

Target: Rs 1,580, Rs 1,620

Stop-Loss: Rs 1,450

Chemfab Alkalies | CMP: Rs 787.85

Chemfab Alkalies has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a massive gain of 9.17 percent. Prices formed a bullish candle and closed above Rs 744, confirming a breakout of the Rounding Bottom pattern. Prices continue to trade above the Ichimoku cloud, indicating that the short-term bias is likely to remain bullish. The trend for this stock is positive. Use dips towards Rs 770-780 as a buying opportunity for a move towards Rs 850-860 levels, as long as Rs 740 holds on the downside.

Strategy: Buy

Target: Rs 850, Rs 860

Stop-Loss: Rs 740

Dhupesh Dhameja, Technical Analyst at SAMCO Securities

Tata Consultancy Services | CMP: Rs 4,302.35

TCS has recently achieved a significant breakout from its all-time high of Rs 4,254 and is currently sustaining above this level. On the daily chart, the stock has completed a Rounding Base chart pattern with a neckline at Rs 4,250. Price trading above its key averages on the daily chart indicates strong bullish sentiment. The weekly chart reveals a multi-year breakout, with the stock trading above its 10-week moving average, further underscoring the bullish trend. The RSI stands at 72 on the daily chart and 66 on the weekly chart, confirming strong momentum. We recommend buying the stock at the current market price of Rs 4,311. We anticipate an upside potential with target prices ranging from Rs 4,500 to 4,650. The bullish outlook remains intact as long as the stock price stays above Rs 4,170.

Strategy: Buy

Target: Rs 4,500, Rs 4,650

Stop-Loss: Rs 4,170

Uno Minda | CMP: Rs 1,011.35

Uno Minda has recently experienced a substantial rally, nearly doubling from its previous low of Rs 600 to a high of Rs 1,200 in July. It has now completed a retracement to the 0.50 Fibonacci extension level at Rs 950, finding strong support at this point.

The stock performed a fake-out from its 50-day moving average. On the weekly chart, it finds robust support at the 10-week moving average. The RSI is above 60 on the weekly chart, while the daily chart shows RSI support at the 40 level. Considering these factors, we recommend buying at the current market price of Rs 1,009.25. We foresee an upside potential with target prices between Rs 1,100 and Rs 1,180. The bullish outlook remains valid as long as the stock price stays above Rs 930.

In the Union Budget, the government increased the Production Linked Incentive (PLI) scheme for automobiles and auto components to Rs 3,500 crore for FY25, up from Rs 604 crore in FY24. The reduced allocation for FAME is expected to benefit stocks in the future.

Strategy: Buy

Target: Rs 1,100, Rs 1,180

Stop-Loss: Rs 930

TTK Prestige | CMP: Rs 914.8

TTK Prestige is trading near its 52-week high of Rs 918 and has recently broken out of its re-accumulation pattern following a strong markup phase. The stock is trading firmly above all key moving averages on the daily charts. After being confined within a range of Rs 905-860 with low volume, the stock has broken out of this range with significant volume. The RSI stands above 70 on both daily and weekly charts, highlighting strong momentum. The stock has regained and sustained levels above Rs 900 after nearly two years, indicating building strength. We recommend buying at the current market price of Rs 916 and accumulating up to Rs 900 levels. We anticipate an upside potential with target prices ranging from Rs 965 to Rs 990. The bullish outlook remains intact as long as the stock price stays above Rs 845.

Strategy: Buy

Target: Rs 965, Rs 990

Stop-Loss: Rs 845

Riyank Arora, Technical Analyst at Mehta Equities

Walchandnagar Industries | CMP: Rs 326.45

Walchandnagar Industries is showing a strong breakout above its January 2010 highs, gaining momentum along with a significant surge in volumes for July 2024. The RSI (14) on the monthly timeframe is around 78.91 and trending upwards from lower levels, indicating potential for further growth. We expect the stock to reach targets of Rs 590 and Rs 600, with an ultimate target around Rs 1,000.

Strategy: Buy

Target: Rs 590, Rs 600

Stop-Loss: Rs 290

Coforge | CMP: Rs 6,179.35

Coforge has successfully broken above its recent swing high resistance level of Rs 6,143.90 and is holding above this level. With increased trading volumes and the RSI (14) approaching 70, we anticipate targets of Rs 6,650 and Rs 6,700. The positive outlook on IT stocks and Coforge's strong technical structure suggest that the stock will continue to gain momentum.

Strategy: Buy

Target: Rs 6,650, Rs 6,700

Stop-Loss: Rs 5,800

Persistent Systems | CMP: Rs 4,810

Persistent Systems has broken above its all-time high resistance level and is consolidating well above this mark. With trading volumes nearly double the 30-day average and a rising RSI (14), we expect targets of Rs 5,100 and Rs 5,200. A stop-loss should be set at Rs 4,490 to manage risk effectively. With the IT index being bullish and Persistent Systems being one of the best in the pack, we expect the stock to perform well.

Strategy: Buy

Target: Rs 5,100, Rs 5,200

Stop-Loss: Rs 4,490

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.