The benchmark indices closed the rangebound session with a marginal loss on February 18. The market breadth remained weak, with a total of 2,006 shares declining against 601 shares advancing on the NSE. Rangebound trading is expected to continue in the upcoming sessions amid elevated volatility. Below are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
Tech Mahindra | CMP: Rs 1,705
Tech Mahindra has given a breakout of its symmetrical triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, signaling that the structure of the counter indicates further bullish momentum from the current levels. Unless it is trading below Rs 1,660, positional traders can retain an optimistic stance and look for a target of Rs 1,780.
Strategy: Buy
Target: Rs 1,780
Stop-Loss: Rs 1,660
Macrotech Developers | CMP: Rs 1,162.55
After the sharp up moves, Macrotech Developers (LODHA) witnessed profit booking at higher levels. Post the recent selloff, the downward momentum had stopped. On daily charts, the counter has found support near its important retracement zone. This formation suggests a revival of the uptrend from the current levels in the coming horizon.
Strategy: Buy
Target: Rs 1,250
Stop-Loss: Rs 1,120
Zomato | CMP: Rs 223.31
After a short-term price correction, Zomato is available near its multiple support zones. The decent volume activity near the support zone indicates that the downside is restricted. Therefore, the stock is expected to rebound and witness bullish momentum from the current levels, providing a favourable risk and reward perspective.
Strategy: Buy
Target: Rs 240
Stop-Loss: Rs 212
Dhupesh Dhameja, Derivative Research Analyst at Samco Securities
Ajanta Pharma | CMP: Rs 2,756.4
Ajanta Pharma shows a potential trend reversal after taking support from the descending trendline. The stock has been in a corrective phase but has found strong support near the Rs 2,500-2,600 zone, bouncing back with significant volume. A breakout above Rs 2,770, with sustained buying interest, could trigger further upside. The recent green candle with high volume suggests fresh accumulation, highlighting bullish sentiment. The stock is holding above the 9 EMA (Exponential Moving Average). Hence, based on the technical structure, one can initiate a long position at the CMP (current market price).
Strategy: Buy
Target: Rs 3,080
Stop-Loss: Rs 2,620
InterGlobe Aviation | CMP: Rs 4,345.55
InterGlobe Aviation (IndiGo) has rebounded from lower levels, and the recent piercing line candlestick pattern suggests a bullish outlook. The stock continues to respect its rising trendline. The MACD (Moving Average Convergence Divergence) is hovering near a potential bullish crossover, reinforcing the likelihood of upward continuation. The next resistance lies at Rs 4,400, and a breakout above this level could propel the stock higher.
The stock is currently trading comfortably above its 9-day and 20-day moving averages (DMA). The daily RSI, which previously displayed positive divergence, is now holding firmly above the 50 line. The surge in price, accompanied by rising volumes, further confirms the upward momentum. Hence, based on the technical structure, one can initiate a long position at CMP.
Strategy: Buy
Target: Rs 4,720
Stop-Loss: Rs 4,170
Ashish Kyal, CMT, Founder and CEO at Waves Strategy Advisors
JSW Steel | CMP: Rs 978.8
In the previous session, JSW Steel managed to close in the green despite major indices falling, which is a positive sign. Prices have consecutively protected their prior day's low since February 3, keeping the daily bias on the side of the bulls. Moreover, prices are trading near their previous swing high level of Rs 985.
A decisive break above it can further intensify buying pressure in the stock. Recently, prices took support from the Ichimoku cloud and reversed on the upside, which further supports our stance. Also, RSI is trading at 62 levels, which gives prices the space to trend further. In summary, the current trend for JSW Steel is positive. A break above Rs 985 can lead to a trending move towards Rs 1,025, followed by Rs 1,070 levels. On the downside, Rs 943 is the nearest support to watch out for.
Strategy: Buy
Target: Rs 1,025, Rs 1,070
Stop-Loss: Rs 943
Phoenix Mills | CMP: Rs 1,600.15
Phoenix Mills has been trading within a symmetrical triangle pattern for the past few months. As of now, prices are trading in a narrow range of Rs 1,530 to Rs 1,625 over the past week. Recently, prices faced support from the trendline and are now moving towards the upper end of the range. Also, prices are trading near the mid-Bollinger bands. A decisive break above it, i.e., above Rs 1,625 (which also happens to be the upper end of the range), can trigger fresh buying.
If this happens, we can expect a move towards the previous swing high, which is near Rs 1,849 levels in the coming months. In summary, the current trend for Phoenix Mills is at a crucial juncture. A break above Rs 1,625 is necessary for fresh buying to emerge, with targets of Rs 1,690, followed by Rs 1,770. On the downside, Rs 1,546 is the nearest support to watch out for.
Strategy: Buy
Target: Rs 1,690, Rs 1,770
Stop-Loss: Rs 1,546
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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