The benchmark indices corrected for another session on February 6, with the Nifty 50 falling by 93 points amid caution ahead of the RBI MPC's interest rate decision on February 7. The market breadth was in favour of bears, with a total of 1,404 shares experiencing a correction, compared to 1,164 shares rising on the NSE. The market may consolidate further and take cues from the RBI policy for further direction. Below are some trading ideas for the near term:
Mandar Bhojane, Equity Research Analyst at Choice Broking
HDFC Bank | CMP: Rs 1,743.85
HDFC Bank has recently formed a rounding bottom pattern on the daily chart, indicating a potential breakout and a shift in market sentiment. The price is consolidating just below the breakout level, suggesting strong bullish momentum. A notable increase in trading volume further supports the possibility of an upward move. The Relative Strength Index (RSI) is at 60.15, trending upwards and reflecting strengthening bullish momentum. Additionally, the Stochastic RSI has shown a positive crossover, reinforcing the bullish outlook. These technical indicators suggest that the stock is gaining momentum for a potential rally.
A decisive close above Rs 1,750 could pave the way for short-term targets of Rs 1,800 and Rs 1,860. On the downside, immediate support is at Rs 1,715, offering an attractive buying opportunity on dips.
Strategy: Buy
Target: Rs 1,800, Rs 1,860
Stop-Loss: Rs 1,680
Shriram Finance | CMP: Rs 566.35
Shriram Finance is on the verge of breaking out from a falling trendline on the daily chart. This breakout, accompanied by a notable increase in trading volume, indicates strong buying interest from lower levels and the potential for further upward momentum. Technical indicators support a bullish outlook. The RSI is trending upwards at 53.85, reflecting strengthening momentum, while the Stochastic RSI has confirmed a positive crossover, signaling additional upside potential.
If the price sustains above Rs 580, it could open the door for short-term targets of Rs 620 and Rs 640. On the downside, immediate support is at Rs 545, presenting a potential buying opportunity on dips.
Strategy: Buy
Target: Rs 620, Rs 640
Stop-Loss: Rs 540
HDFC Life Insurance Company | CMP: Rs 632
HDFC Life Insurance is approaching a potential breakout from the descending trendline on the daily chart, signaling a possible bullish shift. The stock has been consolidating near the breakout level, suggesting accumulation by buyers. A notable increase in trading volume indicates growing buying interest, supporting the likelihood of continued upward momentum.
Technical indicators reinforce this positive outlook. The RSI is rising at 53.67, reflecting strengthening momentum, while the Stochastic RSI has confirmed a positive crossover, further enhancing the potential for an upward move. If the stock sustains above Rs 640, it could trigger a rally toward near-term targets of Rs 685 and Rs 700. On the downside, Rs 615 serves as a crucial support level, presenting a favourable buying opportunity on dips.
Strategy: Buy
Target: Rs 685, Rs 700
Stop-Loss: Rs 605
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Axis Bank | CMP: Rs 1,020.7
Axis Bank is forming a higher high structure on the daily chart, showing a strong uptrend. Support levels are shifting higher, which indicates strength. The stock has broken out of its range and is trading above its 20-day EMA, suggesting that the bullish momentum is intact.
Strategy: Buy
Target: Rs 1,080
Stop-Loss: Rs 990
Kotak Mahindra Bank | CMP: Rs 1,916
Kotak Mahindra Bank is on the verge of a consolidation breakout after the last 15 trading sessions. It is trading above its short-term moving averages and holding strong at higher levels despite market volatility. The momentum indicator RSI is also positively placed, indicating strength and potential for further upside.
Strategy: Buy
Target: Rs 2,010
Stop-Loss: Rs 1,860
Drumil Vithlani, Technical Research Analyst at Bonanza
Sundaram Finance | CMP: Rs 4,667.25
Sundaram Finance has been forming higher lows, indicating a potential bullish reversal. The stock faces strong resistance at Rs 4,715-4,720. Trading above the 20 and 50-day EMAs (Exponential Moving Average) suggests a positive bias. A breakout above Rs 4,720 could trigger an upward rally, while Rs 4,515 serves as strong support. With sustained buying interest and a favourable technical structure, the stock is poised for further upside as long as it holds above key support levels.
Strategy: Buy
Target: Rs 5,100
Stop-Loss: Rs 4,515
Ujjivan Small Finance Bank | CMP: Rs 38.65
Ujjivan Small Finance Bank is showing strong bullish momentum with rising trading volumes, indicating increased investor interest. The stock has broken above the key resistance zone of Rs 35-36, which now acts as support. Technical indicators support the uptrend, suggesting continued strength. With sustained volume and positive signals, the stock is likely to move higher in the near term. Investors should watch these levels closely, as the overall outlook remains positive for further gains.
Strategy: Buy
Target: Rs 42, Rs 45
Stop-Loss: Rs 36
PNB Housing Finance | CMP: Rs 907
PNB Housing Finance has formed a double bottom pattern, signaling a potential trend reversal. The stock is near a breakout level around Rs 920, aligning with a falling trendline resistance. Trading above key EMAs, the trend remains bullish. A breakout above Rs 920 could confirm the pattern, potentially driving the stock toward Rs 1,000. Strong support is placed at Rs 870, limiting downside risk. The overall technical setup indicates a positive outlook, with potential upside momentum upon a successful breakout.
Strategy: Buy
Target: Rs 1,000
Stop-Loss: Rs 870
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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