The benchmark indices recorded a historic high and closed the session with gains exceeding 3 percent on June 3, with about 1,496 shares advancing and 825 shares declining on the NSE. The market sentiment is likely to be positive in the coming sessions. Here are some trading ideas for the near term.
Mehul Kothari, DVP – Technical Research at Anand Rathi
Dalmia Bharat | CMP: Rs 1,858
After peaking near the Rs 2,060 mark on April 4, 2024, Dalmia Bharat experienced a significant downturn, with a decline of approximately 360 rupees, equating to roughly 17-18 percent. However, in the subsequent two trading sessions, Dalmia Bharat demonstrated resilience by avoiding further drops and instead reversed around the middle Bollinger band. Notably, in the prior trading session, there was considerable buying activity observed at lower price levels, suggesting investor interest in purchasing the stock at these levels.
From a technical perspective, the daily DMI (Daily Movement Index) indicator has given a bull cross, indicating a potential shift in momentum and presenting an attractive buying opportunity. Consequently, traders are advised to consider buying Dalmia Bharat within the range of Rs 1,830-1,860, with an anticipated upside target of Rs 2,000 and a stop-loss placed at Rs 1,765 based on a daily closing price.
Strategy: Buy
Target: Rs 2,000
Stop-Loss: Rs 1,765
UPL | CMP: Rs 528
After a period of consolidation in the approximate range of Rs 505-530, UPL has successfully broken out of a bearish trendline that had persisted for five months. The stock is now comfortably maintaining its position above this trendline, indicating a strong upward movement. From an indicator perspective, the weekly Stochastics has given a bull cross near 60 levels, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of Rs 520-530. The target for this upward move is set at Rs 580, with a stop-loss placed at Rs 498 based on a daily closing price.
Strategy: Buy
Target: Rs 580
Stop-Loss: Rs 498
Aether Industries | CMP: Rs 814
Following a correction of roughly 60 rupees, equating to a notable 7 percent downturn, Aether Industries has shifted its course away from the prior support mark of Rs 800. This support level notably coincides with the lower Bollinger band, implying a potential rebound, particularly given the bullish crossover on the stochastic indicator on the daily scale, signifying an appealing opportunity.
Consequently, investors are advised to contemplate purchasing within the range of Rs 805-820, envisioning an upward trend with a target price of Rs 875. To manage risk effectively, it is recommended to implement a stop-loss order near Rs 780, centered on daily closing figures, to mitigate potential losses.
Strategy: Buy
Target: Rs 875
Stop-Loss: Rs 780
Jay Thakkar, Vice President & Head of Derivatives and Quant Research
Reliance Industries | CMP: Rs 3,021
Reliance has provided a breakout from the falling channel with a clear bullish crossover in its momentum indicator MACD (Moving Average Convergence Divergence) on both the hourly and daily charts. The stock is now likely to see good support in the Rs 2,980 to Rs 2,950 range.
Strategy: Buy
Target: Rs 3,200, Rs 3,260
Stop-Loss: Rs 2,950
UltraTech Cement | CMP: Rs 10,470
UltraTech has provided a breakout from sideways consolidation with a bullish crossover on its momentum indicator MACD.
Strategy: Buy
Target: Rs 11,000, Rs 11,200
Stop-Loss: Rs 10,100
Bajaj Finance | CMP: Rs 6,916
Bajaj Finance seems to have completed the right shoulder of the Bullish Head and Shoulders pattern. Currently, it has taken good support at the lower Bollinger band and completed the right shoulder. The move prior to this was an impulse move on the upside, hence the probability of an upside is higher.
Strategy: Buy
Target: Rs 7,250, Rs 7,400
Stop-Loss: Rs 6,744
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
ABB India | CMP: Rs 8,728
ABB India is displaying classical bullish momentum and forming a Flag pattern on the daily chart. The overall structure is highly attractive, as it is trading above all its moving averages. The RSI (Relative Strength Index) is favourably positioned, and the MACD is reinforcing the current strength. On the upside, Rs 9,000 is the immediate resistance. Breaking this level could lead to a rise towards Rs 9,500+ in the near term. On the downside, Rs 8,100 is a key support level in case of any correction.
Strategy: Buy
Target: Rs 9,604
Stop-Loss: Rs 8,100
J Kumar Infraprojects | CMP: Rs 775
J Kumar Infraprojects is emerging from a Symmetrical Triangle pattern formation on the daily chart while on a weekly basis it has witnessed a breakout of a Bullish Flag formation with strong volume. The overall structure is very lucrative as it trades above all its important moving averages. On the upside, Rs 800 is an immediate resistance area; above this, we can expect a run-up towards Rs 850+ levels in the near term. On the downside, Rs 700 is major support for any correction. The momentum indicator RSI is also positively poised, whereas MACD is supporting the current strength.
Strategy: Buy
Target: Rs 884
Stop-Loss: Rs 700
JSW Energy | CMP: Rs 659
JSW Energy has witnessed a breakout of a Triangle pattern formation on the daily chart. It has formed a base at around Rs 590-600 levels. The structure of the counter is very lucrative, as it is trading above all of its moving averages. On the upside, Rs 700 is an immediate psychological resistance level; above this, we are expecting a move towards the Rs 740+ level. On the downside, Rs 600 is a major support, and below this, Rs 590 is the next important support.
Strategy: Buy
Target: Rs 744
Stop-Loss: Rs 590
Indus Towers | CMP: Rs 364
Indus Towers is emerging from a prolonged consolidation phase on the daily chart. On the weekly chart, it has broken out of a Bullish Flag pattern accompanied by significant volume. It has retested its last breakout level at around Rs 320 and started a new leg of the rally towards Rs 400. The overall structure is highly attractive as the stock is trading above all key moving averages. On the upside, Rs 380 is an immediate resistance level. Surpassing this, we can anticipate a rally towards Rs 400+ levels in the near term. On the downside, Rs 330 serves as a major support level for any potential correction. The RSI is positively positioned, and the MACD supports the current strength.
Strategy: Buy
Target: Rs 408
Stop-Loss: Rs 330
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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