Bulls staged a strong comeback on April 28, driving the benchmark indices higher by more than 1 percent. However, similar strength was not seen in the market breadth. About 1,342 shares advanced compared to 1,235 declining shares on the NSE. With this strong bounce back, the overall trend remains healthy, despite the potential for continued consolidation. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Birlasoft | CMP: Rs 390
Birlasoft is showing signs of a 427-day cycle, which somewhat aligns with Gann’s Square of 144 (144 × 3 = 432), indicating a potential time-based reversal. Currently, the stock has reversed from its major support at Rs 330, coinciding with the previous breakout zone from May 2023. This price-time confluence, combined with a hidden bullish divergence on the weekly RSI (Relative Strength Index), strengthens the case for a possible bottom formation. Consider entering long positions in the Rs 380–390 zone, with an upside target of Rs 485.
Strategy: Buy
Target: Rs 485
Stop-Loss: Rs 330
Sonata Software | CMP: Rs 362.75
At the current juncture, Sonata Software is trading near a key Fibonacci retracement cluster, where 0.886 retracement from the May 2022 low, 0.707 retracement from the March 2020 low, and 0.618 retracement from the October 2001 low, converging around the Rs 291–330 range. The current price is approximately Rs 362. A bullish divergence is observed on the weekly chart, suggesting potential upside. The confluence of major retracements, along with positive momentum signals, strengthens the bullish outlook. Consider entering long positions in the Rs 355–365 zone, with an upside target of Rs 430.
Strategy: Buy
Target: Rs 430
Stop-Loss: Rs 325
Hindustan Unilever | CMP: Rs 2,318.6
Hindustan Unilever recently experienced a pullback after breaking above the Rs 2,300 levels and is currently trading around Rs 2,330. On April 24, the stock briefly tested the Rs 2,300 mark post its results announcement. Despite the dip, the overall chart structure remains bullish, with the 2x target from the previous consolidation zone still intact. Consider entering long positions between Rs 2,300–2,330, with a target of Rs 2,550.
Strategy: Buy
Target: Rs 2,550
Stop-Loss: Rs 2,195
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Reliance Industries Futures | CMP: Rs 1,371.4
Reliance has cleared its crucial hurdle at Rs 1,300. Above this level, Call unwinding was witnessed, supporting the stock’s upward movement. There has been continuous short covering in the futures segment, following the lifetime high Open Interest (OI) in short positions.
A positive divergence is observed, as the last two times the stock hit a 52-week low, the OI declined, suggesting short covering and limited downside. The stock has now recovered sharply and is expected to perform well in the short to medium term. Buy Reliance Industries Futures on dips in the Rs 1,340–1,350 range.
Strategy: Buy
Target: Rs 1,400, Rs 1,450
Stop-Loss: Rs 1,285
Bharat Electronics Futures | CMP: Rs 307.45
Bharat Electronics Futures has moved above its 20-day VWAP of Rs 293.7, hence a stop-loss at Rs 293 is recommended. The stock previously attempted to break past its swing highs on two occasions but lacked momentum, primarily due to long unwinding. However, the reduction in OI along with the price indicates no short buildup, making the futures positioning light and favoring upside.
Options data shows that the Rs 310 strike holds the highest Call base, suggesting short-term resistance. A move above this level may result in further upward momentum, as the overall trend favours the bulls. Buy Bharat Electronics Futures in the Rs 308–Rs 304 range.
Strategy: Buy
Target: Rs 322, Rs 330
Stop-Loss: Rs 293
UltraTech Cement Futures | CMP: Rs 12,213
The cement sector has shown strong resilience during recent market declines, with UltraTech Cement outperforming the Nifty. The stock has broken out of a long consolidation, accompanied by a long build-up, indicating a positive short- to medium-term outlook.
While the stock is trading above its 20-day VWAP, it is still below its maximum pain level, implying the possibility of sideways movement before the uptrend resumes. However, based on its futures positioning, the stock is likely to trend higher eventually. Buy UltraTech Cement Futures in the Rs 11,900–Rs 12,300 range.
Strategy: Buy
Target: Rs 13,000, Rs 13,500
Stop-Loss: Rs 11,400
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.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
