Trade Spotlight: How should you trade Ultratech Cement, Birlasoft, Sonata Software, Hindustan Unilever, Bharat Electronics, and others on April 29?

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

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