Nifty 50 hit a new record closing high for four days in a row, closing 0.4 percent higher on June 18, with about 1,297 shares advancing and 1,054 shares declining on the NSE. The market is likely to remain in positive territory amid consolidation in the coming sessions. Here are some trading ideas for the near term:
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
MMTC | CMP: Rs 83.83
On the daily chart, MMTC closed with a significant gain of 10 percent in the previous session, producing a big bullish candle. Prices were previously moving in a rectangular range, indicating accumulation in the stock. In the previous session, the price closed above this trading range, i.e., above Rs 80.7 levels, which is considered a bullish breakout of the rectangular pattern.
It has also given a breakout of the upper end of the Bollinger Bands. If the price manages to do the same again, we can expect the bullish momentum to continue. Additionally, volumes are picking up, which is a good sign. In short, the trend for MMTC is bullish. Use dips towards Rs 82 as a buying opportunity with a target of Rs 87 as long as Rs 79 holds on the downside.
Strategy: Buy
Target: Rs 87
Stop-Loss: Rs 79
Asahi India Glass | CMP: Rs 669.55
Asahi India Glass has been moving higher recently and is in a strong uptrend. In the previous session, it closed with a massive gain of 8 percent, forming a bullish candle. The price closed above Rs 660 levels, confirming a breakout of the rounding bottom pattern. The price is trading above the Ichimoku Cloud, indicating that the short-term bias is bullish. In short, the trend for this stock is positive. Use dips towards Rs 650-660 as a buying opportunity for a move towards Rs 730-740 levels as long as Rs 630 holds on the downside.
Strategy: Buy
Target: Rs 730, Rs 740
Stop-Loss: Rs 630
IDFC | CMP: Rs 120.86
IDFC formed a large bullish candle in the previous session with more than twice its average volume, closing with a significant gain of 5.2 percent. On the daily outlook, prices faced support from the lower end of the channel on June 5, 2024, and reversed to the upside. With follow-up buying, we can expect a move towards the upper end of the channel near Rs 127 levels.
Additionally, prices closed above the Ichimoku Cloud, hinting at a trend change, but we need follow-up action for confirmation. In short, the short-term trend for IDFC looks positive. Use dips as a buying opportunity with a target of Rs 125 followed by Rs 127. On the downside, the closest support is placed at Rs 116 levels.
Strategy: Buy
Target: Rs 125, Rs 127
Stop-Loss: Rs 116
Riyank Arora, Technical Analyst at Mehta Equities
Wipro | CMP: Rs 491.85
Wipro has given a significant breakout above its anchor VWAP (volume weighted average price) resistance mark of Rs 480 and successfully closed above this level. The trading volume on Tuesday was nearly twice its average (30 days) volume, and the stock also surpassed its recent resistance mark of Rs 487.75, closing well above it. With the RSI (Relative Strength Index 14) near 64.80 showing an upward trend, the stock appears poised for a move towards a potential target of Rs 550 and above. A stop-loss should be set at Rs 470 to manage risk effectively on this trade for Wipro.
Strategy: Buy
Target: Rs 550
Stop-Loss: Rs 470
Gujarat Gas | CMP: Rs 635.25
Gujarat Gas has given a strong breakout above its recent resistance mark of Rs 620 on its daily timeframe charts. With surging volumes equivalent to its average (30 days) volume, the stock appears set for an upward move towards a potential target of Rs 700 and above. The RSI (14) around 70.70 indicates strong momentum, suggesting a likely robust up-move in the stock. A strict stop-loss should be set at Rs 600 to manage risk effectively on this trade for Gujarat Gas.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 600
Manappuram Finance | CMP: Rs 191.74
Manappuram Finance has given a strong breakout above its recent resistance mark of Rs 188.35 and successfully closed above this level. With the RSI (14) on the daily charts crossing the 60 mark, the momentum looks strong, and the stock appears ready for an upward move. A potential target of Rs 210 and above is likely as this rally extends, with a stop-loss set at Rs 184.40 to manage risk effectively. Volumes were nearly 1.5 times its average (30 days) in Tuesday's trading session.
Strategy: Buy
Target: Rs 210
Stop-Loss: Rs 184.40
ABB India | CMP: Rs 8,867
ABB India has given a strong breakout above its recent resistance mark of Rs 8,750 and is witnessing a pull-back on its technical charts. With the RSI (14) near the 66 mark and volumes in Tuesday's session almost equivalent to its average (30 days) volume, the risk-reward ratio favours buying. A stop-loss should be set at the Rs 8,450 mark for a potential upside target of Rs 9,500 and above for ABB.
Strategy: Buy
Target: Rs 9,500
Stop-Loss: Rs 8,450
Om Mehra, Technical Analyst at Samco Securities
Balkrishna Industries | CMP: Rs 3,345.60
Balkrishna stock retested its previous support after a Saucer pattern breakout and is now sustaining above the resistance of Rs 3,250. The daily RSI remains at the 74 level, indicating continued bullish momentum. Additionally, volume participation remains positive, aligning with the price rise. Based on the above technical structure, one can initiate a long position at CMP Rs 3,346 for a target price of Rs 3,600. The stop-loss can be kept at Rs 3,220.
Strategy: Buy
Target: Rs 3,600
Stop-Loss: Rs 3,220
Apollo Tyres | CMP: Rs 484.8
Apollo Tyres stock has established a sturdy base after a decent correction. It has formed a Morning Star pattern near its support zone. It remains above the 20-day Simple Moving Average (SMA) and is poised on the edge of a declining trendline, indicating a potential breakout. Based on the above technical structure, one can initiate a long position at CMP Rs 484.8 for a target price of Rs 530. The stop-loss can be kept at Rs 465.
Strategy: Buy
Target: Rs 530
Stop-Loss: Rs 465
Mahindra Holidays and Resorts India | CMP: Rs 434.95
Mahindra Holidays stock continued its bullish momentum, surpassing the immediate resistance of Rs 425. The strong base is placed at the Rs 430 level. It has the potential for a breakout above the Rs 440 level, which could further fuel buying interest. Based on the above technical structure, one can initiate a long position at CMP Rs 435 for a target price of Rs 470. The stop-loss can be kept at Rs 410.
Strategy: Buy
Target: Rs 470
Stop-Loss: Rs 410
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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