The benchmark indices turned lower after a day of recovery and a positive close, with the Nifty 50 declining by 0.6 percent amid escalating tensions between India and Pakistan on May 8. The market breadth was weak, with 1,812 shares declining versus 729 advancing shares on the NSE. The market is expected to see further weakness if it decisively breaks the previous day's low. Below are some short-term trading ideas to consider:
Mandar Bhojane, Equity Research Analyst at Choice Broking
Zensar Technologies | CMP: Rs 720.75
Zensar Technologies is on the verge of breaking out from an Inverted Head and Shoulders pattern — a classic bullish reversal signal. The breakout is supported by increasing trading volumes, along with the formation of higher highs and higher lows, reinforcing the strength of the ongoing uptrend. The Relative Strength Index (RSI) stands at 55.34 and is trending upwards, indicating strengthening bullish momentum.
On the downside, immediate support is seen around the Rs 700 level, presenting a buying opportunity on dips. To manage risk, traders are advised to place a stop-loss at Rs 685. If the bullish momentum continues, the stock could potentially rally towards Rs 800 and Rs 840 in the short term.
Strategy: Buy
Target: Rs 800, Rs 840
Stop-Loss: Rs 685
Orient Electric | CMP: Rs 235.62
Orient Electric is showing strong technical potential. The stock has recently broken out of a descending trendline and has since retested the breakout level, which is a positive sign of strength. Now, it appears to be on the verge of a fresh breakout, supported by significant volume, hinting at renewed buying interest.
Technically, the stock is trading above all key EMAs, indicating a solid uptrend. The RSI stands at 59.62 and is trending upward, further reinforcing the bullish momentum. A decisive close above Rs 245 would act as a major breakout confirmation and could open the door for a sharp upward move in the short term.
On the downside, Rs 230 serves as immediate support, making it a favourable zone for dip-buying. If momentum sustains post-breakout, Orient Electric has the potential to rally toward Rs 260 and Rs 270, making it a compelling opportunity for short-term traders and swing investors.
Strategy: Buy
Target: Rs 260, Rs 270
Stop-Loss: Rs 220
APL Apollo Tubes | CMP: Rs 1,663.3
APL Apollo Tubes has recently broken out of a descending triangle pattern with strong volume on the weekly chart, indicating a potential trend reversal. The stock is on the verge of breaking out, signaling strong bullish momentum in both the short and long term. A decisive close above Rs 1,670 will reinforce the uptrend, paving the way for further gains. The RSI at 59.48 suggests positive momentum with room for upside movement.
On the downside, immediate support is placed at Rs 1,600, which could act as a buying zone on dips. A prudent stop-loss at Rs 1,480 is recommended to manage risk. If the momentum sustains, short-term and long-term targets of Rs 1,900 and Rs 2,000 could be achieved. Traders should closely monitor price action and volume to confirm the breakout.
Strategy: Buy
Target: Rs 1,900, Rs 2,000
Stop-Loss: Rs 1,570
Om Mehra, Technical Research Analyst at Samco Securities
ITC | CMP: Rs 430.6
ITC has resumed its upward momentum after a brief consolidation phase, closing above key short-term moving averages, including the 9 EMA and 20 SMA. This recovery has been marked by a stable sequence of higher highs and higher lows, reflecting buying interest. The stock has also managed to reclaim its 20-day SMA. The short-term support remains near Rs 424–426. The bullish structure remains intact, as the weekly chart also displays a positive trend.
The daily RSI is trending near the 58 level, maintaining positive momentum without approaching overbought territory. The price action suggests the potential for a steady move higher, provided it sustains above Rs 424. Hence, based on the technical structure, one can initiate a long position in ITC at the CMP (current market price).
Strategy: Buy
Target: Rs 448
Stop-Loss: Rs 422
CRISIL | CMP: Rs 5,010.3
CRISIL has registered a decisive breakout from its recent consolidation zone, with a sharp upmove of over 6.6 percent on strong volumes in the previous session, indicating a renewed bullish outlook. The stock has broken a key resistance near Rs 4,840 and is now trading comfortably above all major moving averages, including the 9-day EMA. The breakout is also accompanied by a strong bullish candle that confirms follow-through buying and a shift in momentum.
The indicators strengthen the bullish tone as the RSI has surged above 65, while the MACD (Moving Average Convergence Divergence) is in a wide positive crossover, and signal lines are sloping upward. The stock has also closed above the supertrend resistance band, signaling a potential trend reversal in favour of the bulls. The stock’s ongoing formation of a saucer pattern provides an additional bullish setup. Hence, based on the technical structure, one can initiate a long position in CRISIL at the CMP.
Strategy: Buy
Target: Rs 5,350
Stop-Loss: Rs 4,840
Timken India | CMP: Rs 2,780.9
Timken India has resumed its upward trajectory after a brief correction, with the stock posting a strong green candle and closing near the day's high. The stock has reclaimed the 9 EMA and 20 SMA, which confirms a bullish realignment. The recent price action has broken past a near-term congestion zone. The stock has also registered a higher high and lower low formation, strengthening the trend.
The daily RSI has crossed the 60 mark with a bullish slope, indicating rising momentum, while the volume has seen a notable uptick, supporting the price expansion. The recent price recovery from sub-Rs 2,500 levels and breakout above the Rs 2,750 zone displays additional confirmation of a sustained move on the upside. The rising stock delivery percentage could contribute to the trend's continuation. One can initiate a long position in Timken at the CMP.
Strategy: Buy
Target: Rs 2,960
Stop-Loss: Rs 2,655
Chandan Taparia, Head Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Hindustan Aeronautics | CMP: Rs 4,422.9
Hindustan Aeronautics is retesting its breakout from a falling trendline on the daily chart, with higher-than-average traded volumes visible. The RSI indicator is positively placed, which has bullish implications.
Strategy: Buy
Target: Rs 4,720
Stop-Loss: Rs 4,290
BSE | CMP: Rs 6,690
BSE has given a range breakout and is heading upwards with a surge in volumes. The RSI indicator is rising, which confirms the bullish implications.
Strategy: Buy
Target: Rs 7,320
Stop-Loss: Rs 6,450
Aurobindo Pharma | CMP: Rs 1,160
Aurobindo Pharma has breached below its 50 DEMA support zones with a bearish candle. The RSI indicator is declining, supporting the declining momentum.
Strategy: Sell Futures of May 29
Target: Rs 1,085
Stop-Loss: Rs 1,200
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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