The benchmark indices failed to sustain near-record high levels and closed moderately higher on September 19, with market breadth favouring bears. About 1,792 shares declined, while 678 shares advanced on the NSE. The Nifty 50 is likely to continue its northward journey amid range-bound trading. Below are some trading ideas for the near term:
Amol Athawale, VP-technical Research at Kotak Securities
IDFC First Bank | CMP: Rs 73.82
After a short-term price correction, IDFC First Bank is available near its multiple support zones. The decent volume activity near the support zone indicates that the downside is limited. Therefore, the current rebound in the stock is expected to gain further bullish momentum from the current levels, with a favourable risk-reward perspective.
Strategy: Buy
Target: Rs 80
Stop-Loss: Rs 71
Muthoot Finance | CMP: Rs 2035.5
On the daily and weekly scales, Muthoot Finance is forming a rising channel with a higher-high and higher-low series pattern. After a sharp uptrend rally, the counter closed above its breakout zone. Furthermore, the bullish continuation chart structure indicates the uptrend will likely continue in the coming horizon.
Strategy: Buy
Target: Rs 2,170
Stop-Loss: Rs 1,960
Bikaji Foods International | CMP: Rs 932.65
After an uptrend rally, Bikaji Foods witnessed narrow-range activity. However, on the daily charts, the stock has given a breakout and formed a higher-bottom series pattern along with decent volume activity. The modest price-volume activity suggests a strong possibility of the breakout rally continuing in the near term.
Strategy: Buy
Target: Rs 1,000
Stop-Loss: Rs 905
Deven Mehata, Equity Research Analyst at Choice Broking
Zomato | CMP: Rs 279
Zomato is forming a bullish flag pattern on the daily chart, supported by significant volume, indicating strong upward momentum. If the price stays above Rs 280, it has the potential to rise toward Rs 295 levels. On the downside, immediate support is at Rs 273, which may present buying opportunities during dips. The Relative Strength Index (RSI) is at 62.64 and trending upward, reflecting increasing buying interest. To manage risk effectively, a stop-loss at Rs 270 is recommended to protect against any unexpected market reversals.
Strategy: Buy
Target: Rs 295
Stop-Loss: Rs 270
Kotak Mahindra Bank | CMP: Rs 1,872
The technical analysis of Kotak Mahindra Bank reveals several positive indicators. The stock is forming a higher-high and higher-low formation on the daily charts, signaling strength. It has crossed the Rs 1,870 resistance level, demonstrating strength in the stock's price action as it overcomes key barriers. Additionally, the formation of a bullish candlestick pattern on the daily chart suggests the potential for further upward movement. The stock is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs (Exponential Moving Averages). Looking ahead, a minor resistance level exists near Rs 1,920. If the stock closes above this level, it may have the potential to move higher, with a target of Rs 1,990 and beyond. The RSI, currently at 69.37, indicates strong momentum.
Strategy: Buy
Target: Rs 1,990
Stop-Loss: Rs 1,815
Oberoi Realty | CMP: Rs 1,842
Oberoi Realty’s daily chart shows a promising outlook for the upcoming days, reflecting a consistent upward trend. The stock is poised for a breakout from a well-formed rounding bottom pattern, especially if it closes above the critical Rs 1,878 mark. This breakout suggests the potential for further gains, targeting a price of Rs 1,952.10. The stock has demonstrated strong bullish momentum, highlighted by a robust bullish candle, indicating continued upward movement. The daily RSI is at 61.91 and trending upward, remaining above its reference line, which suggests positive market sentiment. Additionally, Oberoi Realty is trading above its key 20-day, 50-day, and 200-day EMAs, reinforcing the bullish trend.
Strategy: Buy
Target: Rs 1,952.1
Stop-Loss: Rs 1,786.4
Chandan Taparia, Head - Equity Derivatives & Technicals, Wealth Management at Motilal Oswal Financial Services
Dabur India | CMP: Rs 664.7
Dabur India has retested its breakout on the daily chart and inched higher. Buying activity is visible across the FMCG space, which may support the ongoing uptrend. The momentum indicator RSI is positively placed, suggesting higher prices in the near future.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 647
AU Small Finance Bank | CMP: Rs 752.5
AU Small Finance Bank has given a range breakout on the daily scale with noticeable volumes and is holding well above the breakout level. The ADX (Average Directional Index) line is rising, and the positive DI (Directional Indicator) is well above the negative DI, suggesting the bullish trend has strength.
Strategy: Buy
Strategy: Rs 800
Stop-Loss: Rs 730
Voltas | CMP: Rs 1,929
Voltas is in a strong uptrend, holding gains at higher levels. It has negated the lower-highs and lower-lows pattern after three trading sessions, forming a strong bullish candle on the daily chart. The MACD (Moving Average Convergence Divergence) indicator is headed upward, confirming the bullish momentum.
Strategy: Buy
Target: Rs 2,020
Stop-Loss: Rs 1,880
Kunal Kamble, Senior Technical Research Analyst at Bonanza
Nestle India | CMP: Rs 2,634
Nestle India has broken out of a falling parallel channel and a rounding pattern, signaling an uptrend. The increase in volume during the breakout indicates strong buyer interest. Additionally, the stock is trading above both the 20-day (fast) and 50-day (slow) EMAs, further confirming the uptrend. The RSI is also moving upwards, supporting the bullish movement. A long position can be considered as long as the stock is trading above Rs 2,520.
Strategy: Buy
Target: Rs 2,800, Rs 3,000
Stop-Loss: Rs 2,520
Aditya Birla Capital | CMP: Rs 229.5
Aditya Birla Capital has broken out of an ascending triangle on the upside, indicating an uptrend. It has taken support from the 20-day and 50-day EMAs, suggesting that these EMAs will act as strong support levels. The fast EMA (20-day) has crossed above the slow EMA (50-day), indicating a positive move. The increased volume reflects strong participant interest, and the RSI has also broken out above resistance, supporting the price action. Based on this technical setup, a long position can be considered as long as the stock holds above Rs 220.
Strategy: Buy
Target: Rs 245, Rs 260
Stop-Loss: Rs 220
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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