Podcast | Stock picks of the day: Market undertone likely to remain bearish ahead of F&O expiry

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26 Aug, 2025 12:21

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Shitij Gandhi

This Nifty index managed to give a decisive move well below its 200-days exponential moving average and closed below its crucial support of 10,700 levels after consolidating in a range of 10,950 to 10,700 for the last three weeks.

Bears took charge from the beginning and we saw call writers were active in 10,800 & 10,900 strike, keeping the upside capped. The market undertone is likely to remain bearish ahead of January Series future and option expiry on back of continuous long unwinding and short build up.

We expect the volatility to increase further as more companies are likely to come out with quarterly results. However, on the technical front, as far Nifty is trading well below 10,950-mark, we maintain a cautious view for coming sessions. On the downside, 10,500 levels will act as major support.

Here is a list of top three stocks which could give 5-9% return in the next one month:

MindTree: Buy| Target: Rs 976| Stop Loss: Rs 840| Upside 9%

The stock has been consolidating in range of 800-880 for more than two months along with consistent buying seen at lower levels.

However, the stock gave a breakout this week above the symmetrical triangle pattern on the daily charts and has also managed to close above its long-term moving averages.

Traders can accumulate the stock in range of 895-905 for the upside target of 976 levels and a stop loss below 840.

RBL Bank: Sell| Target: Rs 525| Stop Loss: Rs 580| Downside 6%

From the last six weeks, the stock has been consolidating in a range of 590-560 levels and is trading well above its short and long-term moving averages.

But, this week, prices slid well below its consolidating range as stock gave a channel breakdown along with marginally higher volumes, which suggest short build up in prices.

Traders can take a short position into the stock within a range of 555-560 for the downside target of 525 levels with stop loss above 580.

Colgate Palmolive (India): Sell| Target: Rs 1,210| Stop Loss: Rs 1,315| Downside 5%

In the recent past, the stock has given a decent rally from 1200 levels to 1350 levels in a short span of time. But, from 4-5 weeks, prices could not manage to gain momentum and was seen consolidating in range of 1300-1350.

We saw a breakdown below the key support level and has been witnessed along with heavy volumes. On the technical ground as well, the stock has formed a rounding top pattern and has given breakdown below the same.

Traders can take a short position into the stock within a range of 1270-1275 for the downside target of 1210 levels and a stop loss above 1315.

The author is a Senior Research Analyst, SMC Global Securities Ltd.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.