The benchmark indices bounced back after sharp weakness in the previous week, with the Nifty 50 rising 198 points on September 1. The market breadth also turned positive, as about 1,945 shares saw buying interest compared to 862 declining shares on the NSE. As long as the frontline indices defend the previous week's low, a gradual upward move is possible amid rangebound trading. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Inox India | CMP: Rs 1,170
Inox India has successfully broken out from its consolidation zone of Rs 1,112–1,160 and is now trading firmly above it, signalling strength. This breakout is further validated by strong volumes, indicating active participation and increased buying interest. On the technical front, the hourly MACD has generated a bullish crossover, which reinforces the positive momentum.
Additionally, a bullish divergence on the MACD adds weight to the ongoing uptrend, suggesting that the stock may continue its upward movement. Overall, the combination of breakout, volume confirmation, and supportive momentum indicators points toward a constructive outlook in the short term. Traders may consider entering long positions in the Rs 1,172–1,162 zone.
Strategy: Buy
Target: Rs 1,255
Stop-Loss: Rs 1,110
CG Power and Industrial Solutions | CMP: Rs 717.2
CG Power witnessed strong consolidation above the 100 DEMA in the Rs 650–700 zone, forming a solid base. Recently, the stock registered a breakout accompanied by a noticeable surge in volumes, confirming renewed buying interest. A trendline breakout has also been observed, further strengthening the bullish structure.
On the momentum front, the daily MACD has given a bullish crossover just above the zero line, which is considered a strong technical signal. These factors collectively indicate positive sentiment and suggest the potential for continued upside in the near term, provided the stock sustains above the breakout zone. Traders may consider entering long positions in the Rs 720–710 zone.
Strategy: Buy
Target: Rs 780
Stop-Loss: Rs 660
Granules India | CMP: Rs 515.8
Granules India witnessed a strong consolidation phase on the weekly chart, holding firm above the 200-period average in the Rs 445–490 zone. After this prolonged base-building, the stock has recently given a breakout and is now placed comfortably above the consolidation range, indicating strength.
On the momentum front, the weekly MACD has signalled a bullish crossover, supported by a divergence, which adds conviction to the uptrend. This combination of breakout and momentum indicators suggests a constructive outlook, with potential for further upside in the coming weeks, provided the stock sustains above the breakout zone. Traders may consider entering long positions in the Rs 515–500 zone.
Strategy: Buy
Target: Rs 585
Stop-Loss: Rs 456
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
United Spirits | CMP: Rs 1,321.2
United Spirits has witnessed Call unwinding at Rs 1,300 and Rs 1,320 strikes and addition in Put at the Rs 1,320 strike, indicating support at the lower levels. With the rise in price, there has been some short covering witnessed as well, thus indicating a bounce back in the near term. The stock is trading above its maximum pain level of Rs 1,320, which is a positive sign in the near term. One can buy United Spirits Futures in the range of Rs 1,325–1,335.
Strategy: Buy
Target: Rs 1,385, Rs 1,410
Stop-Loss: Rs 1,290
Bajaj Auto | CMP: 8,967
Bajaj Auto has provided a price breakout from the consolidation with an increase in open interest (OI), indicating short covering. This has been a laggard; hence, it is now time for it to catch up with its peers in the sector. At the Rs 9,000 strike, the stock has the highest Call base, and if it continues to trade above it, then it will witness huge short covering. It is trading quite well above its maximum pain level of Rs 8,800; hence, that will act as a support going forward. One can buy Bajaj Auto Futures in the range of Rs 9,000–9,020.
Strategy: Buy
Target: Rs 9,200, Rs 9,300
Stop-Loss: Rs 8,820
Dalmia Bharat | CMP: Rs 2,403.3
Dalmia Bharat has provided a breakout from a larger consolidation with an increase in OI, indicating long unwinding. The stock has closed above its crucial resistance level of Rs 2,400, as it has the maximum Call base at the Rs 2,400 strike. So, if it continues to trade above it, then it is likely to witness further upward momentum. One can buy Dalmia Bharat Futures in the range of Rs 2,400–2,420.
Strategy: Buy
Target: Rs 2,600
Stop-Loss: Rs 2,300
Vidnyan S Sawant, Head of Research at GEPL Capital
Eternal | CMP: Rs 321.1
Eternal has firmly sustained above its key 5-week average despite recent volatility, reflecting strong relative strength. Volume activity has also picked up in the past few weeks, further supporting the trend. On the daily scale, the stock is exhibiting a positive hidden divergence, where price action is forming higher bottoms while the indicator is registering lower bottoms. This setup suggests that the stock is well-positioned to extend its upward trajectory.
Strategy: Buy
Target: Rs 360
Stop-Loss: Rs 306
Cummins India | CMP: Rs 3,880.1
Cummins India maintains a strong long-term uptrend with a higher top–higher bottom structure on the monthly chart. On the weekly scale, a 41-week decline was swiftly retraced in just 20 weeks, highlighting robust demand and resilience. The stock sustains above key EMAs (12, 26, 50), all in bullish alignment, while the MACD remains in buy mode with a rising histogram, confirming momentum strength.
Strategy: Buy
Target: Rs 4,345
Stop-Loss: Rs 3,700
Nava | CMP: Rs 711.4
Nava has been in a strong uptrend since 2020, forming consistent higher tops and bottoms on the monthly scale. Recently, it broke out of a base pattern on the weekly chart, supported by rising volumes above the 21-week average. The stock sustains above key averages, with the MACD trending higher, reinforcing momentum in line with price action. This convergence signals continued bullish strength.
Strategy: Buy
Target: Rs 840
Stop-Loss: Rs 670
ITC Hotels | CMP: Rs 244.39
ITC Hotels continues to uphold its long-term bullish structure with a sequence of higher lows on the monthly chart, reflecting sustained investor confidence. On the weekly timeframe, the stock is consolidating near its 12-week EMA, a key dynamic support, while the rising 26-week EMA strengthens the medium-term trend. Notably, it has attracted buying interest within the 38.20%–50% Fibonacci retracement zone of the prior up move, signaling a healthy correction. Supporting this view, the stochastic oscillator has turned bullish, reinforcing the likelihood of trend resumption.
Strategy: Buy
Target: Rs 271
Stop-Loss: Rs 232
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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