The lackluster trade continued in the market for three consecutive days, with the Nifty 50 closing lower by 0.14 percent on October 11. The breadth was slightly positive, with about 1,287 shares advancing compared to 1,214 shares declining on the NSE. The index is expected to consolidate with a positive bias as long as it defends the rising support trendline. Below are some trading ideas for the near term:
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Persistent Systems | CMP: Rs 5,469.6
Persistent Systems is in a strong uptrend across all time frames, forming a series of higher tops and bottoms, which indicates bullish sentiment. The stock is firmly holding the 50-day SMA (Simple Moving Average) support zone at Rs 5,101, reaffirming bullish sentiment. With its current close, the stock has surpassed the highs of the past couple of sessions on a closing basis, along with significant volumes indicating increased participation.
The daily and monthly strength indicator RSI (Relative Strength Index) is in positive territory, signaling rising strength. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 5,600-5,750, with a downside support zone of Rs 5,200-5,000.
Strategy: Buy
Target: Rs 5,600, Rs 5,750
Stop-Loss: Rs 5,200
Nippon Life India Asset Management | CMP: Rs 700
Strategy: Buy
Target: Rs 785, Rs 813
Stop-Loss: Rs 675
Tata Chemicals | CMP: Rs 1,183
Tata Chemicals has been consolidating within a "horizontal channel" (Rs 1,160-Rs 1,000) for the past 6-8 months. However, with its current close, the stock has decisively broken out of this channel on a closing basis. This breakout is accompanied by substantial volume, indicating increased participation. The daily and weekly "Bollinger Band" buy signal shows increased activity. The stock is well positioned above its 20, 50, 100, and 200-day SMAs, which are also rising along with the price, reaffirming the bullish trend. The daily, weekly, and monthly strength indicators of RSI are in positive territory, justifying rising strength across all time frames. Investors should buy, hold, and accumulate this stock with an expected upside of Rs 1,300-1,385, with a downside support zone of Rs 1,140-1,100.
Strategy: Buy
Target: Rs 1,300, Rs 1,385
Stop-Loss: Rs 1,140
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One
Exide Industries | CMP: Rs 530.5
Exide Industries has showcased a strong resurgence from the cluster of its Exponential Moving Averages (EMAs) on the daily timeframe and has bounced to witness a trendline breakout. The price movement has been supported by a noticeable increase in trading volumes, indicating robust sentiment on the counter. Going forward, the breakout on the daily chart is likely to trigger bullish traction in the near term. From a technical perspective, the indicators have rebounded to witness a positive crossover, signaling a bullish trend in the stock. Hence, we recommend buying Exide Industries for around Rs 525-520.
Strategy: Buy
Target: Rs 575, Rs 580
Stop-Loss: Rs 490
Hindustan Aeronautics | CMP: Rs 4,446.15
HAL has undergone a corrective phase from its peak of Rs 5,659 toward the 200 SMA on the daily timeframe chart, coinciding with the previous breakout zone. In the last couple of trading sessions, the counter has shown initial signs of reversal from the oversold territory, suggesting a favorable risk-reward ratio for short-term investors. Additionally, on the oscillator front, the 14-day RSI has experienced a positive crossover, indicating a potential upside move for the counter. Hence, we recommend buying HAL around Rs 4,420-4,400.
Strategy: Buy
Target: Rs 4,840, Rs 4,900
Stop-Loss: Rs 4,150
Mazagon Dock Shipbuilders | CMP: Rs 4,385
Mazagon Dock has experienced profit booking, followed by a time-wise corrective phase after a vertical rally. Currently, the stock has found support near its 100 DEMA on the daily timeframe chart, coinciding with the 50 percent Fibonacci retracement of the rally, indicating signs of respite from its corrective phase. Simultaneously, the recent upward momentum has been supported by an increase in average traded volumes, suggesting it may continue its upward movement in the near term. Hence, we recommend buying Mazagon Dock for around Rs 4,350.
Strategy: Buy
Target: Rs 4,900
Stop-Loss: Rs 3,980
Nandish Shah, Senior Technical/Derivative Analyst at HDFC Securities
Motilal Oswal Financial Services | CMP: Rs 808.55
After consolidating for the last few weeks, Motilal Oswal Financial Services resumed its uptrend and closed at all-time high levels. The stock price has been forming a bullish higher top, higher bottom formation on the weekly charts. Momentum indicators and oscillators like the Money Flow Index (MFI) and RSI are trending upward. They are placed above 50 on the daily and weekly charts, suggesting strength in the current bullish trend.
Strategy: Buy
Target: Rs 875, 905
Stop-Loss: Rs 750
Gujarat Alkalies and Chemicals | CMP: Rs 875.3
Gujarat Alkalies has broken out on the weekly chart from a downward-sloping trendline to close at its highest level since November 2022. Accumulation has been observed in the stock over the last month, with up days' volumes higher than down days'. Momentum indicators and oscillators indicate strength in the stock's current uptrend.
Strategy: Buy
Target: Rs 960, Rs 1,010
Stop-Loss: Rs 795
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