Buy Ideas for Short Term
The benchmark indices rallied seven-tenths of a percent, marking a good start to the week on October 14, after consolidating last week. On the breadth, about 1,288 shares declined compared to 1,251 shares that advanced on the NSE. The Nifty 50 is likely to continue its upward rally given the beginning of momentum and a fall in volatility. Below are some trading ideas for the near term:
Mehul Kothari, DVP – Technical Research at Anand Rathi
Venkys | CMP: Rs 1,923.7
Recently, Venkys India fell from the peak of Rs 2,500 towards the Rs 1,900 mark without any meaningful correction. The stock has found support at the Ichimoku flat line on multiple time frames. This support coincides with the placement of the 200 DEMA (Daily Exponential Moving Average). We expect a bounce in the stock in the coming sessions. Thus, traders are advised to buy the stock near Rs 1,920 - 1,910 for a target of Rs 2,020.
Strategy: Buy
Target: Rs 2,020
Stop-Loss: Rs 1,850
Aditya Birla Capital | CMP: Rs 224
After a correction from the recent high of Rs 244, Aditya Birla Capital has found support at the placement of a rising trendline. The stock has also turned from the Rs 220 mark, which is the 78.6 percent retracement of the recent rally. There is a hidden divergence formation on the daily scale, indicating a possibility of a bounce. Thus, traders are advised to buy the stock only above Rs 226 for a target of Rs 238.
Strategy: Buy
Target: Rs 238
Stop-Loss: Rs 220
IndusInd Bank | CMP: Rs 1,370.5
Recently, we witnessed a decisive upward move in private banks like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. Currently, IndusInd Bank also appears to be preparing for the upside, as there is a positive divergence of the RSI (Relative Strength Index) on the daily scale. Further, the stock is turning from a multiple support zone and can be bought for a pullback. Thus, we advise traders to go long in the stock near Rs 1,360 for a target of Rs 1,430.
Strategy: Buy
Target: Rs 1,430
Stop-Loss: Rs 1,315
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Zydus Lifesciences | CMP: Rs 1,062.4
Zydus Lifesciences seems to have completed its short-term downtrend, and the momentum indicator MACD (Moving Average Convergence Divergence) has returned to buy mode. The stock has also formed multiple supports near the Rs 1,036 level, which is the immediate support. The stock is likely to bounce back due to short covering, hence it appears bullish in the short term.
Strategy: Buy
Target: Rs 1,096, Rs 1,134
Stop-Loss: Rs 1,035
Tech Mahindra | CMP: Rs 1,692.5
Tech Mahindra has provided a breakout from sideways consolidation, specifically a rectangular pattern, and the momentum indicator MACD has also entered the buy mode, indicating a bullish sign. Hence, the short-term outlook is positive. The stock has an upward cycle based on the futures data, and although it witnessed some profit booking, it has seen an upward breakout with a long build-up again.
Strategy: Buy
Target: Rs 1,760, Rs 1,800
Stop-Loss: Rs 1,648
HDFC Life Insurance Company | CMP: Rs 740.6
HDFC Life Insurance has provided a breakout from a falling trendline, accompanied by a bullish crossover on its momentum indicator MACD on the daily chart. The stock has also seen short covering in the near term, indicating a higher probability of an upside.
Strategy: Buy
Target: Rs 760, Rs 780
Stop-Loss: Rs 727
Pravesh Gour, Senior Technical Analyst at Swastika Investment
Brainbees Solutions (Firstcry) | CMP: Rs 718.3
Brainbees Solutions has witnessed a breakout of a symmetrical triangle formation on the daily chart with substantial volume. It is trading in a new blue-sky zone, and its structure is very impressive, as it is trading above all its important moving averages. The momentum indicator RSI is positively poised, while MACD is experiencing a centerline crossover on the upside. On the higher side, Rs 750 is acting as an important psychological level; above this, we can expect levels of Rs 800 in the near-short term, while on the downside, Rs 670 will act as a major support during any correction.
Strategy: Buy
Target: Rs 800
Stop-Loss: Rs 670
DOMS Industries | CMP: Rs 2,789.9
The structure of DOMS Industries is bullish, having experienced a breakout from an Inverse Head & Shoulders formation with significant volume on the hourly chart. It is emerging from a long consolidation range with a triangle formation and is currently trading above all key moving averages, forming higher highs and higher lows. On the upside, Rs 2,900 serves as immediate horizontal resistance, and a break above this could lead to levels above Rs 3,000 in the near term. On the downside, a cluster of moving averages forms a strong base around Rs 2,550.
Strategy: Buy
Target: Rs 3,140
Stop-Loss: Rs 2,550
Persistent Systems | CMP: Rs 5,616.7
On a longer horizon, Persistent Systems has broken a triangle formation with significant volume and found a strong base at the 50-DMA around Rs 5,080. The overall structure appears lucrative as it trades above all major moving averages. The momentum indicators further support this bullish outlook, with the RSI positively poised and the MACD showing an upward centerline crossover. On the higher side, Rs 5,800 serves as a key psychological level; a break above this could lead to levels of Rs 6,000 in the near short term. Conversely, Rs 5,200 will act as major support during any corrections.
Strategy: Buy
Target: Rs 6,164
Stop-Loss: Rs 5,200
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