The benchmark indices sharply nosedived on November 4, with the Nifty 50 declining by 1.3 percent. The market breadth favored bears, with 2,006 shares declining against 581 advancing shares on the NSE. The bearish sentiment is expected to continue, as the market traded well below all key moving averages (10-20-50-100 EMAs). Below are some trading ideas for the near term:
Pravesh Gour, Senior Technical Analyst at Swastika Investmart
Abbott India | CMP: Rs 29,460
Abbott India is in a classical uptrend and has witnessed a breakout of a triangle formation to resume its upward trajectory. The breakout coincides with rising volume, and it has managed to sustain above the breakout level despite weakness in the broader market.
The stock is trading above its all-important moving averages, with a positive bias in momentum indicators. On the upside, Rs 30,500 will act as a resistance level, and above this, Rs 32,000 will be the next hurdle. On the downside, the Rs 27,500 level will act as a strong support level. It is respecting its 200-DMA beautifully, which is a classic sign of trend strength.
Strategy: Buy
Target: Rs 32,000
Stop-Loss: Rs 27,500
Gufic Biosciences | CMP: Rs 465.5
Gufic Biosciences has witnessed a breakout of a triangle formation on the daily chart with significant 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 (Relative Strength Index) is positively poised, while MACD (Moving Average Convergence and Divergence) is witnessing a centerline crossover on the upside. On the higher side, Rs 480 is acting as an important psychological level; above this, we can expect a level of Rs 500 in the near-short term, while on the lower side, Rs 420 will act as a major support during any correction.
Strategy: Buy
Target: Rs 530
Stop-Loss: Rs 420
Vishnu Chemicals | CMP: Rs 540.5
Vishnu Chemicals is in a strong uptrend, with a breakout from long consolidation and strong volume. The overall structure of the counter is very lucrative, as it is trading above all of its important moving averages. On the higher time frame, there is a breakout of a bullish flag formation, suggesting much more potential upside in this counter. It has retested its previous breakout level of Rs 480 after hitting a fresh all-time high. The momentum indicator RSI is positively poised, while MACD is witnessing a centerline crossover on the upside. On the higher side, Rs 580 is acting as an important psychological level; above this, we can expect a level of Rs 600 in the near-short term, while on the lower side, Rs 490 will act as a major support during any correction.
Strategy: Buy
Target: Rs 610
Stop-Loss: Rs 490
Rohan Shah, Technical Analyst at Asit C Mehta Investment Intermediates
ITC | CMP: Rs 484.6
The FMCG index has dropped to a key confluence support zone, where we expect buying demand to emerge. Within this sector, the leader, ITC, is presenting a fresh buying opportunity with a favorable risk-reward setup. The recent decline from its lifetime highs has brought the stock down to multiple technical support levels, aligning with polarity support and the short-term moving average. Additionally, the momentum indicator RSI remains above its neutral level, reinforcing a bullish bias.
Strategy: Buy
Target: 540
Stop-Loss: Rs 458
National Aluminium Company | CMP: Rs 230.82
National Aluminium Company (NALCO) is trading near record highs and has demonstrated strong relative strength despite volatility in the broader markets and benchmark index. We expect this outperformance to continue, and the stock to enter uncharted territory. Recently, it broke out from a sideways price range with a surge in volume, establishing an elevated base near its rising 20-day EMA. Given the price action and volume activity, we believe the stock is poised to resume its upward momentum.
Strategy: Buy
Target: Rs 250
Stop-Loss: Rs 220
Power Grid Corporation of India | CMP: Rs 315.5
After a strong rally in recent months, Power Grid Corporation is now showing signs of a potential trend reversal. The stock has broken down from a double-top pattern, signaling weaker price action. Additionally, it has slipped below its weekly 20-day EMA, which has acted as a key support level over the past several months, indicating a weakening trend. Given this price pattern, we expect fresh selling pressure to emerge, potentially driving the price lower.
Strategy: Sell
Target: Rs 285
Stop-Loss: Rs 330
Virat Jagad, Technical Research Analyst at Bonanza Portfolio
Birlasoft | CMP: Rs 549.8
The daily chart of Birlasoft shows a confirmed breakdown from a descending triangle pattern, signaling a bearish outlook. This breakdown, accompanied by a substantial increase in trading volume, highlights strong selling interest and negative sentiment. The stock is trading near recent lows, with both the fast and slow EMAs trending downward, further supporting the bearish perspective. Additionally, the RSI is approaching the oversold region, confirming ongoing weakness. Collectively, these technical indicators suggest a strong bearish outlook, with potential for continued downside in the near term.
Strategy: Sell
Target: Rs 520
Stop-Loss: Rs 565
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