The benchmark indices closed another rangebound session on a negative note, with the Nifty 50 falling again by 0.3 percent on October 16. About 1,259 shares advanced, while 1,250 shares declined on the NSE. The consolidation in the market is expected to continue, with a focus on stock-specific action amid the earnings season. Below are some trading ideas for the near term:
Vidnyan S Sawant, Head of Research at GEPL Capital
CESC | CMP: Rs 193.3
CESC has demonstrated a robust price structure on higher timeframes, showing strong relative strength amid market volatility. On the weekly scale, the stock broke out of a rising trendline in December 2023 and has maintained an upward trend since then. The breakout was accompanied by notable volume accumulation, indicating that the price action is well-supported by volume. Since May 2023, the stock has consistently stayed above the 26-week EMA (Exponential Moving Average), reflecting a healthy and sustained trend. The RSI (Relative Strength Index) momentum indicator stands at 62, reinforcing the bullish outlook. Looking ahead, the stock shows potential for an upside target of Rs 226, with a recommended stop-loss at Rs 177 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 226
Stop-Loss: Rs 177
Hindustan Petroleum Corporation | CMP: Rs 434.65
Hindustan Petroleum Corporation has gained momentum and displayed consistent price growth following the breakout from a Cup and Handle pattern. On the weekly scale, the stock experienced a change in polarity at the February 2024 swing high, reinforcing a robust price structure and suggesting further upside potential. Since the breakout, Hindustan Petroleum has consistently maintained its position above both the 12-week and 26-week EMAs, signaling strong trend support. The RSI stands at 64, indicating that the positive price action is backed by bullish momentum. Looking ahead, the stock has an upside target of Rs 502, with a recommended stop-loss at Rs 398 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 502
Stop-Loss: Rs 398
HDFC Asset Management Company | CMP: Rs 4,828
HDFC AMC has shown strong resilience since March 2023, consistently forming higher highs and higher lows. Despite challenging market conditions, the stock has remained stable within a well-defined range, showcasing its strength and relative outperformance. Trading volume has also surged above the 21-week average, indicating growing investor interest. On the daily chart, the stock recently broke through a key resistance level at Rs 4,546 with a solid bullish candlestick backed by strong volume. Looking ahead, the stock has an upside potential target of Rs 5,625, with a stop-loss at Rs 4,423 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 5,625
Stop-Loss: Rs 4,423
ITD Cementation | CMP: Rs 602
ITD Cementation has maintained a pattern of higher tops and higher bottoms since 2022, consistently staying above the 26-week EMA, signaling a strong and healthy uptrend. A key structural development occurred in November 2023 when the stock reached a multi-year high, surpassing the November 2017 swing high. More recently, a change in polarity was observed from the July 2024 swing high, indicating that the stock is positioned for further price growth. Looking ahead, the stock shows potential for an upside target of Rs 738, with a recommended stop-loss at Rs 555 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 738
Stop-Loss: Rs 555
Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities
Finolex Industries | CMP: Rs 322.65
Finolex Industries has been trading under pressure for the last five months, with prices fluctuating in the formation of a lower bottom pattern on daily charts. Recently, the stock managed to take support at its 200-day EMA and formed a Double Bottom pattern around the Rs 265 level. Technically, a fresh breakout has been observed above the long-term falling channel. Therefore, one can accumulate the stock on dips until the Rs 310 level for the expected upside of Rs 350-355, with a downside support zone of Rs 305-300.
Strategy: Buy
Target: Rs 350, Rs 355
Stop-Loss: Rs 270
Orient Cement | CMP: Rs 328.65
Orient Cement marked its 52-week high of Rs 369.60 in August, followed by a series of profit bookings that retraced the stock back towards its 200-day EMA on daily charts. However, the stock managed to take support there and has once again resumed its uptrend. Technically, the stock has formed a Cup & Handle pattern on broader charts and has caught renewed bullish momentum with a fresh breakout. Therefore, one can accumulate the stock in the range of Rs 320-330 for the expected upside of Rs 585-590, with a downside support zone of Rs 310-300.
Strategy: Buy
Target: Rs 375, Rs 380
Stop-Loss: Rs 285
Thyrocare Technologies | CMP: Rs 889.5
Thyrocare Technologies has been consolidating in a range of Rs 780-880 for the last two months, with prices fluctuating within a formation of lower highs and lower lows weekly. This week, a fresh breakout has been observed above the Bullish Flag pattern on weekly charts. The stock has picked up fresh bullish momentum above its key resistance level of Rs 880 after a series of consolidation phases. Therefore, one can accumulate the stock in the Rs 880-890 range for the expected upside of Rs 1,000-1,010, with a downside support zone of Rs 875-865.
Strategy: Buy
Target: Rs 1,000, Rs 1,010
Stop-Loss: Rs 800
0 Comment