The market recorded a new closing high after gaining strength in the afternoon on July 18, following a couple of days of consolidation. The Nifty 50 was up 188 points, or 0.76 percent, at 24,801. About 1,618 shares advanced against 728 declining shares on the NSE. The Nifty is likely to maintain an upward rally towards 24,900-25,000, with immediate support at 24,600-24,500 levels. Here are some trading ideas for the near term:
Amol Athawale, VP-Technical Research at Kotak Securities
Canara Bank | CMP: Rs 115.77
Post decline from higher levels, Canara Bank rebounded from its demand zone and witnessed a steady recovery from the lower levels. Additionally, on the daily charts, the counter has given a breakout from its sloping channel formation. The up moves in the counter suggest a new leg of the bullish trend from the current levels.
Strategy: Buy
Target: Rs 125
Stop-Loss: Rs 110
DLF | CMP: Rs 844.9
DLF is in the accumulation zone, trading in a rangebound mode for the past few sessions. The texture of the chart formation and the technical indicator RSI (Relative Strength Index) indicate that the counter is very likely to break out from the rectangle formation for a new leg of the upmove in the near term.
Strategy: Buy
Target: Rs 905
Stop-Loss: Rs 815
Bata India | CMP: Rs 1,530.45
Bata India has shown a robust rally from the lower levels in recent sessions. Additionally, it is continuously trading in an ascending triangle chart formation along with decent volume activity on a daily scale. Therefore, the overall formation indicates a likely breakout for a new leg of the upmove in the coming horizon.
Strategy: Buy
Target: Rs 1,640
Stop-Loss: Rs 1,470
Mandar Bhojane, Equity Research Analyst at Choice Broking
Tata Consultancy Services | CMP: Rs 4,315.55
TCS has recently broken out of its range on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above Rs 4,320, it may have the potential to reach short-term targets of Rs 4,600 and Rs 4,900. Immediate support levels are located at Rs 4,200, and these levels can be considered opportunities to buy on dips. The RSI currently stands at 73.8 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss at Rs 4,000.
Strategy: Buy
Target: Rs 4,600, Rs 4,900
Stop-Loss: Rs 4,000
Cholamandalam Investment and Finance | CMP: Rs 1,449.85
Cholamandalam Investment has recently broken out of a trendline on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above Rs 1,450, it may have the potential to reach short-term targets of Rs 1,600 and Rs 1,700. Immediate support levels are located at Rs 1,400, which can be considered opportunities to buy on dips. The RSI currently stands at 60 and is trending upward, indicating increasing buying momentum. It is advisable to set a stop-loss at Rs 1,360.
Strategy: Buy
Target: Rs 1,600, Rs 1,700
Stop-Loss: Rs 1,360
Bajaj Finserv | CMP: Rs 1,651.25
Bajaj Finserv is ready for a breakout of its range on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above Rs 1,660, it may have the potential to reach short-term targets of Rs 1,740 and Rs 1,800. The RSI currently stands at 69.4 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss at Rs 1,580.
Strategy: Buy
Target: Rs 1,740, Rs 1,800
Stop-Loss: Rs 1,580
Chandan Taparia, Head - Equity Derivatives & Technicals, Broking & Distribution at Motilal Oswal Financial Services
Tata Consumer Products | CMP: Rs 1,193.4
Tata Consumer Products has given a range breakout on the daily and weekly charts. Buying is visible across the FMCG space, which may support the ongoing move.
Strategy: Buy
Target: Rs 1,250
Stop-Loss: Rs 1,160
Oil and Natural Gas Corporation | CMP: Rs 331.7
ONGC is in an overall uptrend and gave a multi-year breakout of the past ten years. It has formed higher tops and higher bottoms over the past six days, with supports gradually shifting higher
Strategy: Buy
Target: Rs 350
Stop-Loss: Rs 320
Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio
Bajaj Consumer Care | CMP: Rs 280
Bajaj Consumer seems to be breaking out of a rising channel pattern on the daily timeframe and is expected to remain in a bullish trend until the low of the breakout candle is not breached. The probability of a continued bullish trend will increase if the stock closes above Rs 282 weekly. A long position can be initiated only after the stock closes above Rs 282, with a stop-loss at Rs 270 and a target of Rs 305.
Strategy: Buy
Target: Rs 300, Rs 310
Stop-Loss: Rs 270 (daily closing basis)
India Cements | CMP: Rs 344.75
India Cements has formed a candlestick pattern named Three White Soldiers on the daily timeframe, indicating bullish sentiment. The price trades above all the EMAs (Exponential Moving Averages), indicating bullishness. The momentum indicator RSI is moving in the northern direction, supporting the price.
Strategy: Buy
Target: Rs 370, Rs 375
Stop-Loss: Rs 330
SBI Life Insurance Company | CMP: Rs 1,659.8
The primary trend in SBI Life Insurance is positive, and buyers have shown aggressive intention of buying the security on dips. The volume increase during the buy days is on the higher side, and the diminishing volume during the selling suggests that buyers are interested in buying the security on dips. The ongoing rising trendline breakout followed by a rounding pattern seen on the weekly scale suggests a positive outlook. The momentum indicator RSI is now trading in a higher range, indicating an uptrend in the security and supporting the price action.
Strategy: Buy
Target: Rs 1,715
Stop-Loss: Rs 1,620
Finolex Industries | CMP: Rs 331.70
After a remarkable upside, Finolex Industries took a hiatus for the last few trading sessions. The price-wise correction was suggesting a healthy sign. In Thursday’s session, a breakout of the falling trendline was seen, suggesting a continuation of the uptrend. Moreover, the stock is trading above its short-term moving average. On the momentum front, the RSI (14) is now moving towards the upward territory, which supports the price trend.
Strategy: Buy
Target: Rs 355
Stop-Loss: Rs 318 (daily closing basis)
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