The benchmark indices remained in negative terrain with moderate losses amid volatility on October 23, continuing the downtrend for the third consecutive session, despite a positive market breadth. About 1,461 shares gained against 1,039 shares that fell on the NSE. The market is expected to sustain its downtrend amid consolidation, with a "sell on rally" strategy. Below are some trading ideas for the near term:
Jatin Gedia, Technical Research Analyst, Capital Market Strategy at Sharekhan
Tata Consultancy Services | CMP: Rs 4,066
TCS has completed a five-wave decline on the downside. We expect a retracement of this fall. The stock has formed a Bullish Engulfing candlestick pattern on the daily charts, which has bullish implications. A positive divergence on the daily momentum indicator suggests a loss of selling momentum on the downside. One can go long.
Strategy: Buy
Target: Rs 4,223, Rs 4,293
Stop-Loss: Rs 4,020
Voltas | CMP: Rs 1,795.65
Voltas has retraced 61.82 percent of the previous five-wave decline and has resumed its next leg of the fall. The daily momentum indicator has triggered a negative crossover, which is a sell signal. Thus, one can go short on the stock.
Strategy: Sell
Target: Rs 1,712
Stop-Loss: Rs 1,838
Vidnyan S Sawant, Head of Research at GEPL Capital
HCL Technologies | CMP: Rs 1,845.75
HCL Technologies has demonstrated a strong and consistent price structure on the weekly chart, particularly following a key change of polarity in June 2024. Since then, the stock has maintained its upward trajectory despite broader market volatility, showcasing high relative strength compared to its peers. On the technical front, HCL Technologies remains positioned above all major moving averages, including the 12, 26, 50, 100, and 200 EMAs (Exponential Moving Averages), underscoring its bullish momentum. The MACD (Moving Average Convergence Divergence) indicator is also trending higher, reflecting sustained buying interest and reinforcing the stock’s positive outlook. This technical alignment suggests that HCL Technologies is well-poised for further gains. Looking ahead, the stock shows potential for an upside target of Rs 2,155, with a recommended stop-loss at Rs 1,694 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 2,155
Stop-Loss: Rs 1,694
PG Electroplast | CMP: Rs 585.8
PG Electroplast has exhibited a solid price structure across higher timeframes, consistently maintaining its upward trajectory. In the recent week, the stock found key support at its 12-week moving average, indicating a potential bullish mean reversion. This suggests the stock is regaining strength and is poised for further upside. Additionally, other key moving averages, including the 26, 50, 100, and 200-week EMAs, are all trending higher on the weekly scale, further reinforcing the bullish momentum.
The MACD momentum indicator also shows a steady upward trend, confirming that the stock's positive price action is backed by strong, underlying momentum. This technical setup suggests PG Electroplast is well-positioned for continued growth in the coming weeks. Looking ahead, the stock has an upside target of Rs 704, with a recommended stop-loss at Rs 540 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 704
Stop-Loss: Rs 540
Skipper | CMP: Rs 540
Since 2022, Skipper has been in a persistent upward trend, showcasing strong bullish momentum. On the weekly scale, the stock retested a key multi-year breakout level in March 2024, and since then, it has consistently formed higher tops and higher bottoms, a hallmark of a healthy uptrend. Skipper has also maintained its position above critical moving averages, including the 12, 26, 50, 100, and 200-week EMAs, further reinforcing the strength of its upward trajectory. The MACD indicator is trending higher, signaling strong underlying momentum, which confirms that the price action is well-supported. Looking ahead, the stock has an upside potential target of Rs 645, with a stop-loss at Rs 494 on a closing basis for effective risk management.
Strategy: Buy
Target: Rs 645
Stop-Loss: Rs 494
Century Plyboards | CMP: Rs 879
Century Plyboards has been in a steady uptrend since March 2023, with any minor dips consistently finding support around the 12-EMA and 26-EMA. This buying activity at key levels has helped the stock form a series of higher highs and higher lows, further affirming its strong upward trajectory. Technical strength suggests Century Plyboards is well-positioned to continue its upward movement in the near term. Looking ahead, the stock shows potential for an upside target of Rs 1,072, with a recommended stop-loss at Rs 815 on a closing basis to manage risk effectively.
Strategy: Buy
Target: Rs 1,072
Stop-Loss: Rs 815
Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities
Mphasis | CMP: Rs 3,119.85
Mphasis has been maintaining its bullish momentum and has seen the formation of a higher bottom pattern. Recently, after marking its 52-week high of Rs 3,187.80 in September, the stock experienced a series of profit booking and retraced back towards the Rs 2,850 level. However, the stock managed to find support there and has once again resumed its uptrend. Technically, the stock has given a fresh breakout above the symmetrical triangle pattern on the daily charts and is on the verge of a fresh breakout above its 52-week high level as well. Therefore, one can accumulate the stock in the range of Rs 3,100-3,120 for the expected upside of Rs 3,600-3,650.
Strategy: Buy
Target: Rs 3,600, Rs 3,650
Stop-Loss: Rs 2,800
Tube Investments of India | CMP: Rs 4,635
For the last two to three months, Tube Investments of India has been consolidating in the range of Rs 4,000-4,600, with prices fluctuating within a broader range and sustaining well above its 200-day EMA. This week, a fresh breakout has been observed above the consolidation phase as the stock has picked up fresh bullish momentum above its key resistance level of Rs 4,600 after a prolonged consolidation phase. The positive divergences in secondary oscillators, along with a rise in average volume and positive price action, suggest further upward movement in the stock. Therefore, one can accumulate the stock in the range of Rs 4,600-4,650.
Strategy: Buy
Target: Rs 5,400, Rs 5,500
Stop-Loss: Rs 4,100
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