Benchmark indices on November 7 reversed all the previous day’s gains and closed the session with losses of more than one per cent. About 1,569 shares declined on the NSE, while 928 shares advanced. The market is expected to consolidate further until it trades below all major moving averages. Some trading ideas for the near term are as follows…
Firstsource Solutions | CMP: Rs 381
Ameya Ranadive, CMT CFTE, Senior Technical Analyst at Stockbox, believes that FirstSource Solutions is currently moving inside a positive upward channel. This reflects strong momentum supported by large volume accumulation over the last three days. The stock recently broke a key resistance level at Rs 375 and has held levels above this range, indicating further profit potential. On the technical front, RSI (Relative Strength Index) is at 64, and ADX (Average Directional Index) is showing strength at 31.5. FirstSource is trading above all major exponential moving averages (9, 20, 50, 100, and 200 EMAs). This shows a well-supported bullish trend. If the stock sustains above Rs 372 for two days, an upside movement towards Rs 400-410 levels may be achieved. However, a break below Rs 360 may indicate a change in momentum.
Strategy: Buy
Target: Rs 405, Rs 415
Stop-loss: Rs 360
Welspun Corp | CMP: Rs 796
According to Ranadive, Welspun Corp has been consolidating in a broad range of Rs 765-665 for the last three months and has now successfully breakoutd, indicating fresh buying interest. The stock has crossed the critical resistance zone of Rs 765 and remains well above it. The RSI is strong at 67, and Welspun is trading above all major EMAs (9, 20, 50, 100 and 200), indicating bullish sentiment. If the stock remains above Rs 770 for two consecutive days, further movement towards Rs 835-845 can be seen. However, a fall below Rs 755 could indicate a possible change in momentum.
Strategy: Buy
Target: Rs 835, Rs 845
Stop-loss: Rs 755
Thirumalai Chemicals CMP: Rs 336.5
Ranadive says Tirumalai Chemicals has shown resilience recently, bouncing back from the support zone around Rs 290 and overcoming the key resistance at Rs 325. The stock is currently trading above its 20, 50, 100 and 200 EMAs, indicating an upside bias. The RSI, currently at 59, has risen above previous support levels, indicating further strength. A short term move towards Rs 355 is expected, further buying interest is likely after breaking this level.
Strategy: Buy
Target: Rs 357, Rs 368
Stop-loss: Rs 315
Coromandel International | CMP: Rs 1778
Chandan Taparia, Head-Equity Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services, believes Coromandel International has given a trendline breakout with high buying volumes to support the upside. Buying is visible in the fertilizer space, which may sustain the momentum. The RSI indicator is rising, indicating bullish momentum.
Strategy: Buy
Target: Rs 1,885
Stop-loss: Rs 1,725
Bharat Electronics | CMP: Rs 300.2
Taparia says Bharat Electronics has formed a large-bodied candle on the weekly chart, while breaking a range on the daily chart. The ROC (Rate of Change) momentum indicator has turned upward, indicating bullish sentiment.
Target: Rs 325
Stop-loss: Rs 288
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City Union Bank | CMP: Rs 181
According to Taparia, City Union Bank has broken out of its accumulation zone with the volume spike visible on the daily chart. MACD (Moving Average Convergence Divergence) indicator has given a bullish crossover and is moving upwards, which confirms the bullishness.
Strategy: Buy
Target: Rs 190
Stop-loss: Rs 175
State Bank of India | CMP: Rs 859.6
Kunal Kamble, Senior Technical Research Analyst at Bonanza, believes that State Bank of India has broken its one-month consolidation and closed above the breakout zone. This indicates a positive trend. A rise in price along with higher volume indicates strong buying interest. Apart from this, price trade above both fast (50 EMA) and slow (100 EMA) moving averages supports the uptrend. A break of the RSI above its resistance level indicates further momentum. Based on this technical setup, a long position in SBI can be considered with stop-loss at Rs 800. The stock may move towards Rs 950-1,000 with gains.
Strategy: Buy
Target: Rs 950, Rs 1,000
Stop-loss: Rs 800
FSN E-Commerce Ventures | CMP: Rs 191.5
Nika’s parent company FSN Ecommerce Ventures has resumed its upward movement after a throwback and took support at 100 EMA. This shows that this EMA may act as a strong support in the coming days. The price also closed above the 50 EMA, indicating a possible uptrend. Furthermore, the RSI is moving upwards, which is aligned with the price action. Based on this technical setup, a long position can be considered in Nykaa with a stop-loss of Rs 180. The stock may move towards Rs 205-220.
Strategy: Buy
Target: Rs 205, Rs 220
Stop-loss: Rs 180
Tata Communications | CMP: Rs 1,805.8
The appearance of several doji candles near the rising trendline, as well as a strong bullish candle following the Hammer candlestick pattern, indicate buyer interest near the support level. Apart from this, RSI trading above its moving average and breakout from consolidation supports bullish price action. Based on this technical setup a long position can be considered in Tata Communications with stop-loss at Rs 1,700.
Strategy: Buy
Target: Rs 2,000, Rs 2,100
Stop-loss: Rs 1,700
These 4 stocks will make money on November 8, strong action can be seen in the shares after the market opens.
Oberoi Realty | CMP: Rs 2,032
According to Amol Athawale, VP-Technical Research at Kotak Securities, Oberoi Realty has shown a strong rally from lower levels in recent sessions. Apart from this, there is also a new breakout from the Ascending Triangle chart formation on the daily scale with incremental volume. As a result, a close comfortably above its breakout zone indicates continuation of the upward momentum in the coming sessions.
Strategy: Buy
Target: Rs 2,170
Stop-loss: Rs 1,960
Tata Consultancy Services | CMP: Rs 4,151
After falling from higher levels, TCS bounced back from its support zone and witnessed a steady recovery from lower levels. Apart from this, the stock has given a breakout from its sloping channel formation on the daily chart. An upward move in the counter signals a new phase of the bullish trend from the current levels.
Strategy: Buy
Target: Rs 4,440
Stop-loss: Rs 4,000
Apollo Tires | CMP: Rs 497.5
After short term price correction, Apollo Tires has formed a double bottom chart pattern. Bullish activity near the support zone indicates that the counter has limited downside. The chart structure suggests a fresh rally in the near term.
Strategy: Buy
Target: Rs 535
Stop-loss: Rs 480
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