The benchmark indices closed with moderate losses amid range-bound trading on August 14. Market breadth remained weak, with 1,778 declining shares against 1,260 advancing shares on the NSE. The market is expected to remain in consolidation, with trading likely to be confined within last Wednesday’s range. Below are some short-term trading ideas to consider:
Rajesh Palviya, Senior Vice President Research (Head of Research) at Axis Securities
The strong price surge over the past couple of weeks has resulted in a short-term trend reversal. In addition, APL Apollo Tubes confirmed a breakout above the seven-month downward-sloping trendline at Rs 1,985 on high volume, further confirming the trend reversal. The high volumes accompanying the breakout signify increased market participation.
The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up along with the price rise, further confirming bullish sentiment. The daily, weekly, and monthly Relative Strength Index (RSI) readings are in favourable territory, indicating rising strength across all time frames.
On the daily and weekly charts, Sumitomo Chemical is in a strong uptrend, forming a series of higher tops and bottoms, indicating a positive bias. With last week’s close, the stock decisively surpassed the high of the past four weeks on a closing basis, indicating a resumption of the prior upmove.
The stock is well placed above its 20-, 50-, 100-, and 200-day simple moving averages (SMAs). These averages are also inching up along with the price rise, further confirming bullish sentiment. The daily, weekly, and monthly RSI readings are in favourable territory, indicating rising strength across all time frames.
On the daily and weekly charts, Eicher Motors is in a strong uptrend, forming a series of higher tops and bottoms, indicating a positive bias. With last week’s close, the stock is on the verge of a breakout from the Rs 8,100–8,200 levels. The daily, weekly, and monthly RSI readings are in favourable territory, indicating rising strength across all time frames.
Jatin Gedia, VP - Technical Research at Teji Mandi Investment Technologies
KFin Technologies has been undergoing mean reversion for the last two weeks following a sharp run-up from Rs 855 to Rs 983. It has retraced towards the support cluster of Rs 910–920, which coincides with the 50 percent Fibonacci retracement level at Rs 919 and the 40-day exponential moving average (EMA) at Rs 910. The consolidation took the form of a falling wedge pattern, and in the previous trading session, the stock broke out of this pattern on the upside, suggesting a resumption of the uptrend.
The stock has closed above its 20- and 40-day moving averages, suggesting short-term strength. The momentum indicator is on the verge of providing a positive crossover, which is a bullish sign for the stock. Thus, considering the price-pattern breakout and momentum setup, the stock is expected to trade with a positive bias during the upcoming trading sessions.
Adani Green Energy has completed a five-wave decline, suggesting that a counter-trend pullback is likely during the upcoming trading sessions after the stock formed a strong bullish candle on the daily charts. A positive crossover in the momentum indicator suggests a buy signal.
On the weekly charts, the stock has reverted towards its 20-week average support, placed at Rs 1,360. Thus, considering that prices have reached crucial support levels and the momentum setup suggests an exhaustion of selling pressure, a counter-trend rally is highly probable in the upcoming trading sessions.
Havells India has been forming higher highs and higher lows on the daily charts, suggesting an uptrend according to Dow Theory. Last week, the stock consolidated near its 20-day moving average at Rs 1,260 and formed a hammer candlestick pattern, suggesting buying interest at support.
In terms of price patterns, the stock has broken out of a bullish flag pattern, which is a trend-continuation pattern. The momentum indicator RSI has triggered a positive crossover and is sustaining above the 65 level, keeping the bullish momentum intact. Thus, considering the price-pattern breakout and continued positive momentum, the stock is expected to trade with a positive bias during the upcoming trading sessions.
Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One
Aequs has been in a secular uptrend, hovering above its 20-day EMA following a recent retracement phase. The stock has been in a cycle of higher highs and higher lows since inception and has witnessed strong, staggered moves.
Furthermore, the SuperTrend, along with all major indicators, is strongly aligned with the primary trend, adding to the bullish quotient and suggesting the potential for a continued northward journey. Hence, buying is recommended in the stock around Rs 240.
Asahi India Glass has witnessed strong momentum in recent sessions from the cluster of its EMAs and has surged above its 200-day simple moving average (DSMA), indicating a strong nearby support base. The stock appears to be forming a potential bullish reversal-continuation pattern and has surged above the 50 percent Fibonacci retracement level of the longer correction zone.
Furthermore, a positive crossover in the 14-day RSI, followed by supportive volumes, indicates a favourable outlook and strengthening bullish momentum. Hence, buying is recommended in the stock around Rs 930.
Dynamatic Technologies has witnessed some buying traction from the cluster of its EMAs and has rebounded above its 20-, 50-, and 100-day EMAs on supportive volumes. The stock has surged above the downward-sloping trendline, suggesting a potential revival from the ongoing consolidation phase after an elongated period.
Momentum indicators remain aligned with the price action, reinforcing the positive bias and suggesting the potential for further near-term upside. Hence, buying is recommended in the stock around Rs 11,000–11,100.
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