Equity benchmarks bounced back to gain 0.6 percent on July 1 after a two-day correction. Market breadth favoured the bulls, with about 1,647 shares advancing against 1,354 declining shares on the NSE. The market may extend its upward journey, but sustainability will be the key factor to watch amid the ongoing range-bound trade. Below are some short-term trading ideas to consider:
Rupak De, Senior Technical Analyst at LKP Securities
Paytm | CMP: Rs 1,203.7
One 97 Communications closed at its highest level in several sessions, indicating strengthening bullish sentiment. The RSI remains in a positive crossover and continues to trend higher, reflecting sustained positive momentum. Additionally, the stock is holding above the crucial 50-day EMA, reaffirming the strength of the prevailing uptrend.
Based on the current technical setup, the stock appears well-positioned for a meaningful upmove, with the potential to rally towards Rs 1,300 in the near term. On the downside, a stop-loss should be maintained below Rs 1,160.
Strategy: Buy
Target: Rs 1,300
Stop-Loss: Rs 1,160
Marico | CMP: Rs 851
Marico has given a swing-high breakout on the daily chart, indicating strengthening buying interest and improving bullish sentiment. The trend remains positive as the stock continues to sustain above the crucial 50-day EMA, reinforcing the underlying strength.
Additionally, the momentum oscillator is in a bullish crossover, suggesting positive price momentum. Based on the current technical setup, the stock appears well-positioned for a meaningful upmove, with the potential to rally towards Rs 900 in the near term. On the downside, a stop-loss should be maintained below Rs 824.
Strategy: Buy
Target: Rs 900
Stop-Loss: Rs 824
Aptus Value Housing Finance India | CMP: Rs 289.6
Aptus Value Housing Finance has given a consolidation breakout on the daily chart, indicating strong buying momentum. The trend remains positive as the stock continues to sustain above the crucial 50-day EMA, reinforcing the underlying strength.
Additionally, the momentum oscillator is in a bullish crossover, suggesting positive price momentum. Based on the current technical setup, the stock appears well-positioned for a meaningful upmove, with the potential to rally towards Rs 305 in the near term. On the downside, a stop-loss should be maintained below Rs 277.
Strategy: Buy
Target: Rs 305
Stop-Loss: Rs 277
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
Lodha Developers | CMP: Rs 992.3
Lodha Developers has confirmed a strong bullish breakout after moving above an ascending triangle pattern on the daily chart, signalling the continuation of its prevailing uptrend. Momentum has strengthened considerably, with the RSI breaking above the 60 mark, indicating sustained buying interest and improving bullish momentum. Trend strength has also picked up, as the ADX, which had been moving sideways, has turned higher, reflecting increasing conviction among buyers.
Adding to the positive outlook, the stock has closed above the upper Bollinger Band, a characteristic often associated with strong trending moves. The overall technical setup suggests that the bulls remain firmly in control, with the potential for further upside in the near term. Hence, accumulation is recommended in the Rs 985-995 zone, with a stop-loss at Rs 955. On the upside, the stock is likely to test Rs 1,065 in the short term.
Strategy: Buy
Target: Rs 1,065
Stop-Loss: Rs 955
HDFC AMC | CMP: Rs 2,745.8
HDFC Asset Management Company has turned decisively bullish after breaking above a downward-sloping trendline on the daily chart, signalling the end of its corrective phase. The stock continues to trade above its key short- and long-term moving averages, reaffirming the strength of the prevailing uptrend.
Momentum indicators have also aligned positively, with the DI+ crossing above the DI- on the ADX indicator, highlighting growing buyer dominance. The RSI has surged from 48 to 59, reflecting a sharp improvement in bullish momentum, while the MACD has moved above the zero line, reinforcing the positive trend.
The overall technical structure points towards sustained buying interest and the potential for further upside. Hence, accumulation is recommended in the Rs 2,725-2,750 zone, with a stop-loss at Rs 2,640. On the upside, the stock is likely to test Rs 2,945 in the short term.
Strategy: Buy
Target: Rs 2,945
Stop-Loss: Rs 2,640
DLF | CMP: Rs 648.7
DLF has strengthened its bullish setup after confirming a double-bottom breakout on June 15, followed by a healthy consolidation phase. The stock has now resumed its upward momentum with a decisive breakout from the consolidation on July 1, while also reclaiming the crucial 200-day EMA, signalling a positive shift in the broader trend.
Momentum indicators are turning increasingly supportive, with the RSI climbing back above the 60 mark, reflecting renewed buying strength. Additionally, the widening gap between the DI+ and DI- on the ADX indicator highlights strengthening bullish momentum and firm buyer dominance, indicating the potential for further upside in the sessions ahead.
Hence, accumulation is recommended in the Rs 645-650 zone, with a stop-loss at Rs 625. On the upside, the stock is likely to test Rs 700 in the short term.
Strategy: Buy
Target: Rs 700
Stop-Loss: Rs 625
Vaishali Patel, Deputy Manager - Research- Technical Department at Jainam
Electronics Mart India | CMP: Rs 127.82
Electronics Mart India has confirmed a breakout above a downward-sloping trendline, signalling a shift in momentum in favour of the bulls. The stock is trading above its short- and medium-term moving averages on the daily charts, indicating a strengthening price structure, while it continues to hold comfortably above the 200-day moving average, indicating a positive long-term trend.
The breakout is supported by a noticeable pickup in trading volumes, suggesting strong buying participation. As long as the stock sustains above the breakout zone, the overall technical outlook remains positive, with the potential for further upside in the coming sessions.
Strategy: Buy
Target: Rs 142
Stop-Loss: Rs 121
Mold-Tek Packaging | CMP: Rs 713.5
Mold-Tek Packaging has broken out of a bullish head-and-shoulders chart pattern on the daily chart after spending the last few weeks consolidating within a narrow range. The stock has displayed strong resilience by consistently finding support near its short-term moving averages, reflecting sustained buying interest at lower levels.
Price action remains well above all the key moving averages, indicating that the broader trend continues to favour the bulls. The recent pickup in volumes suggests renewed accumulation, and a decisive close above the immediate resistance could trigger the next leg of the uptrend.
Strategy: Buy
Target: Rs 758
Stop-Loss: Rs 693
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.