The benchmark indices gained more than 0.7 percent on July 2, extending their uptrend for another session amid positive market breadth. Around 1,991 shares advanced, compared with 1,010 declining shares on the NSE, reflecting broad-based buying interest. The market sentiment is expected to remain positive in the near term. Below are some short-term trading ideas to consider.
Jay Mehta, Technical Research at JM Financial Services
Paradeep Phosphates | CMP: Rs 140.33
Paradeep Phosphates is exhibiting a bullish structure, characterised by higher highs and higher lows. In recent sessions, the stock has been consolidating around its 200-day EMA, forming a short-term base near this key level. This consolidation has also occurred at the retest of the prior breakout zone, indicating underlying strength and accumulation.
Over the last three sessions, the stock has formed higher highs and higher lows on lower timeframes, supported by rising volumes, reflecting strong bullish participation. Momentum indicators remain in bullish territory with positive crossovers, while trend indicators also point to continued upside.
Strategy: Buy
Target: Rs 151, Rs 159
Stop-Loss: Rs 130
Tata Technologies | CMP: Rs 712.4
Tata Technologies has formed a bullish Morning Star candlestick pattern, with the star candle appearing near the 200-day EMA, accompanied by a strong spike in volumes. This suggests that the short-term downtrend is losing momentum and that a reversal is likely.
In the latest session, the stock rebounded strongly. It is trading above the 50-DEMA and 200-DEMA, with a golden crossover in place. The stock has retraced about 50 percent of the rally witnessed between March 30 and June 9, keeping the broader trend positive.
Momentum indicators have recovered from lower levels and are displaying a bullish bias. A bullish Island Reversal pattern is also visible on the 75-minute timeframe, further strengthening the reversal setup.
Strategy: Buy
Target: Rs 786, Rs 820
Stop-Loss: Rs 613
Poly Medicure | CMP: Rs 1,732.3
Poly Medicure is trading in a bullish structure with higher highs and higher lows on the weekly timeframe. Recently, the stock broke out of a consolidation pattern and is now trading above all its key moving averages on the daily chart. It has also formed a short-term base near the 200-day EMA following the June rally, indicating healthy consolidation.
In the latest session, strong volume participation was seen as the stock broke above its recent seven-day range, signalling bullish accumulation. Momentum and trend indicators continue to suggest a positive bias with the likelihood of further upside.
Strategy: Buy
Target: Rs 1,830, Rs 1,860
Stop-Loss: Rs 1,600
Om Mehra, Technical Research Analyst at Samco Securities
Mastek | CMP: Rs 1,613.4
Mastek is attempting to move through the Ichimoku Cloud on the daily chart after a prolonged corrective phase, signalling a meaningful recovery. The stock is currently trading within the cloud.
The latest session witnessed a strong upward move, with volumes significantly above the recent average, indicating renewed participation at current levels.
The RSI has recovered to around the 50 mark, with a positive divergence visible. The stock is now holding above its 20-day SMA. Hence, traders may consider long positions at the CMP of Rs 1,613.40, with an upside target of Rs 1,780 and a stop-loss at Rs 1,540.
Strategy: Buy
Target: Rs 1,780
Stop-Loss: Rs 1,540
Bajaj Finserv | CMP: Rs 1,855.70
Bajaj Finserv has broken decisively above the Rs 1,800-1,810 resistance zone, which had capped the stock on multiple occasions. The latest session reflected a strong upward move, with the stock gaining more than 3 percent and volumes remaining well above the recent average, indicating broad participation in the breakout. The stock is also trading comfortably above its short-term moving averages.
The RSI is placed near 66 and continues to trend higher, reflecting strengthening momentum. The MACD remains in positive territory, with the histogram expanding and supporting the ongoing move. The NBFC space has also been witnessing renewed strength, lending additional support to the setup.
Hence, traders may consider long positions at the CMP of Rs 1,855.70, with an upside target of Rs 1,960 and a stop-loss at Rs 1,795.
Strategy: Buy
Target: Rs 1,960
Stop-Loss: Rs 1,795
Bharat Petroleum Corporation | CMP: Rs 310.45
BPCL has been gradually forming higher highs on the daily chart after finding support near the Rs 310 zone in June, indicating a steady improvement in the near-term trend. The stock is now holding above its 20-day and 50-day SMAs, which are beginning to flatten and provide support to the ongoing recovery. The Rs 315 zone remains the immediate resistance to watch for the continuation of the recent recovery.
The RSI is placed near 55 and is trending higher, reflecting gradually improving momentum. The MACD has turned positive, signalling an early shift in trend direction. The oil and gas sector is also rebounding from lower levels, providing additional support to the setup.
Hence, traders may consider long positions at the CMP of Rs 310.45, with an upside target of Rs 330 and a stop-loss at Rs 297.
Strategy: Buy
Target: Rs 330
Stop-Loss: Rs 297
Hitesh Tailor, Technical Research Analyst at Choice Broking
TVS Motor Company | CMP: Rs 3,626.8
TVS Motor Company is exhibiting strong bullish momentum after delivering a fresh falling trendline breakout and sustaining above the breakout zone with a strong close, indicating a positive shift in trend. The stock has witnessed a bullish crossover in its short-term EMAs and continues to trade above all key EMAs, reflecting strong trend alignment. It also recently found support near the 20-day and 200-day EMA zone before bouncing back, highlighting robust buying interest at lower levels.
The RSI stands at 62.36 and remains above the midpoint after taking support near the 50 level, signalling strengthening momentum.
Traders may consider buying the stock at Rs 3,627, with a strict stop-loss at Rs 3,460 and an upside target of Rs 3,950, while maintaining disciplined risk management.
Strategy: Buy
Target: Rs 3,950
Stop-Loss: Rs 3,460
Shriram Finance | CMP: Rs 1,066.7
Shriram Finance is displaying strong bullish momentum after breaking above a key trendline resistance and continuing to move higher. The stock has recently surpassed its previous swing high and is sustaining above the breakout level, indicating continued buying interest and the potential for further upside.
The rising EMA structure reflects strengthening trend momentum, while the earlier accumulation near the 200-day EMA, followed by the breakout, reinforces the positive technical setup.
Based on the current chart structure, traders may consider buying the stock at Rs 1,067, with a strict stop-loss at Rs 1,015 and an upside target of Rs 1,167, while maintaining disciplined risk management.
Strategy: Buy
Target: Rs 1,167
Stop-Loss: Rs 1,015
Titan Company | CMP: Rs 4,481.1
Titan Company is exhibiting strong bullish momentum after a prolonged accumulation phase near its 200-day EMA, followed by a sustained higher high-higher low formation. The stock recently found support at its 20-day EMA and delivered a breakout above its previous swing high, indicating renewed buying interest and the continuation of the prevailing uptrend.
The rising EMA structure further reinforces the positive trend, while the RSI stands at 63.67 and remains above the midpoint, signalling sustained momentum and bullish strength.
Based on the current technical setup, traders may consider buying the stock at Rs 4,481, with a strict stop-loss at Rs 4,300 and an upside target of Rs 4,850, while maintaining disciplined risk management.
Strategy: Buy
Target: Rs 4,850
Stop-Loss: Rs 4,300
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.