Top 10 Short-Term Trading Ideas by Experts for the February Series
Indian market closed in the red for the week ended January 22 after snapped 3 weeks of winning streak. The S&P BSE Sensex and Nifty50 fell by about 0.4 percent each while the big fall was seen in the small & midcaps.
Experts advise investors remain cautious as it is the expiry week where traders will rollover their bets from the current January series to the February series.
“The Nifty50 is trading at overbought levels with the market struggling to hold on to the current levels. Nevertheless, the Nifty continues to be in a bullish trend and is expected to continue with this trend unless it breaks the support level of Nifty 14,200,” Umesh Mehta, heads of research at SAMCO Group.
“A break below this level can also lead to a swath of investors who will look to book profits and can push the index as low as 13,100 levels. Hence, we believe that traders should tread cautiously from hereon,” he added.
“We expect the Nifty50 to settle near the 14,500 mark with strong support emerging near 14,200 levels. The index could climb towards the resistance mark near 14,700-14,750 on the upside,” Navneet Daga, Senior Derivatives Analyst – Institutional Equities, YES SECURITIES.
“Interestingly, India VIX remained still near lower band even in correction days that indicates trader’s expectation of a mild correction, and wild intraday gyration to continue,” he added.
Collated below is a list of stocks from various experts as short term trading strategies that investors could look at for the next 3-4 weeks:
1. Tata Steel:
LTP: Rs 646Buy around Rs 640Target: Rs 740Stop Loss: Rs 585Upside: 14 percent
The stock has maintained a strong base near Rs 585-595 zone. The RSI also has indicated a trend reversal to signal a buy. With the chart looking attractive, we suggest buying this stock around Rs 640 for a target of Rs 740, and a stop loss can be placed below Rs 585.
2. Britannia Industries:
LTP: Rs 3610Buy around Rs 3,600Target: Rs 3,900Stop Loss: Rs 3,440Upside: 8 percent
Positive crossover of 20 & 50 DMA's indicating strength. Key support lies at Rs 3,450-3,460 zone until this break decisively, a long position can be held.
Investors can take an entry around Rs 3,600 level with a stop loss of Rs 3,440 on a closing basis for the target of Rs 3,900.
3. Reliance Industries:
LTP: Rs 2049Buy around Rs 2,030Target: Rs 2,130Stop Loss: Rs 1,970Upside: 4 percent
One can buy the stock around Rs 2,030 for the target of Rs 2,130, and a stop loss can be placed below Rs 1,970 mark.
BuyLTP: Rs 55.70Target price: Rs 74Stop loss: Rs 44Upside: 33%
The stock has traversed its 20-day EMA on the monthly chart for the first time after March 2018. It is accompanied by the classic ‘bullish crossover’ in the combination of two key moving averages i.e. 5 and 20. Hence, the mild profit-booking in the current month should ideally be used as a buying opportunity.
Traders are advised to accumulate this stock on a decline around Rs 53 to Rs 49.
SellLTP: Rs 893Target price: Rs 860Stop loss: Rs 935Downside: 4%
The entire banking space nosedived last Friday. This stock was holding well throughout the first half but it finally succumbed to the selling in some of its larger peers.
Due to this negative rub-off, we witnessed a decent correction in the stock, breaching a few key levels.
If we look at the daily chart, we can clearly see a breakdown from the important swing lows around Rs 918. It closed convincingly below its 20-day EMA.
If the sell-off continues in the market, this high beta name would probably see some serious correction. Traders can look to sell the stock on a bounce towards Rs 900 - 910.
BuyLTP: Rs 393.80Target: Rs 470Stop Loss: Rs 350Upside 19%
Biocon is currently moving in an uptrend channel. It has recently corrected to its lower band of the uptrend channel.
We recommend a buy with a target of Rs 470, and a stop loss can be placed below Rs 350 for a medium-term perspective.
BuyLTP: Rs 808Target: Rs 880Stop Loss: Rs 767Upside 9%
CIPLA has been trading in an upward trending channel. It has been trading above 200 DMA that indicates a positive outlook on the stock.
We recommend a buy on CIPLA above Rs 825, for a target of Rs 880, and a stop loss can be kept below Rs 767 for a short-term period.
BuyLTP: Rs 1519Target: Rs 1650Stop Loss: Rs 1440Upside 8%
PVR is recovering after a downtrend and has posted a breakout from the ascending triangle price formation. We recommend a buy above Rs 1515 for a target of Rs 1650 from a medium-term perspective, and a stop loss can be placed below Rs 1,440 on a closing basis.
BuyLTP: Rs 3303Target: Rs 3550Stop Loss: Rs 3140Upside 7%
The stock closed at Rs 3303.10 on 22nd January 2021. It made a 52-week low at Rs 1506.05 on 13th March 2020 and a 52-week high of Rs. 3327.95 on 20th January 2021.
The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2542.96.
One can buy in the range of 3270-3280 levels for the upside target of
3500-3550 levels with a stop loss placed below 3140.
10. TVS Motor:
BuyLTP: Rs 522Target: Rs 570Stop Loss: Rs 480Upside 9%
The stock closed at Rs 521.95 on 22nd January, 2021. It made a 52-week low of Rs 240.10 on 07th April, 2020 and a 52-week high of Rs. 535 on 22nd January, 2021.
One can buy in the range of 510-515 levels for the upside target of 560-570 levels with a stop loss below Rs 480.