Equity benchmarks witnessed a 1 percent correction on June 8 amid weak global cues, with bears dominating market breadth. Around 2,411 shares came under selling pressure compared to 579 advancing stocks on the NSE. Following the sharp sell-off, the market is expected to consolidate and trade in a range-bound manner. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager – Equity Research at Anand Rathi
Balrampur Chini Mills | CMP: Rs 550.4
Balrampur Chini Mills is holding firmly above its 50-day SMA, indicating a strong underlying trend. Momentum remains positive, with the RSI sustaining above the 60 mark, while the DMI indicators continue to signal bullish strength.
The overall technical setup remains favourable, suggesting the potential for further upside in the stock. Traders may consider entering long positions in the Rs 555-545 zone, with a target of Rs 600.
Strategy: Buy
Target: Rs 600
Stop-Loss: Rs 525
Caplin Point Laboratories | CMP: Rs 2,111
A breakout above the previous swing high, as seen on the Caplin Point chart, signals a continuation of the bullish trend and strengthening price momentum. Adding to the positive outlook, volumes have surged significantly, indicating strong buying interest. Furthermore, the 20-day SMA is trending higher, reinforcing the ongoing uptrend and suggesting the potential for further upside in the stock.
Traders may consider entering long positions in the Rs 2,115-2,100 zone, with a target of Rs 2,275.
Strategy: Buy
Target: Rs 2,275
Stop-Loss: Rs 2,000
Varun Beverages | CMP: Rs 522.15
Varun Beverages (VBL) is facing strong resistance near the 61.8 percent Fibonacci retracement level, which aligns with a flat Ichimoku Cloud resistance zone. The formation of a Shooting Star, followed by a Bearish Engulfing pattern on the daily chart, indicates weakening bullish momentum.
Additionally, bearish divergences on the MACD, DMI, and Stochastic Oscillator suggest a higher probability of a corrective decline unless the stock decisively breaks above the resistance zone. Traders may consider entering short positions in the Rs 525-520 zone, with a target of Rs 475.
Strategy: Sell
Target: Rs 475
Stop-Loss: Rs 550
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Max Healthcare Institute | CMP: Rs 1,007.45
Max Healthcare witnessed a strong bounce in the last trading session, and the stock appears to have formed a short-term base near the recent lows in the Rs 900-920 range. On the upside, there is no major resistance until Rs 1,100, making the risk-reward ratio favourable on the long side.
There has also been short covering, resulting in relatively low leverage in the stock, which is a positive sign. Options data suggest that the Rs 1,000 strike has the highest Call base, and a close above this level would indicate strength and increase the likelihood of Call unwinding, which could help the stock move higher.
The Nifty Healthcare Index has also bounced strongly from its breakout zone, increasing the probability of the sector performing well from current levels. Traders may buy Max Healthcare Futures in the Rs 1,000-1,010 range, with a stop-loss below Rs 975.
Strategy: Buy
Target: Rs 1,065, Rs 1,090
Stop-Loss: Rs 975
Federal Bank | CMP: Rs 304.6
Federal Bank has broken out of a sideways consolidation pattern, accompanied by an increase in open interest, indicating long build-up.
According to options data, there have been significant additions in Put contracts at the Rs 290-300 strikes, while the highest Call base is at the Rs 310 strike. A breakout above these levels could trigger further upside momentum through Call unwinding.
The stock has closed above the Rs 300 mark, which is also the maximum pain level, indicating a positive short-term trend. Traders may buy Federal Bank Futures in the Rs 303-306 range, with a stop-loss below Rs 297.
Strategy: Buy
Target: Rs 315, Rs 325
Stop-Loss: Rs 297
Shree Cement | CMP: Rs 23,535
Shree Cement has broken below its consolidation range, accompanied by an increase in open interest, indicating fresh short build-up. As a result, the overall near-term trend remains negative.
Apart from the Rs 24,000 strike, most strikes above it have witnessed Call additions. The Rs 25,000 and Rs 26,000 levels have emerged as immediate Call bases and are likely to act as strong resistance levels.
The stock is also trading well below its maximum pain level of Rs 24,750, indicating significant weakness ahead. Therefore, the risk-reward ratio remains favourable on the short side. Traders may sell Shree Cement Futures in the Rs 23,500-23,700 range, with a stop-loss above Rs 24,500.
Strategy: Sell
Target: Rs 22,950, Rs 22,750
Stop-Loss: Rs 24,500
Vidnyan S Sawant, Head of Research at GEPL Capital
Fortis Healthcare | CMP: Rs 989.1
Fortis Healthcare has exhibited a robust price structure over the longer term. On the weekly chart, the stock has successfully retested the breakout level of a flag-and-pole pattern, which coincides with the 20-week EMA. This indicates a bullish mean reversion and suggests that the stock is likely to resume its primary uptrend.
Furthermore, the MACD remains in positive territory, reflecting sustained bullish momentum and reinforcing the constructive technical outlook for the stock.
Strategy: Buy
Target: Rs 1,068
Stop-Loss: Rs 950
Deepak Fertilisers and Petrochemicals Corporation | CMP: Rs 1,451.6
Deepak Fertilisers has maintained a robust long-term uptrend since April 2020, marked by a consistent formation of higher highs and higher lows on the monthly chart. The stock continues to respect its key moving averages, with corrective phases witnessing bullish mean reversions, underscoring the strength of the underlying trend.
Several bullish polarity shifts, wherein previous resistance levels have transformed into support, further reinforce the constructive price structure. Additionally, the MACD remains in positive territory and continues to trend higher, indicating sustained momentum and supporting the continuation of the prevailing uptrend.
Strategy: Buy
Target: Rs 1,597
Stop-Loss: Rs 1,394
Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan
Canara Bank | CMP: Rs 131.9
Canara Bank experienced a five-wave decline between April and May, during which it slipped below its 200-day SMA. Following this downtrend, the stock retraced nearly 61.8 percent of the prior decline. In Monday’s session, it retested the 200-day moving average but encountered selling pressure at that level.
The overall structure suggests that the A-B-C corrective rally, forming wave B, has likely concluded, and wave C may now begin to unfold. This could potentially pull the stock down towards the Rs 125-122 range in the near term. Traders may sell Canara Bank June Futures at the current market price (CMP), with a stop-loss of Rs 137.50.
Strategy: Sell
Target: Rs 125, Rs 122
Stop-Loss: Rs 137.50
InterGlobe Aviation | CMP: Rs 4,359.7
InterGlobe Aviation is currently in a downtrend and is trading below its 200-day SMA on the daily chart. In Monday’s session, the stock also slipped below the 20-day SMA and 40-day EMA, both of which are key short-term moving averages.
Technically, the stock is forming a triangular pattern on the daily chart, while momentum indicators have turned bearish, signalling an early warning of a potential breakdown. The triangle support is placed around Rs 4,305. Given that this pattern has developed within an existing downtrend, the probability of a downside breakout remains high.
Strategy: Sell
Target: Rs 4,160, Rs 4,000
Stop-Loss: Rs 4,545
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