The Indian stock market continues to present exciting opportunities for traders seeking short-term gains. According to Ajit Mishra, Senior Vice President of Technical Research at Religare Broking, three stocks currently stand out with strong technical setups and promising momentum.
Grasim Industries: Building Momentum
Grasim Industries is showing remarkable strength on the charts. The stock has recently broken out of a consolidation phase, signaling potential upward movement. Technical indicators suggest sustained buying interest around current levels.
Key levels to watch: The stock has strong support at ₹2,150, while resistance is expected near ₹2,350. Traders should monitor volume patterns for confirmation of the breakout.
Aurobindo Pharma: Healthy Prospects
The pharmaceutical major is displaying positive technical signals after a period of consolidation. Aurobindo Pharma's chart pattern indicates accumulation at lower levels, suggesting institutional interest.
Technical outlook: The stock faces immediate resistance around ₹1,150, with support established at ₹1,050. Breaking above the resistance level could trigger further upward movement.
City Union Bank: Financial Strength
This private sector bank is exhibiting a classic breakout pattern from a symmetrical triangle formation. The banking stock has been consolidating for several weeks and now shows signs of renewed momentum.
Price action analysis: The stock has crucial support at ₹155 and resistance at ₹170. A decisive break above the resistance level could lead to significant short-term gains.
Expert Trading Strategy
Ajit Mishra recommends that traders consider these stocks with strict stop-losses to manage risk effectively. The current market environment favors selective stock picking, and these three counters offer favorable risk-reward ratios for short-term positions.
"The market is showing sector-specific momentum, and these stocks have formed strong technical setups that suggest potential upside in the near term," Mishra noted in his analysis.
Market Context
The Indian equity markets have been experiencing volatility amid global uncertainties and domestic factors. However, selective stocks continue to outperform, offering opportunities for discerning traders. The cement, pharmaceutical, and banking sectors have shown relative strength recently, making these picks particularly timely.
Investors should monitor overall market sentiment and global cues while trading these recommendations. Proper position sizing and disciplined risk management remain crucial for successful short-term trading.
