Equity benchmarks gave up some of the previous session's gains, with the Nifty 50 declining 0.44 percent on October 14. However, market breadth on the NSE remained positive, with around 1,850 shares advancing against 1,421 declining shares. The market is likely to remain range-bound until the benchmark indices decisively reclaim their short-term moving averages. Against this backdrop, here are some short-term trading ideas to consider:
Redington has reclaimed the 20 EMA on the daily chart, indicating improving sentiment. The 20 EMA and 50 EMA have formed a bullish crossover, while the stock is trading comfortably above the 200-day moving average (200 DMA), indicating a positive broader trend.
Additionally, the hourly RSI has registered a bullish crossover, suggesting improving momentum. Based on the chart setup, the trend is likely to remain strong in the coming days, with potential upside towards Rs 422. On the downside, support is placed at Rs 388, below which the stock could witness a deterioration in momentum.
Tata Technologies has broken out of a consolidation pattern on the daily chart, indicating improving sentiment. The price has been sustaining above the 20 EMA, while the daily RSI has registered a bullish crossover and continues to rise, suggesting strong momentum.
The short-term trend is likely to remain positive, with potential upside towards Rs 788. On the downside, support is placed at Rs 720, below which the stock could witness a sharp decline.