The benchmark indices rebounded sharply on October 9, with the Nifty 50 rising 1.3 percent amid positive market breadth. Around 1,978 stocks advanced, compared with 1,267 that declined on the NSE. The market may extend its uptrend with moderate gains, although consolidation and range-bound trading could persist. Here are some short-term trading ideas to consider:
Jatin Gedia, Technical Research Analyst, VP, Derivatives & Technical Research at Teji Mandi
City Union Bank has witnessed buying interest from the support cluster of Rs 221-219, which coincides with the 50 percent and 61.8 percent Fibonacci retracement levels of the previous five-wave impulsive move from Rs 210 to Rs 232. The daily and hourly momentum indicators show a Bullish crossover which is a buy signal.
On the weekly charts, the stock formed a hammer candlestick pattern, suggesting strong buying interest at support levels. The volumes have also picked up suggesting greater participation in the direction of the primary trend. We expect the stock to rise toward Rs 251, which is the 150 percent Fibonacci extension level of the previous wave.
NTPC Green Energy has formed a triple bottom pattern at the Rs 85-86 zone and witnessed a sharp upmove towards Rs 96. The recent pullback towards Rs 89 - the 61.8 percent Fibonacci retracement level was bought into and the stock formed a bullish candle on the daily charts.