The benchmark indices extended their stellar run for the sixth consecutive session on November 5, with the Nifty 50 surging 2.4 percent amid healthy market breadth. Around 2,373 stocks advanced against 956 declining stocks on the NSE. The market may witness some consolidation and profit booking following the sharp rally. However, the broader trend remains firmly in favour of the bulls. Here are some short-term trading ideas for investors and traders to consider:
Neel Parekh, Derivatives Research Analyst, SAMCO Securities
Bank of Maharashtra has broken out above its descending trendline with strong bullish momentum, signalling a potential resumption of its primary uptrend. The stock has also witnessed a positive change in polarity, with the earlier resistance zone now acting as support, indicating an improvement in its price structure.
The breakout is further supported by a surge in trading volumes above the 20-day average, while the RSI at 59 reinforces the strengthening momentum.
NSE has broken out of an IPO base pattern, supported by a strong bullish candle on the daily chart, with the stock closing near the day's high. A sustained increase in trading volumes over recent sessions indicates improving buying interest, while the 14-period RSI continues to trend higher, reinforcing the positive momentum.