Equity benchmarks rebounded with moderate gains on November 9, with the Nifty 50 rising 0.23 percent despite weak market breadth. Around 1,848 stocks declined against 1,445 advancing stocks on the NSE. The market may extend its uptrend, supported by positive factors, although profit booking and consolidation at higher levels cannot be ruled out. Here are some short-term trading ideas for investors and traders to consider:
Jigar Patel, Senior Manager - Equity Research at Anand Rathi
Canara Bank has formed a bullish divergence on the daily RSI, indicating improving underlying momentum and the possibility of a trend reversal. Additionally, the stock has decisively moved above its previous two significant swing highs, signalling an improvement in its overall price structure.
The stock has also reclaimed its crucial 50-day SMA, further strengthening the bullish outlook. Sustained trading above these technical levels could support further upside momentum. Traders can maintain a positive bias and look for buying opportunities on dips. Long positions can be considered in the Rs 124–128 zone.
Amara Raja Energy has witnessed a breakout from an inverse head-and-shoulders pattern, indicating a potential bullish reversal and an improvement in its price structure.