Equity benchmarks extended their losing streak for a fourth consecutive session, with the Nifty 50 declining 0.39% on October 23 amid weak market breadth. On the NSE, about 2,863 stocks declined, compared with 434 that advanced. The market is expected to consolidate in the near term, with bears likely to maintain the upper hand. Here are some short-term trading ideas to consider:
Jatin Gedia, Technical Research Analyst, VP, Derivatives & Technical Research at Teji Mandi
Bharti Airtel has broken out of a falling channel and is forming higher highs and higher lows on the daily charts, suggesting a potential trend reversal from bearish to bullish. The stock is sustaining above its short-term 20-day moving average (Rs 1,820), indicating underlying strength. The daily momentum indicator has also generated a positive crossover, signalling a buy opportunity.
Over the past five trading sessions, the stock has consolidated in the Rs 1,860-1,920 range after rallying from Rs 1,760 to Rs 1,920. Consolidation following a rally is generally considered a bullish sign, while low-volume selling suggests an accumulation phase. We anticipate an upside breakout from this consolidation range.
ONGC has been in a downtrend. However, last week, the stock formed a strong bullish candle on the weekly chart following two consecutive Doji formations, suggesting that selling pressure is easing and a potential trend reversal may be underway.